Friday, 15 December 2017

Which is the fastest way to Fix a credit report error

A credit report is a summary of your financial behaviour and the manner in which you deal with your loan obligations. These reports are maintained by three credit bureaus based on the information reported to them by the lending institutions. Because of the sheer volume of data being handled errors in the report are quite common. These errors can be a reason for a low CIBIL score. The onus is on each individual to check the report on a regular basis and ensure that the information recorded in these reports is accurate. Suppose you are about to apply for home loan, and you check your CIBIL report and score to make sure that your financial records are in order. What would you do if you found mistakes on your credit report that resulted in a low CIBIL score? Of course, you will need to act fast and rectify the mistakes so as to improve CIBIL score. After all, your CIBIL score affects your house loan approval as well as the rate of interest on that loan which will have a long term effect on your finances.
So let’s find out what is the fastest way of fixing errors on the credit report.
If you find a mistake on your credit report, you have the right to dispute this false information with the bureau. You can do so via mail or telephone but you will get the fastest results if you initiate a dispute online. You may either fill the online dispute resolution form provided on the bureau’s website or send a dispute letter via email. Provide the basic details like your name, address and contact information and then specify the items that you find erroneous. It is better to attach a copy of the credit report and highlight the items that you wish to dispute. Provide the factual data in a clear and concise manner and attach necessary documents that can verify your claim. Legitimate proof of documents that support your claim can expedite the process. If you do not provide all the key information needed to verify the mistake in one go, the bureau will have to contact you for additional information and clarification. This will delay the whole process.
Get a formal confirmation that your request is received and keep this information for future reference. Keep copies of every correspondence that you send to the bureau including follow up mails and the response you get. These records will come in handy if you do not get timely resolution and you wish to escalate the dispute.
 Another way you can work towards a faster resolution is to contact the organization that reported the erroneous information to the bureau directly. Include copies of documents to explain why you are disputing the information recorded in the credit report. If the documents submitted with the complaint are enough to verify and complete the investigation then the lender will just notify the changes in your account information to the credit bureau. The bureau will update the reports accordingly.

 If you have filed the dispute with the credit bureau, it will review the documents to verify the details. If the mistakes relate to personal information or enquiries, it rectifies the mistake itself. Otherwise, the bureau contacts the furnisher of the information to investigate the dispute and report back the findings. The entire investigation process should be completed within 30 days. In most cases, the disputes are resolved within a span of 2 weeks. But if you do not get a response within a month’s time then you need to follow up with the bureau. Escalate the complaint if necessary. Be persistent and make sure you get those errors off the report. If you had a low CIBIL score due to the errors in the report, then rectification of these mistakes will help improve CIBIL score.

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