Correction in a credit report can be initiated by following the crucial steps outlined below.
Review your credit report card at least every twelve months. Have information on your ongoing debts and previously closed ones while checking the details. Cross-check the outstanding balance, the number of outstanding debts shown on the report, and the KYC information. Make a note of any discrepancies you notice so that you can raise disputes easily.
Every year, many credit bureaus provide users with one to two free credit checks. Remember, even if you have premium access to the credit bureau website, you should never check your score every next day. Such actions will place you in the category of a hungry borrower, further deteriorating your credit report.
After determining the errors, visit the respective bureau website through which you have downloaded the report. Log in using your credentials and navigate to the "Raise a Dispute" link. After clicking on that link, your screen will display the online dispute form. Fill it out with all the necessary information, like basic details and the list of errors you wish to rectify.
The next step requires you to upload documents proving the legitimacy of the dispute you are raising. For example, if you are submitting a dispute request for an unclosed credit account, you must include the No Objection Certificate (NOC) that you received from your lender after making the last EMI payment.
Similarly, if the rectification request is for your name or address, you will be required to submit KYC documents such as your Aadhar card or any other valid identity proof.
The credit bureau will then cross-check the information and documents you have provided with what is published on their website. The investigation usually takes 30-45 days, after which the bureau will send you the new report.
Examine the report to see if any changes have been made. And, if they did not make the changes, then look into the reason the bureau gave you. If the changes are still inaccurate, you can contact the concerned bureau via email.
Once the process is complete, go to the credit bureau's website and download the updated report. However, begin this process after receiving a rectification update from the bureau.
Also Read: Procedure to check credit score by PAN card
An erroneous credit report has several negative repercussions. The first is that even after you have closed your loan, you are still unable to obtain approval for future borrowings, such as a personal loan. If you have a credit card, your lender may reduce your total credit limit. Hence, as soon as you notice a mistake on your credit report, you must attempt to correct it.
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