How can you raise your credit score by fixing errors in your credit report?

Raise your credit score: It is always a good idea to check your credit report and score on a regular basis. It will assist you in keeping abreast of all the details pertaining to your credit cards and loans. Additionally, it will assist you in locating any inaccurate data or entries in your credit report that may have a detrimental impact on your credit score.

You can improve your credit score by correcting errors in your credit report by reviewing it on a regular basis, pointing out any incorrect information, and disputing it with the credit bureaus. This will guarantee that your credit history is accurate and could result in a higher credit score.

What is a Credit Score?

Your creditworthiness is rated by a three-digit number called your credit score. The range of FICO scores is 300 to 850. Your chances of being approved for loans and receiving better rates increase with your score.

• Poor: 300–579
• Fair: 580–669
• Good: 670–739
• Very good: 740–799
• Excellent: 800–850

Your credit history, which comprises details like the number of accounts, total amount of debt, repayment history, and other elements, is the foundation of your credit score. Credit scores are used by lenders to assess your creditworthiness, or your propensity to make timely loan repayments.

Error types that can show up in a credit report

Let’s first examine the different kinds of errors that can occur in a credit report before learning how to correct them. The following are a few of these.

kinds of mistakes that can appear in your credit report

errors pertaining to identity.
These are errors in some of your most crucial personal information.

• The first, middle, or last name is incorrect.
• Wrong address: An outdated or inaccurate residential address, either current or past.
• The primary phone number is either out-of-date or incorrect.
• Inaccurate PAN information: Your permanent account number (PAN) is incorrect.
• Mixed identity: Because of name similarity, information about another person appears beneath your profile.
• These mistakes may affect your credit score and suggest that the credit bureau requires accurate personal data.

errors pertaining to accounts

These are errors in the credit or loan accounts.

• Closed account still open: Even after you have closed or paid off an account, it still appears to be open.
• Unknown accounts: An account that has not been created or approved has surfaced, which may indicate identity theft.
• Inaccurate default status: Even though an account is regularly paid, it appears to be in default.
• Inaccurate payment dates: It is necessary to update any dates associated with the account, including EMI payment dates and disbursement dates.
• Duplicate accounts: Credit limits are skewed when the same account is listed more than once.
• Old dormant account: You haven’t closed the account yet.

errors relating to balance

A discrepancy between the amounts in your accounts is what this alludes to.

• Inaccurate current balance: Your records must reflect the amount still owed on an account.
• Inaccurate credit limit: An account’s authorized credit limit or initial loan amount must be accurately shown.
• Other balance errors: You need to adjust the total amount of past dues, past due amounts, or cash/credit limits.

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Raising a dispute

Let’s now examine the dispute-raising procedure. To file a dispute with the credit information company (CIC), there is no cost. You can also bring up the issue directly with the bank.

Step 1: If you have found a mistake in your CIBIL report. Go to www.cibil.com, the CIBIL website.

Step 2: The “Consumer Grievance” tab can be found on the main page. Click the “Consumer Dispute Resolution” link under this tab. Information about how to file a dispute can be found on this page.

Step 3: By signing into your CIBIL account, you can file a dispute. You must first register if you haven’t already. It costs nothing to register.

Step 4: After logging inhit the “CIBIL Report” link.

Step 5: After that, examine your report. CICs must give consumers a free credit report once a year in accordance with RBI regulations. Click the “Raise a Dispute” link at the bottom of the page if you find any inconsistencies. The “CIBIL Dispute Center” section will be displayed to you.

Step 6: The “Access Dispute Form” button should be clicked. Choose the section of the report that you wish to contest, such as the account section, contact details, employment details, credit application history, or personal information.

Step 7: Click the “Find Solution” link after you reach the “My query is not listed here” section and then click the “Raise a Dispute” button.

Step 8: You will be shown the details of the section you want to dispute.

Step 9: Then, you can review the dispute details and then press the “Proceed to Next Step”tab.

Step 10: Now, fill in the required bank account details and click “Confirm and Submit Disputes”.

Step 11: An email containing the Dispute ID and additional information will be sent to you. The Dispute ID allows you to monitor the dispute’s development.

Procedure for resolving disputes

The data presented in the credit report is derived from the data that the bank or banks submitted to the credit information company (CIC).

Step 1: The CIC will get in touch with the relevant bank when you bring up a disagreement with them.

Step 2: Then, the dispute will be looked into by the bank. The bank will give the CIC the updated information if the discrepancy is accepted, and the CIC will then update your credit report.

Step 3: After that, you will be informed and the credit report won’t be updated if the bank denies the dispute.

Step 4: A dispute resolution process typically takes 30 days.

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