Nearly half of Indians have never reviewed their credit scores, and many still believe checking CIBIL score will reduce score. Such misconceptions leave inconsistencies unnoticed, quietly eroding personal creditworthiness. Wrong data, outdated accounts, and misreported payments distort reliability and can increase borrowing costs if left uncorrected.
What is a Credit Score
A credit score reflects financial dependability through a single numeric measure analysed by past borrowing behaviour. It draws information from the credit report, a record maintained by registered bureaus tracking loans, repayments, and credit card performance.
In India, authorised agencies such as TransUnion CIBIL, Experian, Equifax, and CRIF High Mark compile these reports. Among them, the CIBIL score remains the most widely recognised benchmark used by lenders to evaluate repayment discipline and overall stability.
Common Credit Score Errors and How to Fix Them
Even a minor discrepancy in a credit report can change how lenders perceive financial credibility. Spotting them early keeps your financial profile healthy.
Incorrect Personal Information
Details such as name, PAN, or address may be mismatched due to reporting inconsistencies. If Neha Kapoor’s record lists Neha Khanna’s PAN, her report could wrongly include another person’s loan.
Correction method: Submit a rectification request with the credit bureau and attach proof of identity. Notify your bank so that all systems reflect the same verified data.
Duplicate or Wrong Account Entries
Settled or closed loans sometimes remain tagged as active, overstating total borrowings. For example, an education loan cleared in 2023 may still appear open, lowering the reliability score.
Correction method: Ask your lender for a written closure confirmation and forward it to the bureau through its online dispute facility.
Misreported Payment Record
Occasionally, punctual EMIs are reported as delayed. If your March payment was auto-deducted yet listed overdue, the entry distorts your repayment consistency.
Correction method: Share supporting documents, like bank statements or payment proofs, with both the bureau and lender to ensure amendment.
Inaccurate Credit Limit or Balance
When an incorrect limit or inflated balance is recorded, your utilisation ratio appears excessive. A ₹1.5 lakh card limit shown as ₹1 lakh suggests higher debt than reality.
Correction method: Request official verification from the issuer and upload it while submitting a dispute online.
Loan or card applications you never initiated may indicate clerical error or identity misuse. Multiple such checks can subtly depress your rating. But will checking CIBIL score reduce score? No, when you check your own score, it’s known as a soft enquiry and has no impact at all.
Applications you never made can surface rapidly under the new RBI rule, as lenders now report twice each month. For example, Aman sees three loan checks within days and his rating dips sooner than before.
Correction method: Raise an immediate dispute with the bureau and alert your bank to investigate and remove the enquiries. Monitor reports after the 15th and month-end to confirm clean updates.
The Impact of these Errors
Even a slight unfavourable CIBIL score can alter how lenders view your trustworthiness. Its effect extends across borrowing, spending, and personal credibility.
Restricted borrowing access: When errors make your report appear risky, banks may hesitate to offer fresh loans or credit cards. Even routine approvals can face delays or rejections because your profile seems unreliable.
Higher cost of credit: A lowered CIBIL score, even by a few points, invites steeper lending terms. Over months, this subtle change translates into heavier repayments and costlier debt servicing.
Shrinking credit capacity: If a wrong limit or outdated balance appears, available spending room narrows. The resulting strain on utilisation ratios can make issuers reconsider future lending exposure.
Barriers in tenancy approvals: Property managers and agencies now rely heavily on credit histories. Inaccurate reports may force applicants to pay inflated deposits or lose desirable rentals altogether.
Limited eligibility for premium products: Reward-based cards and high-value offers go primarily to clients with consistent records. Errors push applicants into lower tiers, restricting access to favourable privileges.
Steps To Fix Credit Report Errors
Correcting inaccuracies requires attention, method, and persistence. Each stage contributes to rebuilding precision and credibility within your financial profile.
1. Examine your file carefully
Request a complimentary copy from any authorised bureau such as CIBIL, Experian, Equifax or CRIF High Mark. Inspect every element like personal identifiers, open and closed accounts, repayment status, and any data that seems inconsistent or misplaced. Detecting problems early limits potential damage.
2. Gather proof before filing
List every irregular entry and assemble valid evidence. If a personal loan settled last year appears active, keep closure receipts, statements, or confirmation mails ready. Strong documentation shortens investigation time and minimises further correspondence.
3. Raise a structured dispute
Visit the bureau’s official portal and register a complaint. Clearly outline the discrepancy and upload authentic proof. Simultaneously contact the bank or financial entity that submitted the report. As per Indian regulations, the bureau must review and respond within thirty days.
4. Follow the resolution process
Continue checking progress until completion. During verification, the affected record usually carries a temporary status tag. Once corrected, obtain an updated report and ensure that all changes are accurately displayed.
5. Maintain discipline going forward
Sustaining accuracy matters as much as repair. Pay dues promptly, keep utilisation low, limit new credit applications, and examine your file at least twice a year. Routine monitoring ensures ongoing stability and lender confidence.
Conclusion
Consistent evaluation of your CIBIL score preserves precision and credibility. Identifying discrepancies promptly prevents lasting impact, while steady repayment conduct enhances trust. An alert approach ensures assessments mirror genuine dependability and keeps future lending avenues open on balanced, favourable conditions.
