What Is a Credit Report Dispute and Why Does It Matter?

Your credit report reflects your creditworthiness. Your credit report influences how lenders assess your application and plays a key role in their decision when you apply for loans or credit cards. However, what happens if your credit report contains any discrepancies or differences? This is the stage where raising a credit report dispute matters most. This process allows you to dispute and correct the information in your credit report, helping maintain the accuracy of your credit profile.

Understanding Credit Report Disputes

A credit report dispute is a structured process that allows you to correct, challenge, or dispute variations or omissions in your credit report. This could include Repayment history, account ownership, latest payment updates, and unsolicited inquiries. Even a small error on the part of delayed payment/reporting by Credit Institutions. (like an overdue payment incorrectly marked) can reduce your score and affect your creditworthiness.

When you check your credit report regularly, you can identify such discrepancies, if any, at an early stage. Upon detecting the discrepancy, you can immediately raise a dispute with CRIF High Mark or the respective lender. For instance, CRIF High Mark allows you to raise such disputes directly through the CRIF Highmark platform.

Common reasons for raising a credit bureau dispute include:

• Wrong personal details (name, address, PAN, etc.)
• Closed accounts still marked as active
• Incorrect payment status or overdue entries
• Loans or credit cards that do not belong to you
• Unsolicited Inquiry

How a Credit Report Dispute Works?

When you spot an inaccurate detail after you check your credit score or report, you can start the dispute process in a few simple steps.

Step 1: Review Your Credit Report

Begin by downloading and reviewing your latest report from the CRIF High Mark website. Verify all listed accounts, payment history, and personal details/inquiries.

Step 2: Submit a Dispute Request

Once an error is found, you can initiate the process online. For the CRIF Highmark dispute, you may need to provide:

• The specific section or account you are disputing
• Input the correct details

Step 3: Verification by Credit Bureau and the Lender

After receiving your credit dispute, the bureau coordinates with the respective Credit institutions to verify the details.

The lender reviews the disputed information and confirms whether the data needs correction. The defined turnaround time to address such disputes is up to 30 days from the date of receipt (21 days for Credit Institution and 9 days for CRIF High Mark).

Step 4: Correction and Update

If the dispute is found valid, the information in your credit report is updated, and your credit score is recalculated accordingly. If not, you will receive a clarification along with supporting reasons. Either way, the process ensures end-to-end processing of the dispute.

Why Credit Report Disputes Matter?

Your credit report plays a vital role in your financial life. Any variances can affect your creditworthiness.

Let’s look at why handling disputes promptly matters so much.

1. Protects Your Creditworthiness

Variations in your report, such as repayment history, account ownership, latest payment updates, and unsolicited inquiries, can adversely impact your credit score.

2. Helps You Increase Your Credit Score

A wrongly reported default or delay can significantly lower your score. Once corrected, your score reflects your actual financial discipline. Timely dispute resolution can help increase your credit score, improving your eligibility for loans and credit cards.

4. Ensures Data Accuracy and Transparency

Credit reports form the basis for lending decisions. An accurate credit report benefits you and supports lenders in making informed and fair decisions. This promotes trust in the credit ecosystem.

5. Encourages Regular Credit Monitoring

Filing a credit dispute encourages better financial habits. When you check your credit report regularly, you become more aware of your financial behaviour: repayment patterns, utilisation ratios, and pending obligations. All of these are essential to maintain a good credit score.

Strengthening Your Financial Profile Through

Being proactive empowers you to stay in control of your financial reputation.

Remember, maintaining an accurate credit report is not a one-time task. It’s an ongoing process that reflects your commitment to responsible financial behaviour. Each small action, such as timely repayments, optimum credit utilisation, and dispute resolution, contributes to a stronger credit profile over time.

Whether you’re planning to apply for a home loan, credit card, or simply aiming to increase your credit score, accuracy in your credit report is essential. By staying vigilant and making use of the dispute-raising process whenever needed, you ensure that your report reflects your true creditworthiness.

Disclaimer: This information is provided solely for consumer awareness and does not create any obligation on the company to offer any service. For more details, customers may refer to the Consumer Grievance Redressal Policy available on our website

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