What factors may lower your credit score? Get'em corrected

Banks consider your credit score before giving a loan. Without a good credit report, chances of getting the loan will be slim. All necessary care has to be taken to keep a good credit score and get corrections carried out by a credit bureau, if necessary. A higher credit score will yield many benefits. Find out what they are.

Hyderabad: Banks take a keen look at your credit score before considering your loan application. If your credit report is not impressive, chances of getting the loan will be slim. All necessary care has to be taken to keep good credit score. Sometimes, it may be affected even if you are paying installments regularly. Get such mistakes corrected by a credit bureau. A higher credit score will yield many benefits.

The banks offer interest concession of 50 basis points to those with good credit score. Even if the concession is less than half a percent on long term loans, the burden will come down significantly. In this context, credit report and score are becoming crucial. Many details like loans, how they are being paid, credit card bills, inquiries made for loans, number of bank accounts are visible in the credit report.

While checking the report first check if your name, PAN, mobile, e-mail, bank account details are correct or not. Details of your canceled accounts and settled debts will also be shown in it. So, double check these details. All of them are not related to you. Check if there are any mistakes.

There are minor issues that can lower your credit score. A loan you never took, loan inquiries in your name, showing 'default' despite paying EMIs on time, discrepancies in EMI amount, in address and name. Such discrepancies should be reported to the credit bureau in writing. Now more than one credit bureau provides a score.

Banks usually look at the CIBIL score of a borrower. In addition, details registered in other bureaus should also be checked. The credit bureaus will make changes to your credit report if evidence is provided when errors are found. Sometimes you have to contact the bank or credit card company to get these corrections.

Information such as EMI, credit card bill payment can be corrected only at the level of banks. If you want to file a complaint, there is an arrangement on the website of respective credit bureaus. It usually takes 30-45 days to correct these discrepancies. If you are not satisfied with the solution, you can file another complaint and pursue the matter till your grievance is resolved.

All borrowers should check their credit report and score regularly. Some companies offer monthly reports for free. Checking your report does not affect credit score. Regular monitoring allows you to report and correct errors to lenders as soon as they occur. If your details are found to be correct, they will immediately inform the credit bureaus.

Cyber crimes are on the rise with fraudsters stealing others' identities to take credit cards and loans. Borrowers need to remain vigilant. Credit report errors cannot be stopped. But any delay in correcting them will eventually lead to financial loss and needless stress.