What to do when you spot a mistake on your credit info report?

Typically, you check your credit information report (CIR) when your loan gets rejected and the lender tells you it’s because of some information on your CIR. But there is no need to panic. Mistakes on a CIR can be easily corrected with the help of the credit bureau. All you need to do is:
a) Purchase your own CIR from the credit bureau
b) Identify the erroneous information
c) Provide name, address, date of birth, an enquiry control number (ECN) and the nature of the error on the credit bureau’s website.

This is known as a ‘dispute request’ in credit bureau parlance.
The ECN is a unique 9-digit number found on the top right hand side of your CIR and is generated every time a CIR is generated. It is very important to provide this number to the bureau, as it helps identify the CIR on which you would like to ‘dispute’ information.

What does the credit bureau do once I raise a ‘dispute request’?
Once you have raised a ‘dispute request’, the credit bureau checks whether all the requisite details have been provided. The request is then routed to the dispute resolution department for analysis.

This is because one type of dispute request can be resolved by the credit bureau itself. If the credit bureau is unable to resolve the request, it is routed to the relevant lender. Once the lender confirms that there is an error, it will provide the credit bureau with corrected data. The credit bureau then updates the data and informs you as appropriate. Always remember, it’s the duty of the bureau to help you resolve your request.

Why doesn’t the credit bureau verify the information with consumers before updating the report?

Credit bureaus have the information of millions of individuals. It’s virtually impossible to verify the information of each individual. The ‘dispute process’ is provided to the consumer to help correct any discrepancies that may arise in their CIR exactly for this reason. Hence, it is recommended to review your CIR prior to submitting a loan application just to be sure that there are no errors on your CIR which may hamper your loan approval.

The writer is senior vice-president - consumer relations, Cibil (www.cibil.com) and can be reached at creditwise@cibil.com.