1. Why Reviewing Your Credit Report Matters
- Financial institutions scrutinize your credit report when you apply for loans or credit cards. This includes details about your credit accounts, repayment history, and any defaults or late payments.
- Your credit report impacts the interest rates on loans and provides insights into your overall credit eligibility. Regularly reviewing it helps ensure your credit score is accurate and reflects your financial behavior.
2. Key Sections to Review on Your Credit Report
- Credit Accounts: Check details like loan type, sanctioned amount, current balance, overdue amounts, and payment history. Report any discrepancies to the credit bureau immediately.
- Repayment History: This section shows how consistently you repay EMIs or credit card dues. Note that credit history is usually reported for up to 7 years, though this can vary.
- Personal Details: Verify your KYC details, including name, date of birth, IDs, and contact information, are accurate.
- Credit Report Inquiries: Monitor hard inquiries made by lenders when applying for credit or requesting increases. Keep track of who has checked your credit over the past 24 months.
- Credit Utilization Ratio (CUR): This ratio compares your credit usage to your available credit. Avoid maxing out your credit cards to maintain a healthy credit score.
3. Steps to Correct Errors on Your Credit Report
- Identify Inaccuracies: Thoroughly review your credit report to spot any errors.
- Raise a Dispute: Contact the credit bureau to dispute inaccuracies. Provide detailed information about the discrepancies.
- Gather Supporting Documents: Collect documents such as bank statements and payment receipts to support your dispute.
- Monitor and Follow Up: Regularly check your credit report to stay informed and ensure errors are corrected.