A Credit Information Report (CIR) or a Credit Report is a summary of your past credit behaviour and reflects your Credit Score. It is published by a Credit Information Company or a CIC. All the information which reflects in this report is compiled from Credit Institutions (institutions you avail credit from, usually banks) you have transacted with, in the past. A CIR provides important decision to a potential bank in one glance. A healthy CIR could hasten the loan approval process for you while a low score could slow things down considerably. You could view a sample CIR here.
If a Credit Institution intimates you that the loan has been rejected owing to the Credit Score not being good enough, you need to get check the information compiled by the Credit Information Company or CIC (e.g. CIBIL), because it may have errors/ discrepancies such as the ones below:
a) Records are not updated: g. you have closed all your accounts on time with the bank and have NOC but it could still show as outstanding on your report.
The reason it may be still reflecting in your credit report is because the same information has not been provided to CIC by the concerned Credit Institution.
b) Factual errors in the CIR
The Credit Report could have some errors pertaining to:
i) Personal information such as PAN card details, address etc.
ii) Account Information such as last payment, account balance, amount overdue etc.
ii) Ownership i.e.your personal details and accounts
iv) Duplicate Accounts where the details of the account appear more than once
In case of the above mentioned situations, you can raise a dispute with the CIC. The CIC will check with the Credit Institution concerned and initiate the process of dispute resolution.
As per the Credit Information Companies (Regulation) Act of 2005, the CIC cannot modify any information in the database without confirmation from the concerned Credit Institution.
If you have received a confirmation from the Credit Institution about the submission of revised data to the CIC, you can check back with the CIC and confirm.
Cheers to a healthy, financially-stable and comfortable life!
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