While applying for a loan, you come in for a shock, there are a large number of errors in your credit report; worse you discover a large debt which you haven’t taken. Realising this may prove to be a major hindrance when obtaining the loan, what do you do? The answer to this question is simple, take the issue up with the lender. It is necessary to look at your credit report carefully every now and then and rectify inconsistencies, if any. Failing to do so can lead to a scenario wherein you check your report during the time of a loan application and have to correct any mistakes immediately in order to obtain credit, which might not be possible.
Rectifying errors in credit report
Inconsistencies in the report could be present in various forms. They can be of a very insignificant nature, such as mistakes in the case of your name, gender, date of birth, etc, which may not really affect your report. More serious errors could be present in the form of more debt being present than you have taken on, which can lead to a reduction in your credit score. Mistakes in your account and payment status, however can prove to be very detrimental and in some extreme cases, be significant enough to cause you to be blacklisted by banks. Here’s a look at different types of errors and how to correct them.
Incorrect information from loan provider: If you feel that details regarding a loan taken by you have been inaccurately reported, you can always take the issue up with the loan provider. You will be required to submit the necessary documents to prove your claim. The loan provider will then review the data you provide, and submit the amended data to the credit bureau, which will then rectify the report.
Unaccounted debt on your report: If there is a debt recorded on your report that you have not availed you can directly contact the bureau to rectify this. You can fill an online dispute resolution form with the credit bureau and submit it with the required documents to prove that you have not availed of such debt, following which they will rectify your report. In case the error is due to incorrect data submitted by your loan provider, the credit bureau will take up the issue with the lender. Banks are legally required to formally resolve a dispute within a period of 45 days of the issue being raised with them.
Incorrect loan related details: Not all inconsistencies can be so easily resolved. Some inconsistencies such as the status of your loan, control number, date of loan payment, inception and closure, etc can provide to be complicated to resolve for you. If you are not satisfied by the way your complaint is being resolved or the final decision taken by the bank/agency to resolve your complaint, you can either approach the bank/agency again to reach a solution which is agreeable to you. , you can choose to approach a consumer court.
Therefore, it can be wise to regularly check and update your credit report in order to avoid errors, or failing which, be able to rectify them as soon as possible to avoid future problems.


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