It’s nearly impossible to enjoy a perfect financial life in which you don’t miss a single loan EMI or a credit card bill. Most people make a slip at least once in their life. However, the good news is that your bad debt or past financial mistakes are automatically removed from your credit report over time.
If it’s been a long time and your old debt hasn’t been removed from your free CIBIL report, then you can take the following steps:
1. Compare Multiple Credit Reports
There are many credit rating agencies in India but only 4 of them are at the top and referred to by the majority of traditional banks and NBFCs. These are CRIF High Mark, Experian, CIBIL TransUnion, and Equifax. You can compare them to identify the one that’s showing the old debt.
2. Contact the Concerned Credit Agency
Now that you know where the problem lies, you can contact the appropriate crediting bureau directly. Fortunately, all the top credit rating agencies allow the users to raise disputes through their websites in a convenient and simple manner.
3. Contact the Bank
You must also contact the bank which submits your financial details to the credit rating agency. Sometimes, they submit wrong information which results in a poor score or a bad remark on your report. In this case, they may fail to report that your old debt has been cleared.
Taking the case up with your lender can easily resolve the issue if they find out that the fault was on their side.
4. Approach the Upper Management (Optional)
If you have obtained a satisfactory resolution with your bank, then you can skip this step. However, if they haven’t done the needful or are simply unresponsive to your concerns, then you can send an email to the head branch. You can visit the official website of your bank and raise the issue there.
You also have the option to pay a visit to the banking ombudsman which acts as a quasi-judicial authority that was created to provide resolution of the complaints of banking customers.
5. Wait for the Changes
After the mistake has been acknowledged, the changes will be visible over a period of a few weeks. This is because the credit rating agencies update the records periodically. In most cases, you shall be able to see the bad credit fix in your report in a month or so.
Preventive Solution for Old Debt Damage
If you want to protect your credit score from unwarranted damage due to carelessness on your bank’s end, then it’s important that you check your credit report from time to time. This will allow you to check for issues like old debt, wrong repayment information, discrepancies in personal details such as name, address, bank account, etc.
All the credit rating agencies in India are required to offer the customers one free credit report every year. So, there is nothing stopping you from getting your free CIBIL report today! You can simply visit CIBIL’s official website, create an account, answer a few questions for verification, and that’s it! They will send your report to your email address within minutes!
Monitoring your credit report is also beneficial for the following reasons:
Identity Theft and Frauds
Identify thefts and financial frauds are still rampant in India. The main reason behind it is the lack of awareness. Most people realize about these only when it’s too late. However, by monitoring your credit report on a regular basis you can identify anomalies such as unrecognized bank accounts or credit card accounts, unfamiliar loan inquiries, etc.
Healthy Credit Score
By checking your credit report, you can monitor your credit score changes. So, if you notice your score dropping, you can take appropriate measures to bring it back to the normal level again.
Mistakes in your personal information and credit information can lead to a poor score. However, by identifying these mistakes and getting them corrected, you can easily prevent the damage.