Credit Report Checklist
Keeping a track of records for every individual seems like a tedious task. It becomes very difficult to match names, date of birth, contact number, address, PAN card details, Passport number, Voter IDs etc of every individual. To overcome this problem, CIBIL has developed an algorithm to consider several fields before making a match before raising the credit report. But being said that, there may be some errors or mistakes done on the part of the lenders or identity theft lenders or identity theft, lack of updated information, errors in personal data etc. This all needs to be checked after getting your credit report. This will help you to ensure all your personal and financial information is complete and accurate. If in case, you discover some mistakes in your credit report, you should immediately contact your lender or any of the three credit bureaus to dispute errors on time. Below given is the checklist that you must need not miss while reading your credit report:
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Make sure there are no errors in reporting by the lender
You need to check your credit reports very frequently, especially when you are applying for any loan or credit card to know your current standing. Checking your reports from time to time will help you to know the possible errors which might have done by your lender while reporting your credit transactions. It will not only help you to spot errors on your report, but it will also enable you to avail the best terms on the credit product. This is what all you need to check while reading your credit report-
- The first thing you need to do is to read every section of your credit report carefully
- Now, check for the outstanding amount on your credit cards and loan. You might have cleared then but, it may not be updated on your report. If this happens, it means something is wrong that needs to be corrected on time as your credit score will be affected
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When you spot an error in your personal data, address or outstanding balance, immediately report it to the credit reporting bureau. And write a letter to the creditor who reported the wrong information. You can also raise a dispute with any of the three credit bureaus for correction
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Check for identity theft
Check for enquiries that are not made by you. For example, if there is a loan application reported in your credit report which has not been initiated by you, then you can be sure that it is a case of identity theft. What you need to look for while checking possible frauds are-
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Credit inquiries not made by you
- Loan accounts that were not initiated by you
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Credit inquiries not made by you
- Late payments or defaults that you did not make
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Wrong address and other identifying information
- Wrong contact number
If there is a case of identity theft, immediately report it to the credit bureau that issued the report and notify the lender immediately.
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Check your account information
Most of the information in your credit report is your account information. While reading your credit report, you need to check the following things-
- Review all your accounts (loans and credit card account. They should be in your name
- Cross-check your credit limit, current balance and payment history
- Note that which of your accounts were inactive and closed
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Note all your missed or late payments and their negative remarks
- Check for the active loans and credit cards account and see if you can consolidate them
- Organise paperwork relating to your accounts and keep the details in order so that you can track them easily
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Dispute resolution process
Following given is the dispute resolution process that you need to take after you find errors in your credit report. These steps will help you to file a dispute with the credit bureau easily.
- Review your credit report carefully and identify the mistakes
- Contact your credit bureau to fix the errors in your credit report
- Review and submit the dispute form
- Wait for the credit bureau response to your credit report dispute
- Review the results of the investigation
- Check for updates in your credit report
The credit bureau generally takes 30-45 days to report the results back to you after receiving your dispute as they need to investigate and verify information with the furnisher. Make sure that you have all the proofs with you ready before you file a complaint.
So, by following the above-mentioned things, you will be able to keep a track on the information mentioned in your credit report which will, in turn, help you to take remedial actions on time by correcting what's wrong. Therefore, it is your prime responsibility to check your credit report and score consistently to stay away from errors that can hamper your credit score.
