Errors and mistakes in your credit report can bring down your credit score and impact your chances of getting new personal loans and credit cards. Errors can come up in your credit profile due to data entry mistakes, lender mix-ups, or even identity theft.
This makes it critical to review your free annual credit report on a consistent basis and ensure accuracy. In case you find glaring errors or mistakes in your credit report, then you should follow the given steps to dispute these errors and get the problem corrected as early as possible.
Here are five simple steps you can take:
1. Download your credit report
There are primarily four credit bureaus in the country, namely, CRIF High Mark, CIBIL, Experian, and Equifax. You should obtain your credit report from your respective credit bureau. Do keep in mind that you are entitled to one free credit report per year. This has been permitted by the regulatory authorities to help make the process of borrowing more transparent, credit reporting more seamless, and the entire process of credit disbursement seamless.
2. Inform the credit bureau
Once you are clear about a legitimate error or a discrepancy in your credit report, you should not hesitate to raise a dispute about the same online or by post with the concerned credit bureau. Clearly elaborate and mention each item you dispute, explain the reason why you feel it is incorrect, and support your claim with relevant facts and documents. You must attach proof of your claim and highlight the same. Furthermore, always request an acknowledgement or read receipt of the entire dispute raised by you.
3. Contact the lending institution
Reach out to the lending institution that has reported the incorrect information. If the mistake was initiated at their end, request them to rectify the same. Still, if the issue is related to identity theft or misappropriation of data, then you should directly get this resolved from your respective credit bureau. If in doubt, discuss it with the concerned customer support team of your credit bureau and proceed according to their instructions.
4. Wait 30 days for the investigation
All credit bureaus follow a set trajectory of resolving customer disputes. They are mandated to investigate your dispute within 30 days. While the investigation continues, the disputed entry is removed temporarily. Furthermore, once the investigation is completed, you will receive an updated credit report clearly reflecting the changes made after you raised a dispute.
5. Recheck your credit report
Upon the completion of the entire process, you should allow time for the updates to reflect clearly. If no changes appear after a few months, then you should again follow up with both your credit bureau and the lending institution. You can also request the bureau to include a note summarising your dispute for future lending institutions.
That is why regularly monitoring and promptly raising disputes will ensure that your credit report continues to remain accurate, your credit score remains high, and this cumulatively protects your financial stability and economic well-being.
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