Your CIBIL report is an essential tool that lenders use to evaluate your creditworthiness. It is a record of your credit history that provides a snapshot of your credit behavior, including your borrowing and repayment patterns. However, there are several things that can go wrong with your CIBIL report, which can negatively impact your credit score and your ability to get credit in the future.
Here are some of the most common things that can go wrong with your CIBIL report:
Errors in Personal Information
One of the most common mistakes that can occur on a CIBIL report is inaccurate personal information, such as incorrect name, address, or date of birth. These errors can arise due to mistakes made by the lender or credit bureau. It’s essential to review your CIBIL report regularly and check for any discrepancies.
Incorrect Account Information
Another common error on a CIBIL report is incorrect account information. This can include an incorrect account status, incorrect account balance, or an account that doesn’t belong to you. These errors can negatively impact your credit score, so it’s essential to check your CIBIL report for any inaccuracies.
Inaccurate Credit Inquiries
A credit inquiry occurs when a lender or creditor pulls your credit report. If you apply for credit and are denied, it can result in multiple inquiries on your report. However, if you didn’t authorize the inquiry or if it was made in error, it can negatively impact your credit score. It’s essential to keep track of your credit inquiries and dispute any unauthorized inquiries.
Duplicate Accounts
Duplicate accounts can appear on your CIBIL report if the same account is reported multiple times by different lenders or if the same account is reported under different names. These errors can inflate your credit utilization ratio, which can negatively impact your credit score.
Fraudulent Accounts
Fraudulent accounts can appear on your CIBIL report if someone opens an account in your name without your knowledge or consent. These accounts can negatively impact your credit score and make it challenging to obtain credit in the future.
To prevent these issues from happening, it’s crucial to review your CIBIL report regularly and dispute any errors or inaccuracies. You can obtain a free copy of your CIBIL report once a year from each of the four credit bureaus in India, which include CIBIL, Experian, Equifax, and CRIF High Mark. By staying vigilant and monitoring your credit report, you can ensure that your credit score accurately reflects your credit behavior and prevent any surprises when you apply for credit.
