How to rectify errors in a credit report to boost your credit score? | Mint

Regularly checking your credit score and credit report is always a good idea. It will help you stay updated with all the information related to your loans and credit cards. It will also help you identify any incorrect information or wrong entries in your credit report, which can affect your credit score negatively. 

What if you come across any incorrect information or wrong entries in your credit report? In this article, we will discuss the process of rectifying such errors or removing wrong entries from your credit report.

Types of errors that can appear in a credit report

Before we understand the process of rectifying errors in a credit report, let us understand what types of errors can appear in a credit report. Some of these include the following.

Account information

The account information in a credit report is related to all your loans and credit cards. The information is divided into open and closed loans and credit card accounts. The incorrect information or error can be related to the current balance, amount overdue, last payment date, etc. It may happen that you have made a payment and it is not reflecting. In such cases, if the payment has been made recently, you may wait for a few days. If the mismatch persists, raise the matter with the bank directly or CIC to rectify it.

Banks report data to credit information companies (CICs) on a monthly basis. As per RBI guidelines, from 1st January 2025, the data reporting is on a fortnightly basis.

For example, it may happen that you had given a request for the closure of a credit card, but the report is still showing the status as ‘open’. Taking another example, it may happen that you see a loan or a credit card issued in your name, which you have not applied for. You can raise the dispute to get it removed from your credit report.

Personal information

The personal information includes details like name, date of birth, gender, identification type and number (PAN, Voter ID Card Number, etc.), ID issue date and expiry date, residential address, etc. You must check if there are any errors like data is incorrect, data is missing, spelling mistakes, etc.

Contact information

The contact information includes details like telephone number, email ID, etc. Check if the details are updated correctly.

Enquiry information

The enquiry information will include which bank has accessed your credit report for any credit application you have made. For example, if you have applied for a credit card, the enquiry details section will include which bank accessed your credit report, the enquiry date, and the enquiry purpose (credit card).

If you come across any enquiry for a credit product you have not applied for, you must take it up with the bank that has accessed your credit report.

Raising a dispute

In the earlier section, we understood what types of errors can reflect in a credit report. Now, let us look at the process of raising a dispute. There is no fee for raising a dispute with the credit information company (CIC). The dispute can be raised directly with the bank also.

Suppose you have identified an error in your CIBIL report. Visit the CIBIL website (www.cibil.com). On the home page, you will see the ‘Consumer Grievance’ tab. Under this tab, click on the ‘Consumer Dispute Resolution’ link. On this page, you will get information on the process of raising a dispute.

1. You can raise a dispute by logging into your CIBIL account. If you are not registered, you must first register. Registration is free.
2. Login to your dashboard and click on the ‘CIBIL Report’ link.
3. Check your report. As per RBI guidelines, CICs have to provide a free credit report to customers once in a calendar year. If you come across any discrepancy, click on the ‘Raise a Dispute’ link at the bottom of the page. You will be taken to the ‘CIBIL Dispute Center’ section.
4. Click on the ‘Access Dispute Form’ button. Select the part of the report you want to dispute: Account section, personal information, employment information, credit application history, contact information, or other information.
5. Come to the ‘My query is not listed here’ section and click the ‘Find Solution’ link. Click on the ‘Raise a Dispute’ button.
6. You will be shown the details of the section you want to dispute. For example, if you choose ‘Account Section’, it will display the details of all your loans and credit cards. Select the loan/credit card. It will display the details of that loan/credit card. Choose the information on that particular loan/credit card that you want to dispute. For example, if you have closed a credit card, and it is still showing as open, select the card closure date in the ‘Date Closed’ field and click on the ‘Continue’ button.
7. On the next page, you can review the dispute details and submit it. Click on the ‘Proceed to Next Step’ button.
8. On the next page, fill in the required bank account details and click ‘Confirm and Submit Disputes’.
9. A Dispute ID will be generated. You will receive an email with the Dispute ID and other details. You can track the progress of the dispute with the Dispute ID.

Dispute resolution process

The information displayed in the credit report is based on the information provided or submitted by the bank(s) to the credit information company (CIC). When you raise a dispute with the CIC, the CIC will contact the concerned bank. The bank will investigate the dispute. If the bank accepts the discrepancy, it will provide the rectified data to the CIC, and the CIC will update your credit report. If the bank rejects the dispute, the credit report will not be updated, and you will be notified.

Usually, the turnaround time for resolving a dispute is 30 days. It is important to note that the CIC, on its own, cannot add, delete, or modify any credit record without confirmation from the concerned bank. For a credit report update, you can raise the dispute directly with the concerned bank also instead of the CIC. If you are not satisfied with the bank resolution, you can approach the RBI Ombudsman and raise a complaint.

It is important for you to check your credit report regularly, maybe once in a quarter. It helps you stay updated with your loan and credit card records. Discrepancies in a credit report are rare. However, if you spot a discrepancy, you can raise a dispute with the CIC or the bank directly and get it resolved.

Gopal Gidwani is a freelance personal finance content writer with 15+ years of experience. He can be reached at LinkedIn.