Are You Checking Your Credit Report Regularly?
If you are thinking of applying for a loan, having a healthy credit score plays an important role to define your eligibility. Your creditworthiness is judged by lenders on the basis of your credit score. Usually, lenders extend loan services to the applicants who have a credit score of 700 or above, more so in case of unsecured loans.
If you have applied for a loan before, you must be aware of the importance of having a satisfactory credit score. However, if you are seeking a loan for the first time, keeping a close tab on your credit report is a must. Checking your credit report at regular intervals can help in avoiding potential mistakes which can hurt you later on. Also, if you examine your credit report regularly, you can get the errors (if any) corrected timely.
A credit report may contain various types of errors that can affect your credit rating negatively if avoided. While some discrepancies are not too big to create any major impact on your credit record like name, date of birth and address details; there are a few major errors that can ruin your creditworthiness such as – mention of the loan or Credit Card Details of another person on your credit report, inaccurate payment dates or amount, incorrect loan status or account details, etc. Make sure you check your credit report for these errors regularly.
Credit Bureaus (CIBIL, Equifax, Experian and Highmark) are only responsible for tallying details they receive from lenders and then supplying relevant credit reports on the basis of provided details. They cannot alter any information mentioned in your credit report. However, they can do some logical checks on their end and take decisions o whether to accept or reject certain data.
Generally, lenders enter details like borrower’s name and address manually, and make mistakes at the time of data entry. Also, when lender sends data to the bureau, it usually takes around a month to reflect on your credit report.
Ideally you should check your credit report at least once a year to identify errors and get them fixed accordingly. If there is an error in regards to your loan details, you can discuss the issue with the concerned lender. After verification, the lender will submit the updated information to the credit bureau who will update your credit report.
If your credit report reflects the presence of a loan that was not taken by you, you can approach the credit bureau. They will advise you on this matter and if the error occurred due to wrong data forwarded by the lender, the bureau will push lender to fix the issue within 45 days. In most cases, credit score increases after such errors are rectified. When this happens, you can avail a loan easily.
If you are seeking a loan anytime in the near future, start examining your credit report regularly and if you find any error in the same, get it rectified before applying for a loan.
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