How to Dispute Credit Report Errors: A Practical Guide

Consider the situation when you check your credit score before applying for a loan and find an account that you never applied for, or even worse, an account that you have already paid off with a balance that shows as still owing.

This is not a matter to be overlooked, as a mistake can affect your my credit score differently than your real repayment history.

First, Locate the Error

The first step is to find out how to check credit report from the relevant credit bureau. It's not enough to just consider your credit score.

When verifying your cibil score, crif credit score, or experian credit score, look for:

1. Unknown accounts

2. Duplicate accounts

3. Incorrect outstanding balances

4. Incorrect payment or account status

5. Unknown credit inquiries

6. Incorrect personal details

In the case of CIBIL, some of the items mentioned include duplicate accounts, incorrect balances, incorrect account status, and unknown inquiries.

Avoid Trying to “Fix” Your Score Right Away

One mistake is looking for ways for how to increase credit score right away. In case there is an error, taking out additional debt won’t solve the issue with the record.

The same goes with evaluating the credit card score or trying to find out if the old account influences your report. Look for the cause first.

Disputing Errors on a Credit Report

We at PrimeScore advise our readers that after detecting any error, gather necessary documents, including receipts for payment, closures, or any other relevant proof.

In case of CIBIL, one can use his/her MyCIBIL account to access Credit Reports, choose the dispute option, and specify incorrect data. Several fields can be disputed at once.

Then, the dispute is sent to the respective lender by CIBIL. It takes approximately 30 days from the start of the process for resolution, as per CIBIL. This holds true even in case one finds something wrong while analyzing information received from paisa bazaar credit score, bajaj finance or any other similar financial source.

Do not wait till the application for a loan is rejected. Keep checking your credit report regularly and dispute if there is an error.

FAQs

1. Can I dispute an incorrect CIBIL entry?
Yes. CIBIL has an online mechanism to file disputes on inaccurate information.

2. Can CIBIL remove an entry on its own?

No. In general, correcting any entries needs permission from the concerned credit institution.

3. What kind of documents can be submitted as proof for disputes?

Payment slips, loan closure slips, bank statements and other pertinent documents can be used to prove the accuracy of information.

4. What is the timeframe for the dispute to get settled?

As per CIBIL, it can take about 30 days depending on the reply from the credit institution.

5. Do I have to dispute all my old accounts?

No. A validly recorded closed account need not necessarily be disputed.