Errors in credit reports are a very common occurrence. What’s more worst? When these mistakes remain unnoticed or are not rectified at the right time as they can negatively affect your credit score.
Generally, credit bureau agencies try to remain accurate while reporting your credit history. But sometimes, because of human error, inaccurate detail may creep into your credit report. What if your PAN number or name is not correct in the records of credit bureaus? What if they assigned you someone else’s credit report accidentally? These kinds of mistakes can significantly take a toll on your credit score, which will hamper your chances of getting loan approval. That is why monitoring your credit record for any kind of discrepancy is not only just important, but also it is necessary for your financial health. You should correct the errors as soon as it is possible to avoid further issues.
In this article, we will discuss credit monitoring, how it works, and how you can raise a cibil grievance if in case you are not satisfied with the services offered by CIBIL.
Meaning of Credit Monitoring
As the name suggests, credit monitoring helps you monitor your credit. That involves tracking your credit history to look out for any kind of discrepancies and suspicious activities. This service simply notifies you of any sort of changes made to your credit reports to make you well-informed. This ultimately assists in minimizing the chances of fraud and wrong use of an individual’s confidential information by theft or suspicious elements.
What all activities do this credit monitoring service report?
The type of notifications & alerts you get may depend on your credit activity. Below mentioned are some of a few errors that this service can catch:
- Inaccurate personal information, which includes wrong name, address, PAN number, etc.
- Hard inquiries from banks, lenders, and other financial institutions you do not recognize
- Opening the new bank or credit card accounts in your name
- Unusual transactions that you did not make.
Note: While credit monitoring can help you identify signs of potential fraud, it cannot prevent fraud. Thus, it requires an equal effort from your side to keep track of your report. Few simple measures can help you in the long run, such as not sharing your sensitive information-card numbers, bank account numbers, passwords and always employing two-factor authentication to carry out transactions.
Can a credit report monitoring service adversely impact your credit score?
No, it does not hurt your credit score at all. If any individual accesses his or her credit reports, it won’t have any negative impact on the CIBIL score. Reviewing a report results in a soft inquiry or soft pull. This means it will not reflect on a personal credit report. However, applying for a credit card, mortgage, or any other type of loan will result in a hard inquiry because the bank or lender checks your credit score to assess whether you are eligible for the loan or not. Thus, it will adversely impact your credit score.
How do you dispute errors on your credit reports?
If in case you find any error in your credit report, try to fix the problem at the earliest. For fixing this issue, you can contact the credit bureau agency from where the credit report is generated. To begin with the dispute process, you first require an online dispute form which will be available on the official website of the respective credit bureau. Fill in all details in the form and then send it to the credit bureau.
Generally, the Bureau has a period of 30 to 45 days after getting your dispute to verify & investigate information with the furnisher. After this period, the Bureau will report the result back to you within only 5 days of completing the verification process.
What if you aren’t satisfied with the information provided by Bureau?
All customers may or may not be satisfied with the information provided by their respective credit bureau regarding the credit report. So, if in case you find the response or solution provided by the Bureau inaccurate, you can raise a cibil grievance to bring the issue to the higher authorities of credit bureaus. There are 3 escalation stages, and they are as follows:
- Escalation Level 1: You can submit the cibil grievance online by filling in all the details in the “Escalate to Level 1” form. Then, this escalation will be further forwarded to the Manager of Consumer services. Credit Bureau will reply to your escalation within only 15 working days of escalation.
- Escalation Level 2: If you are not satisfied with the solution received at Escalation level 1, the cibil grievance can be escalated to another level, i.e. to the AVP of Consumer services. All you need to fill out the “Escalate to Level 2” form that will be available on the official website of the credit bureau. The Bureau will take at least 10 working days to respond to your escalation at this level.
- Escalation Level 3: If your problem is still not solved, the matter can be escalated to the Chief Operating Officer. To do this, you will need to fill the “Escalate to Level 3” form with all required details. The Bureau will take 8 working days to respond to your escalation at level 3.
The Bottom Line
If you have been a victim of cheating in the past, opting for a credit monitoring service is a prudent decision. It will notify you of any unusual changes or transactions that may have happened through any of your accounts. With the help of credit monitoring, there is no doubt that the likelihood of credit fraud and identity theft is lowered. Thus, keeping an eye on your credit report regularly is important as it not only improves your credit health and increases your chances of loan approval but drastically reduces the chances of you getting into any fraud.