Is CIBIL worthy? Faulty Credit Scores Upset Borrowers

Erroneous or faulty credit score is a common occurrence which happens due to mistakes in credit reports . Faulty credit score could lead to low credit score which eventually results in the rejection of your loan application. A regular  check of your credit report is mandatory to avoid any type of financial loss. Some of the common mistakes reported by customers are as follows:

As TransUnion CIBIL collates the information provided to it by the lenders, there is a possibility that your lender has not informed the credit bureau about the repayment that you have made, hence it shows incorrect information. Generally, the information is updated by the credit bureau in 30 days, so if you will check it before that, it may not show in your credit report. However, it should be taken as an error if even after 30 days the information is not reflected on your credit report.

Checking your CIBIL report on regular basis is the only way to keep a track and know if there is any information which is not relevant or incorrect. Credit score related errors are generally committed by credit data providers, including banks and NBFCs. Lenders are mostly responsible for collecting one’s credit-related data and providing it to credit bureaus.

Ways to Raise Dispute in Case of Erroneous CIBIL Report

Customers should thoroughly check their personal details, such as name, address, date of birth and PAN number. If it gets mixed up with another person, it negatively impacts your credit score. Also check if your account details, loan amount, type of credit, etc. are correct.

Any dispute in the CIBIL Report can be notified by raising a CIBIL dispute resolution request. Those who have registered on CIBIL can directly raise a dispute by logging into myCIBIL. Follow the below steps to raise a dispute regarding inaccuracies in your credit report:

Importance of Good CIBIL Score

In today’s financial system, TransUnion CIBIL holds major importance as most of the banks and NBFCs consider the credit score provided by CIBIL for loan approval and disbursal. Below mentioned are some reasons for you to maintain a high credit score:

Credit approval – Banks and NBFCs approve credits on the basis of your credit score. Maintaining a high CIBIL score will automatically increase the chances of you getting approvals easily and quickly.

Lower rate of interest – The interest rate offered by the bank on any type of loan is lower for customers with high CIBIL score.

Increased negotiation options – Customers maintaining a higher CIBIL score get a variety of loans and credit cards to compare and choose with additional benefits. Lenders also prefer to offer best deals to customers with high CIBIL score.

Financial Security – Customers with high credit score are considered to be financially more secure as compared to customers with low credit score. As high CIBIL score opens the gates of several lending products and they can avail those products at the time of need or urgency.

Therefore, CIBIL score holds a lot of importance as it makes your life financially secure. High is the credit score, more are the negotiating options with the customers. To download your credit report free of cost, you can visit Paisabazaar website. Here you can check your credit score and download your credit report, absolutely free.

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