Credit Report Alert: 8 Common Errors That Are Hurting Your Score

Your credit report is the single most important document defining your financial future.

Overview

Your credit report is the single most important document defining your financial future. It records every loan, credit card, and repayment. It’s the foundation for your credit score.
However, errors are common. Mistakes made by banks or credit bureaus can lower your score, hike your interest rates, or even block you from getting new credit—costing you greatly and postponing your goals.
It is your job to be on the lookout!

Check Your Report Now:

Checking your own credit report is safe and does not hurt your score. You are entitled to a free copy once per calendar year from RBI-approved credit bureaus. If you find an error, you can dispute it for free. So, always review your report thoroughly.

8 Critical Errors to Look Out For:

Identity Errors: Mismatched name, address, or PAN details put you at a serious risk of fraud; report mix-ups immediately to the bank, bureau, and police.
Inaccurate Balances: Outstanding loan balances that are reported as higher than actual. This makes lenders assume you have higher debt, reducing your new credit eligibility.
Incorrect Limits: A credit card limit is reported lower than the true limit. This immediately raises your Credit Utilisation Ratio (CUR), damaging your score.
Duplicate Debt: If the same loan or credit card account is reported twice, it wrongly inflates your perceived debt, limiting future credit opportunities.
Unreported Closure: If closed accounts are still shown as “Open”, it inflates your available credit lines, impacting loan eligibility.
Out-of-Date Records: If the “Last Reported Date” is older than 60 days for an open account, it prevents lenders from getting an accurate picture of your status.
Unknown Accounts: Report any credit account you are unaware of immediately. This is often due to bank errors or fraud.
Wrong Delinquency: Any accounts incorrectly marked as “Overdue” or “Delinquent” over 90 days can result in an NPA (Non-Performing Asset) tag, causing a major score drop.

Your Action Plan

Review Regularly: Obtain your free credit report copy annually.
Document Everything: Gather documentary proof (e.g. closure letters, repayment receipts, etc.) for any errors you find.
Lodge a Dispute: Report errors to the relevant credit bureau and contact the financial institution immediately to have the data rectified.

Conclusion

Your credit report is your financial fingerprint. By staying vigilant by proactively checking for these common errors to ensure your credit score accurately reflects your responsible financial behavior.