CIBIL Score: You are paying all the installments on time, still your CIBIL score can be bad, these are the reasons..

CIBIL Score: Whenever a person wants to take a loan and applies to the banks, the CIBIL score is first checked by the banks.

People believe that if all the installments are paid on time, then the CIBIL score (how to fix credit score) can be fine, but let us tell you that sometimes some mistakes are made in it, due to which the CIBIL score gets spoiled even if you pay all the installments on time.

Check the credit report.

Many times it happens that many things go wrong in your credit report (credit report errors), such as your name, date of birth, PAN number, address or mobile number, etc. To correct this, you can apply for a correction (credit report correction) request in a credit bureau like CRIF High Mark.

Along with this, you will have to join a copy of PAN card or Aadhar card and if the bank or loan company has given you wrong information, then you can contact them for this also.

There may be a mistake in the account details.

Many times, a loan or credit card is shown in the credit report which you have not even taken, or an old account has been closed, but still it is showing active in the credit report.

If something like this happens, first of all, file a dispute request and join the no dues certificate or account closure letter and after that you should also contact the bank or financial institution which has sent the wrong information.

There may be a mistake in the payment history.

If you have paid the installment on time and still late payment is showing in the report, then it can also be a wrong entry of EMI bounce.

If this happens, then in such a case, file a complaint with the credit bureau along with the bank statement or payment confirmation email. Along with this, get the correct information updated from the bank.

Credit Utilization Ratio can get worse.

Sometimes it also happens that the credit card limit or loan amount can be wrong in the report, due to which your Credit Utilization Ratio can get worse. If you want to improve it, then to improve it, take written confirmation from the bank or loan company and send it to the bureau and get it corrected.

Get old information updated on time.

Sometimes it also happens that even old closed accounts are shown as open or the old address and job information is also not updated on time.

If this happens, get the correct information updated in the credit bureau with the help of account closure or settlement letter. If you want to get this done, then you can also file a dispute online for this.

Why is a correct credit report important?

It is very important to have a correct credit report to keep the loan or CIBIL score correct. This will not only keep your credit score good but you will also not face any problems in getting a loan or credit card in future. That is why you should check your credit report from time to time and correct it if you find any mistake.

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