Your credit report is the last time that you would like to go through it. Chances are high that some information in the credit report is inaccurate. It is important to note that all wrong information in the credit report is considered a red flag.
Now, this alerts the lenders before sanctioning any loan application you submit for money. But the best part is that all the red flags marked in the report can be resolved.
If you don’t get hold of the report, you can easily ask for a free copy of the credit report one time in a calendar year from any given RBI-approved credit bureau. This post talks about some of the common credit report errors that must be updated so that things do not escalate in the future.
- Are Closed Accounts Still Open?
Closed accounts indicate that you have successfully repaid all the dues, be it for a loan or credit card, and the account will not appear for any future activity. An open account is a clear indication that all the dues are not still paid and you still have a credit line available for use.
This significantly impacts the overall credit score and the eligibility for a new loan. So, if you find any closed accounts marked as open, make sure to report this further with detailed documented proof.
Open accounts may create problems if you seek funds. However, the DSA app in India from reputed platforms will make the journey easier. Also, they will guide you to resolve the issues in the credit reports.
- Is There any Unknown Account Linked with Your Name?
At times, people get notified for credit accounts under their name, which is completely unknown to them or does not belong to them. In case you find any such account, make sure to lodge a complaint and get it removed from the credit report. This happens mainly because of the wrong reporting by the bank or even because of the error of the credit bureau.
- Is There Any Account Marked as Delinquent?
Delinquent accounts are those that are way past their payment dates. Usually, delinquency accounts are reported as the number of days past the due date (DPD), which is shown for the last 36 months for every credit line.
If an account has been missing repayment for more than 3 months, it is declared an NPA (Non-performing asset). Such accounts cause a major hit to the overall credit score and make you doubtful about lenders.
- Is There Any Issue with Balance Errors?
Many people turn off data related to account balances and credit limits. If this is the case, overall credit utilization will be miscalculated. The credit utilization report constitutes 30% of the FICO credit score, so it is imperative to double-check whether the information is accurate.
- Is There Any Missing Accounts?
This is technically not an error. You might be aware that some lenders don’t report to the credit bureaus at regular intervals. In case all the on-time payments are not being reported, you won’t be able to strengthen your credit score.
Without a strong and respectable credit score, you may face problems getting your loan applications approved. Still, a professional loan agency such as Andromeda helps clients in every possible way so that they get the required amount as a loan.
- Are There Any Fraudulent Transactions?
This is one of the most wicked credit report mistakes. Unlike other data-entry mishaps, these errors mainly happen because of identity theft or fraudulent activities. One potential example could be credit accounts you didn’t apply for or transactions you did not make.
- Is There Any Incorrect Credit Limits?
The credit utilization ratio becomes increasingly important for individuals to maintain the right credit score. A higher credit score represents an individual’s dependence on credit. It is important to make sure that the credit limit on the credit card is accurate and is not lower than the actual limit. In case of any discrepancy, make sure to get in touch with Credit Bureaus, like CRIF, to resolve the issue.
Checking credit reports and disputing errors on them is indeed an intimidating task. It can also become overwhelming. But doing so correctly can improve financial well-being. So, what are you waiting for?
Go can check your credit report for the current financial year, and if you don’t have it, request it from RBI and start analysing. Do write about the post below in the comment section. You can also share about other problems which you may face in your credit report.
