The credit score is like a financial fingerprint. This is a unique identifier that describes lenders as to how trustworthy you are when handling debt. If you have a high CIBIL score, your chances of securing loans at favorable interest rates will be better. But, what will your reaction be when your credit score observes a sudden dip? At this time, your first thought will be that the score has dropped because of a mistake you made- for instance, you might have missed out on a payment or maxed out on credit cards. 

But did you know that errors on the credit report might also be responsible for the drop in credit score? These credit errors are often overlooked, and they create unnecessary roadblocks that can make it highly difficult for you to get loans, mortgages, or credit cards. However, the good news is that these mistakes are fixable. Once you understand the reason behind credit errors and how to fix them, you will be able to ensure that your record is spotless. 

Incorrect Personal Information 

Did you know that you could be denied a loan because your credit report is mixed with someone else’s report? While it sounds rare, it is not impossible and happens to more people than you can imagine. Clerical mistakes like misspelled names, incorrect addresses, or a wrong date of birth can lead to errors in the credit report. There are times when your report might show someone else’s credit history. This can damage your score, especially if this person’s credit record is poor. 

How can you fix it- You should always carefully review the credit report and see if everything mentioned is correct. If you spot the slightest bit of a mistake, you need to ensure that you get it corrected. You have to raise errors with the credit bureau by providing a valid ID proof along with the right information. 

Incorrectly Reported Late Payments 

One thing that can severely impact your CIBIL score is the payment history. Even if a single late payment is reported incorrectly, it can bring your score down significantly. There are times when you pay all your dues timely but your lender or bank can fail to update the payment status rightly. This can cause a negative remark to land on the report. 

How can you fix it- Firstly, check cibil score online, and if it looks absurd, check your credit report to see if there are late payment records. If you spot any, you have to look for proof of timely payments, like payment confirmations or bank statements. Raise a dispute with the credit bureau, inform your lender, and request them to rectify the records. As soon as the error is resolved, your credit score will regain its rightful position. 

Accounts That Are Not Yours

We all are digitally connected now, and someone can create an account with your name. There is a scope of fraudsters stealing your identity and opening an account in your name, max it out, and disappear into thin air. This will leave you with a huge debt and of course, a ruined credit score. Noticing unfamiliar accounts in your credit report should be immediately reported as you can become a victim of fraud. 

How can you fix it- You have to alert the credit bureau immediately while also filing a dispute. After this, inform your bank or your financial institution about the fraudulent account and provide all the necessary proof that will help the authorities understand that the account indeed isn’t yours. Filing a complaint with law enforcement officials to clear your name and prevent any further fraud might also be necessary. 

Closed Accounts Showing Active

Most people think that as soon as a credit account is closed, it will disappear from their credit report. While it does, there are times when the closed accounts will keep showing active and will affect the credit utilization ratio and debt-to-income ratio. This will make your lenders think that you have more debt than what you do. 

How to fix it- If you see an active account that you have closed long back, you have to contact the concerned authorities and request them to update the status with the credit bureau directly. You might also raise a dispute and attach all relevant documentation, like closure confirmation letters or emails from the bank. 

Duplicate Accounts/Loans

As a result of clerical errors, a single loan account or a credit card can appear twice in your credit report. This duplication will make it look like you have a greater debt than what you owe, which will negatively impact your credit score. This impact will make lenders refrain from providing you with new credit because it will appear as if you are financially overburdened. 

How to fix it- Ensure that you are correcting your report with the actual credit statements. In case you see a duplicate entry, immediately raise a dispute with the credit bureau along with relevant proof that the duplicate account is a mistake. Your lender might also have to update the records to ensure that accurate information is reflected. 

How Can You Dispute The Credit Errors

While the process associated with correcting the errors on your credit report might be simple, it requires persistence. Here are the steps to follow- 

  • Get a copy of your CIBIL report from the official website or credit bureaus. You can also check cibil score online. 
  • Go through your credit report and look for mistakes. 
  • Gather all relevant documents that will serve as proof- like bank statements, closure letters, and payment confirmations. 
  • You can raise an online dispute through the portal of your credit bureau and provide detailed explanations along with the required evidence to show that your credit report has mistake/s. 
  • Usually, credit bureaus might take up to thirty days to investigate your dispute and solve it. Keep following up to make sure you get the corrections in place. 
  • Once the corrections are made, check the credit score to understand if accurate information is reflected. 

Key Takeaways 

The CIBIL score is one of the most essential parts of your financial health which impacts the ability to gain loans or credit at a favorable interest rate. You can now easily check cibil score online and if you find any disputes, raise them immediately. Any errors on your credit report will unnecessarily drag down the score. Ensure that you are checking the credit report at least once every year and take prompt action if you spot errors. Remember that your credit score should reflect your actual financial health and not identity mix-ups.