Here’s a secret which you would love: If you have a high credit score, you can opt for better interest rates on loans. Opting for a loan suspension will not affect your credit score. But it is mandatory to maintain your credit score and keep checking for any errors, particularly when planning for a new loan. Here you can get your free credit reports
There are four credit bureaus in India: (a) CRIF High Mark, (b) Experian, (c) Equifax and (d) TransUnion CIBIL. As stated by the RBI, the customers are entitled to receive only one credit report every 1-year from each credit bureau.
If you want an extra report, it will be charged. CRIF High Mark charges Rs. 399, and Equifax charges Rs. 472 for each new report. TransUnion CIBIL login charges Rs. 550 for a month and Rs. 1200 for a year for easy unlimited access to your credit reports.
For now, Experian is providing free reports for the whole year. This enables consumers to get educated about accessing their credit reports.
The method of getting a Cibil Report and the benefits of having a high credit score:
If a person wants his credit report online, they don’t have to submit any documents. But you may have to create a CIBIL login account on the bureau’s website. However, for further details, you may have to give your permanent account number (PAN) card, residential address, date of birth and others. You can download the CIBIL report. If you want your report offline either by post or by courier, you have to enclose a demand draft to the credit bureau.
Having a high credit score has its benefits. A higher credit score reflects a good track record and prestige of repaying loans on time. It will also help you in future to negotiate for a reasonable rate of interest on loans.
It is not possible to check your credit score quite frequently. If you have a plan to apply for a loan shortly, then you have to check your credit score at least once a year. But if you are going to rebuild your credit, you should check your score every month to keep proper track. Keeping track of your credit score will help you to detect any fraudulent activity and errors and rectify them, early.
Types of errors can be detected in your credit report:-
- Mistakes in personal information – The personal information in your credit report may have some errors, like your name, date of birth, gender, address, mobile number etc.
- Inaccurate records of Credit accounts – The most common and important section of your credit report is your account type, status, account ownership type, opening and closing, current balance, etc. Errors in these can directly unfavourably affect your credit score report and thus, it is compulsory to get rid of these mistakes as soon as possible.
How to rectify your credit report:-
- Firstly, you have to obtain an online dispute form from your respective bureau’s website. Thereafter, you need to fill-up the form with all the necessary information and then submit the form to the bureau agency.
- The bureau will examine the form and the information provided and send it to NBFC or official lenders for further investigations.
- The licensed lenders shall cross-check all the errors in the report and have to share an audited report with the respective agencies. However, if no errors are detected, the agency should inform you with a revised notice.
- If the reports have some errors, financial institutions should rectify them and then send them to the concerned agencies.
- Finally, the bureau will send you the rectified and updated report.
Why should you check your credit report frequently?
It is necessary to check your credit score frequently to identify any errors and to take precautionary measures to ensure that the details given in the report are correct and to track your credit score and progress in your credit status.