Reviewing your credit report will help spot the errors in your report. You must ensure that you identify the deficiencies in order to be able to eliminate them on a timely basis. Take a tour through the process of identifying and rectifying the errors in your credit records.
There are three parts to fixing the error:
Identify the error and elaborate why it is an error.
Attach documents or state facts that back your claim.
Specify the action expected: Correction or deletion.
The first step is to connect with the concerned Credit Rating Agency (credit bureau); you will get the contact details and the process to dispute and/or report an error on your Credit Report. You can register your dispute via telephone or on the website of the bureau or by the email address provided over the website. You must ensure you have a receipt of delivery or reference number for the request you’ve made. Include your contact details along with the order details to ensure the receiver can revert back to you without any hassle.
Spell out and explain the error in precise details and attach the necessary documents (if any) to highlight that it indeed is an error. For instance, if you have cancelled a credit card and it still shows an outstanding amount on your report, attach a copy of the mail from the credit card company stating the confirmation of the closure of your account.
The next step is to connect with the financial institution from which the erroneous record has been generated. Send the copy of the same in detail to the financial institution, that you sent to the credit bureau. You must request the institution to rectify the errors within their records and with the credit bureau.
In case you believe there is fraud of any kind, place a relevant alert on your account and report it to the authorities at the credit bureau and the financial institution.
Once your request is processed you shall receive official communication from the regulatory authorities. Also, they will ensure to provide the necessary information and steps they would adopt in order to resolve the issue. If you do not receive the reply until 45 days you must escalate the matter. If you have raised a dispute, the loan providers who request for your report during this time, are duly notified of the same so that your credit score is evaluated accordingly.
After submitting the dispute, your claim will get investigated for authentication and correction. You will be sent a findings report and a corrected credit report. Also, you must crosscheck the reports that your financial institution would be submitting to ensure that the deficiencies are rectified. It is your responsibility to ensure that the credit report is renewed and corrected. In case the update does not feature after several months, escalate the matter again.
As a financially wise individual, you must ensure that your credit report is an error free one. It is your responsibility to keep timely checks and escalate the same if any errors are spotted. A seemingly insignificant error in your credit report could bring down your credit score significantly and impact your creditworthiness in the market. It will reduce your chances of approval on a credit card and/or Personal Loan. The rectification process may seem time-consuming but it is essential to keep your credit score healthy and eliminate errors in credit report.