What Should You Do If There Are Errors in Your Credit Report

2. Your credit report plays a critical role in determining your financial health. Whether you’re applying for a loan, credit card, or even renting an apartment, lenders often rely on your credit score and report to assess your credibility. But what happens when your report contains errors—like incorrect loan details, closed accounts shown as open, or even payments wrongly marked as overdue? Credit report mistakes are more common than most people think, and ignoring them can hurt your chances of getting credit or lead to higher interest rates. In this blog, we explain how to identify, report, and fix credit report errors in India, with insights drawn from industry best practices followed byDebt Nirvana, a trusted name in credit risk and receivables management.

3. Why Credit Report Errors Happen Credit bureaus like CIBIL, Equifax, Experian, and CRIF High Mark collect data from banks and financial institutions. Errors can arise due to: Incorrect reporting by lenders Identity confusion (similar names or PAN numbers) Technical mismatches or outdated information Clerical mistakes during data entry Even small errors—like a wrong balance or a closed loan marked active—can lower your credit score significantly.

4. Step 1: Get a Copy of Your Credit Report The first step is to obtain your full credit report from all four bureaus, as different lenders report to different agencies. You’re entitled to one free credit report per year from each bureau through their official websites. When you review the report, look for: Accounts that don’t belong to you Incorrect loan amounts or balances Delayed payment records that are false Duplicate or outdated entries Wrong personal details like PAN, address, or phone number Highlight anything that doesn’t match your actual records or recent transactions.

5. Step 2: Collect Supporting Evidence Before you raise a dispute, gather documents that prove the error. This may include: Bank statements Loan closure certificates Payment receipts Identity proof PAN or Aadhaar card Proper documentation strengthens your case and ensures faster resolution.

6. Step 3: Raise a Dispute With the Credit Bureau Once you’ve identified the error and have your documents ready, file a dispute with the relevant credit bureau. Most bureaus allow you to submit disputes online. You will need to: Log in to the bureau’s official website Navigate to the ‘Dispute Resolution’ or ‘Raise a Dispute’ section Select the inaccurate entry Submit the dispute form with supporting documents You’ll receive a dispute ID or reference number, which you should save for future tracking.

7. Step 4: Notify the Financial Institution as Well While the bureau investigates your claim, it’s also a good idea to contact the concerned bank or lender directly. Sometimes, the correction must be initiated from their end. Send an email or visit the branch with your documents and ask them to update their records with the bureau. Working on both ends—bureau and lender—helps accelerate the process.

8. Step 5: Follow Up Until Resolution By law, credit bureaus are required to resolve disputes within 30 days. Once the error is verified, your credit report will be updated, and you’ll be notified. If the bureau doesn’t resolve your issue or refuses correction without explanation, you can escalate the matter to the Credit Information Companies (Regulation) Act authority (CICRA) or the Banking Ombudsman. You can also seek help from professionals who specialize in credit report corrections and dispute resolution. Firms like Debt Nirvana offer assistance with credit report reviews, dispute handling, and improvement strategies to ensure your report reflects accurate information.

9. How Do Credit Report Errors Affect You? Lower Credit Score: Even one incorrect missed payment entry can drop your score by 50–100 points. Loan Rejections: Lenders may reject your loan or credit card applications due to faulty data. Higher Interest Rates: A lower score often leads to less favorable loan terms. Loss of Trust: Financial institutions may consider you high-risk, affecting future transactions.

10. Tips to Avoid Future Mistakes on Your Credit Report Check your credit report from all bureaus once every 6–12 months. Close credit cards or loans officially and request closure letters. Always pay EMIs and credit card bills on time. Update your contact and personal details with your lenders. Monitor all joint accounts or co-signed loans regularly.

11. Final Thoughts Mistakes on your credit report can be damaging—but they’re also fixable. By reviewing your report regularly, reporting errors promptly, and working with experienced professionals offering credit report services in India, you can safeguard your financial credibility. Taking control of your credit health ensures smoother access to loans, better terms, and long-term financial security.

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