Credit bureaus in the country collect individual data and prepare a credit report. They also calculate the credit score using their proprietary algorithm. However, there could be errors in your credit report that can hamper your chances of getting a loan approval.

Dispute on Your Credit Report

The errors in your credit report can range from incorrect personal information to wrong credit accounts. You should rectify the errors in your credit report at the earliest to avoid further problems. Let’s take a look at some of the common errors in your credit report.

1. Incorrect personal details - Once a month, you should review your CIBIL report for any typographical or clerical problems pertaining to your name, residence, age, date of birth, and PAN Card information. Another frequent mistake that harms the credit score is having multiple accounts in the applicant's name.
2. Days Past Dues (DPD) - Days Past Due, or DPD, refers to how many days have passed since an account's due payment was supposed to have been made in a particular month. If your DPD shows anything other than "000" or "XXX," it signifies you have missed a payment or payments, which lenders can read unfavourably. If you have been paying on time and discover inaccuracies in your DPD, you should have them fixed right away because failing to do so could result in the loan being rejected.
3. Outstanding loans/incorrect balance - To accurately grasp the credit facilities that have been made available, the actual amount due and the outstanding balance must match. Since it is used to determine credit scores, information on unpaid loans should be accurate. To prevent a drop in the CIBIL score or the rejection of the loan application, any of these mistakes should be reported right away.
4. Credit accounts error - There could be loans or credit card accounts that have already been closed (i.e., fully paid off) but haven't been reported to CIBIL by the lending company. There may be ownership mistakes with some of the open accounts included in your CIBIL report that are truly not yours. These might represent fraudulent use or the outcome of administrative mistakes. Incorrectly labelling an account as "written off" or "settled" can also have a detrimental effect on your credit score and how lenders perceive you.
5. Over-due for paid accounts - Even if you have made all of your previous repayments on time, your CIBIL report may still reflect an outstanding balance that has already been paid in full or payment history defaults.

Here’s how you can dispute errors in your credit report.

• Fill the form

  You can raise an online dispute with the credit bureau to dispute errors. Visit the dispute resolution section and fill the form to fix the error. It should be noted that you will need to submit the nine-digit number provided on your credit report which contains the disputed details.

• Process

  Once you submit your online complaint form, the credit bureau will verify the dispute by approaching the bank. It should be noted that credit bureaus cannot make changes in the credit report on their own.

• Dispute resolving period

  Generally, it takes around 30 days for your dispute to get resolved. As per laws, banks have to come up with a formal resolution for a dispute within 45 days of the issue being raised. You will be noticed about the result once it is resolved via an email.

How to Dispute Errors in your Credit Report?

your report is wrong, including submitting documents to support your claims. It is important you have all the records for the data you have sent. Given below are the addresses of the credit bureau if you decide to send your complaint by mail:

Equifax

Equifax Information Services LLC

P.O. Box 740256

Atlanta, GA 30348

Experian

Experian

P.O. Box 4500

Allen, TX 75013

Tranunion

TransUnion LLC Consumer Dispute Center

P.O. Box 2000

Chester, PA 19016

Process to send your mail to Credit Bureau in case of any error in your credit score

Given below are the steps to follow when you send in a mail to Credit Bureau to dispute any errors in your credit score:

• Make a request to the credit bureau to have any erroneous or missing information corrected or removed.
• It ought to include your entire name and address.
• a list of all the mistakes you would like fixed and a justification for each one.
• copies of the paperwork you need to support your request; please do not send originals.
• A copy of your credit report with the errors you want fixed circled should be included.
• Send your letter using certified mail and purchase a "return receipt" so that the credit bureau has a copy of it on file.
• Keep copies of every document you submit. Keep in mind that credit bureaus also accept phone or online disputes:
• Equifax: (866) 349-5191
• Experian: (888) 397-3742
• Transunion: (800) 916-8800

• Whatever method you use to file your dispute, the credit bureau has thirty days to look into it. Should the credit bureau consider your request to be "frivolous" or "irrelevant," they will stop the inquiry but will still need to give you an explanation. You might occasionally need to offer further proof to back up your assertions.
• All of the proof you gave of the business that first reported the disputed information will be forwarded by the credit bureau to that organisation. After then, this business needs to look into it and get back to the credit bureau with its findings. The company must notify all three major credit bureaus so that they can update the information in your credit file if it admits that the information it reported was inaccurate.
• If the dispute leads to a correction, you are entitled to a free copy of your credit report and should be notified in writing of the investigation's findings. Remember that this is not the same as your free yearly credit report.
• Furthermore, at your request, the credit bureau is required to notify all individuals who have accessed your credit report during the last six months of the correction(s). If you request it, the credit bureau must also notify any parties to whom your credit report was utilised for employment reasons within the last two years of the correction.

In case your dispute doesn’t get resolved

In the event your dispute doesn’t get resolved then you will have to request the statement of dispute to be added to your credit file reports in future. You can also ask the credit bureau to provide the statement to anyone who has a copy of your credit report. However, you might be charged a fee for the same.

Things to Remember

It should be noted that it takes time for issues related to incorrect outstanding amount, loan account status, date of payment to get resolved. Meanwhile, disputes related to personal information, data aggregation can be corrected in a much easier way. Once the dispute is resolved, you should check your credit report to see if the changes have been made.



FAQs on How to Dispute Errors in your Credit Report

1. What is a dispute?

If there is an error in your credit report related to personal information or credit accounts, you can raise a dispute with the respective credit bureau to resolve it.

2. Can I raise multiple disputes in a single dispute resolution form?

Yes. You can raise multiple disputes in your credit report via a single dispute resolution form.

3. Are they any charges to resolve a dispute?

No. You can raise and resolve a dispute without any charges. Credit bureaus will not levy any charges for disputing errors.

4. Can I dispute my credit score?

No. You can’t dispute your credit score. Your score is based on your credit report, therefore changes in your credit report will automatically change your score.

5. Can I change the control number and report date using the dispute resolution procedure?

No. Enquiry date, report date, and control number cannot be changed using the dispute resolution procedure.

It is important to check your credit report from time-to-time even if your credit history is good. You are entitled to get one free credit report in a calendar year, as per a mandate by the Reserve Bank of India (RBI). At present, there are four credit bureaus in the country therefore you can get four credit reports in a calendar year. You can check your credit report for free on BankBazaar.

Read More on CIBIL

• How to improve your CIBIL Credit Score
• Major Factors That Affect Your CIBIL Score
• Missing a Single Payment Can Affect Your CIBIL Score
• Top CIBIL score improvement factors
• Impact of Late Payment on CIBIL Score
• How to Increase Cibil Score
• How Can Credit Score Affect Your Daily Life



Know More About CIBIL

TransUnion CIBIL is one of the leading credit information companies in India. The company maintains one of the largest collections of consumer credit information in the world. CIBIL Score plays a key role in the lives of consumers. Banks and other lenders check the CIBIL Score of the applicants before approving their loan or credit card application. Consumers can visit the official website of CIBIL to check their CIBIL Score and Report. CHECK YOUR CIBIL SCORE now.