How to Dispute Errors in your Credit Report?

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 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, is a term used to describe the number of days that have elapsed since the due date on an account for a certain month. Lenders may view your DPD negatively if it displays anything other than "000" or "XXX," which indicates that you have missed a payment or payments. If you have been making on-time payments and you find errors in your DPD, you should get them corrected immediately, since neglecting to do so may lead to the loan being denied.
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 - It is possible that some credit card accounts or loans have already been cancelled (paid off in full), but the lending business hasn't notified them to CIBIL. Some of the open accounts on your CIBIL report that are not yours can have ownership errors. These could be the result of incompetent administration or fraudulent use. Mislabeling an account as "written off" or "settled" can potentially negatively impact your credit report and the way that lenders view you.
5. Over-due for paid accounts - Even if you have made all your previous repayments on time, your CIBIL report may still reflect an outstanding balance already paid in full or payment history defaults.

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

• Step 1 - 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.

• Step 2: Process

  Following the submission of your online complaint form, the credit bureau will contact the bank to confirm the dispute. It should be mentioned that credit bureaus are not able to independently alter credit reports.

• 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 notified about the result once it is resolved via an email.

How to Dispute Errors in your Credit Report?

Your report is inaccurate, even though you included supporting documentation. It is crucial that you have all the documentation for the information you supplied. If you choose to file a complaint via letter, the credit bureau's addresses are shown below:

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

What occurs following a dispute with a Credit Reporting Agency?

• The credit agency has thirty days to look into your dispute, regardless of the method you use to file it. If the credit bureau determines that your request is "frivolous" or "irrelevant," they will terminate the investigation but will still require an explanation from you. Sometimes you'll need to provide more evidence to support your claims.
• The credit bureau will forward to that firm all the documentation you provided proving it was them who first reported the disputed information. After that, this company must investigate and report back to the credit bureau with its conclusions. If the company acknowledges that the information it provided was false, it is required to tell the three major credit bureaus so that they can correct the information in your credit file.
• 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.

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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.

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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.