In today’s financial world, your credit report is more than just a record – it is your financial identity. Whether you are applying for a home loan, personal loan, car loan, or a credit card, banks and financial institutions first look at your credit score and credit history. However, if there is any incorrect information in your credit report, it can seriously damage your chances of approval.
Many people wonder why their CIBIL score remains stuck below 750 despite paying EMIs on time and clearing credit card bills regularly. In most cases, the real reason lies in errors present in the credit report that go unnoticed for years.
Credit report mistakes are more common than you think. Some of the frequent errors include:
A loan shown as active even after it is closed
Incorrect late payment records
Someone else’s loan or credit card linked to your profile
Duplicate entries of the same loan
Wrong personal details such as address, phone number, or date of birth
These errors can reduce your credit score and make banks view you as a risky borrower.
Incorrect information in your credit report can lead to:
Loan rejection
Higher interest rates
Lower credit card limits
Delays in approval
Difficulty in getting new financial products
In short, even a small mistake can create big financial problems.
You are entitled to check your credit report free of cost up to four times a year. You can visit the official websites of:
CIBIL
Experian
Equifax
CRIF High Mark
Download the report and carefully review each entry, especially loan status, payment history, and personal information.
If you find any discrepancy, follow these simple steps:
Visit the official website of the concerned credit bureau
Click on the Dispute or Raise a Complaint option
Select the incorrect entry and provide correct details
Upload supporting documents such as loan closure letter, bank statement, or payment proof
Submit the request and note the dispute reference number
The credit bureau will then verify the information with the bank or NBFC.
The verification process usually takes 25 to 30 days. Once confirmed, the credit bureau updates your report and sends you the revised version. If you are not satisfied, you can raise another dispute.
As per regulations, no credit bureau can change data without proper verification. If the mistake is on the bank’s part, they are legally required to correct it. In case of unresolved issues, you can approach the RBI or consumer forum.
Financial experts strongly recommend that everyone should check their credit report at least once a year. This helps identify mistakes early and take corrective action before applying for any major loan.
A credit score of 750 or above offers several benefits:
Faster loan approvals
Lower interest rates
Higher credit limits
Better trust from banks and lenders
A single wrong entry can damage years of disciplined financial behavior. That is why regularly monitoring your credit report and correcting errors on time is essential. Staying alert today can save you from major financial stress tomorrow.
