How to identify discrepancies in the CIBIL Score and rectify them?

Discover how to spot and correct errors in your CIBIL Score effortlessly, with a little help from the Bajaj Finserv Credit Pass

Your credit score plays a crucial role in your financial well-being. It’s a mirror that reflects your financial behaviour. Lenders use it to decide whether you’re eligible for loans or credit cards. That’s why it’s essential to ensure that your credit score is accurate. So, what do you do if you suspect there might be discrepancies in your CIBIL Score? In this article, we’ll explore how you can identify and rectify them to tidy up your finances.

What is your CIBIL Score?

Before we dive into the details, let’s quickly refresh our understanding of the CIBIL Score. It’s a three-digit number that grades how good you are at handling your finances. The score ranges from 300 to 900, and the closer you are to 900, the better your financial health. A low score can make it tricky to get loans or credit cards at favourable terms.

Common discrepancies in CIBIL Scores

Let’s identify some of the common troublemakers:

Incorrect personal information: If you’ve moved to a new place, but the address in your credit report still shows the old one, that’s an error you need to fix. Errors in your name, contact details, or PAN card information can also weasel their way onto your credit report.

Errors in credit account information: Sometimes lenders might include the wrong information or even duplicate it when reporting to credit information companies. Imagine you borrowed money once, but it shows up twice on your report. That can create some serious issues down the line for your credit health.

Missed or incorrect payment records: Each on-time payment contributes positively to your credit history. But sometimes, it might show that you missed a payment when you didn’t. It can make you seem like an unreliable borrower, even though you have been handling your finances responsibly. That’s not right, and it needs to be fixed promptly.

Identity theft or fraud-related issues: Sometimes, someone might pretend to be you and take out loans or credit cards. If you see accounts you never opened or transactions you never made, it’s a red flag.

Why identifying discrepancies is crucial

Imagine you’re trying to build a house. The most crucial aspect is your foundation: if it isn’t solid, any structure you build on top of it will be vulnerable. If your credit report has errors, your financial foundation won't be strong either.

Mistakes in your credit report can hamper your ability to get loans or credit cards, and you might end up paying a lot more in interest because lenders will view you as a risk. So, it’s essential to spot and fix any errors as soon as possible.

How to identify discrepancies

Here are the steps you need to take to identify discrepancies in your credit report:

1. Get your free CIBIL Report: Head on over to the official TransUnion CIBIL website and avail of your free CIBIL Report offered once a year.

2. Review your personal information: Look closely at every detail – your name, address, and contact details – and make a note if you notice something’s wrong. Like, if your name’s spelled incorrectly or your address is not up to date.

3. Scrutinise credit account details: Investigate your credit account details to identify loan or credit card accounts you don’t recognise, any duplicates, or incorrect information.

4. Examine payment records: Ensure all your payments are correctly recorded. If there are missed payments you know you made on time or any other mistakes, note them down.

Anything that doesn’t add up is your suspect. Gather documents that can prove your point – those are your evidence.

Rectifying discrepancies

It takes a bit of effort, but rectifying discrepancies makes everything better for your credit health. Here’s how you can go about fixing those errors:

1. Fill out the dispute form: On the official TransUnion CIBIL website, you’ll find a dispute form. Fill it in with all the details of the discrepancy, attaching any supporting documents.

2. CIBIL investigation: Once your dispute is filed, CIBIL will begin its investigation and contact the concerned lender, who will have 30 days to respond.

3. Resolution: If the lender agrees they made a mistake, CIBIL will make the necessary changes. Your credit report will get updated, and you’ll receive the revised report. However, should the lender disagree with your dispute, your credit report will remain unchanged. In this case, you can contact the bank or credit institution and provide them with your evidence.

Preventing future discrepancies

Here’s what you can do to avoid future financial headaches:

Monitor your credit report regularly to catch errors early and immediately rectify them.

Maintain good financial habits, such as paying your dues on time, keeping your credit card balances low, and not opening too many new accounts.

Utilise tools like the unique CIBIL-powered Bajaj Finserv Credit Pass to monitor and manage your credit accounts.

Why use the Bajaj Finserv Credit Pass?

The Credit Pass has numerous benefits that will hold your credit health in good stead:

Real-time credit health report monitoring

Monthly CIBIL Score updates

Credit factors tracking

Interactive tools like the Credit Score Simulator and EMI Calculator

Quick, hassle-free registration process

Free, unlimited access for the first 12 months

Spotting and fixing discrepancies in your CIBIL Score is vital for your financial wellness. So, be vigilant and proactive. Use the steps we’ve outlined in conjunction with tools like the Credit Pass to keep your credit report accurate and healthy.

Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same. This information does not constitute a financial advice.