Before applying for any kind of loans such as car loan, home loan, personal loan or two-wheeler loans, it is very important to check your credit report. Not doing so can lead to your loan getting rejected. Your credit report is very important and contains details of all the debts you have availed. Every time you avail loans, banks and financial institutions send your information to Credit Information Bureaus like CIBIL.
CIBIL creates your credit report after collecting all the information provided by banks and financial institutions. On the basis of your borrowing history and repayment track record, you will be assigned a CIBIL score between 300 to 900. On the basis of your credit score, bank decides whether to sanction your loan or not. If your credit score is very low, forget about banks sanctioning your loans.
I am sure you have understood the importance of a credit score. Now imagine if there is a mistake in your credit report. Banks will never sanction you a loan. So, it is very important to check your credit score before applying for a loan.
Types of errors in your credit score
1. Mistakes in personal details
Bank staff may make a typing error while entering your personal information such as name, date of birth, email address, PAN details and so on.
2. Account related errors
You may be shocked to find that loans and credit cards not availed by you, are included in your credit report. These are called account related errors. Also, a loan that has been closed by you may not be listed as closed by the banks. This can lead to the rejection of your loan.
How To Correct a Credit Report?
Errors in name, address, date of birth, PAN and wrong information on loan payments, loan balances, loan payments overdue and outstanding, can be corrected in the credit report.
1. To rectify errors in your credit report, you should visit the CIBIL website and fill the online dispute form. You will be asked to provide the control number. You can get this number from the credit report.
2. After submitting the online form, your request will be forwarded to the concerned institutions. Changes in your credit report cannot be made by CIBIL on its own. The bank from where you have availed a loan will verify your request and state if your complaints are valid or not.
3. If your complaint is valid, the corrected information will be sent to CIBIL by the bank. CIBIL will update the same and inform you on the change.
You do not have to pay money to CIBIL to resolve your issue. CIBIL usually takes 30 days to resolve your dispute.