How to fix your credit score
A credit score is not just a three-digit score, but it very much determines a borrower’s creditworthiness. Anurag Sinha, Co-Founder and CEO of OneScore and OneCard, says, “Banks and NBFCs take an applicant’s credit score and other factors seriously in determining eligibility for a particular credit product for which he made a request.”
A lower credit score (usually
Note that your bank, lender, and credit card issuer are jointly responsible for submitting your repayment history and credit behavior to the credit bureaus, usually on a monthly or quarterly basis. After receiving this data, the credit bureau formulates your credit score out of 900 and it is then reviewed every 3 months.
Sinha points out, “While the overall process is very transparent and largely automated, there may still be errors that need to be corrected as they go along to avoid any penalties. There is a formal process to rectify one’s credit rating.
Retrieve and check your credit report – There are many online platforms/apps that offer free credit scores to users. You can register and download a free credit report. According to experts, once you have the credit report, you need to check every minute detail, from your primary name and contact details to any major flaws in transactions or any form of credit discrepancy.
Report errors to the office – Each office, says Sinha, “has set up its dispute resolution mechanism and complaints can be registered online through their portals. Complainants should duly complete the form and submit it online along with the evidence to support your claims. »
Bureau investigation – After submitting the details, the office will usually contact you within 30-45 days. The office will initiate conversations with you and the lender/bank and access and verify your claims. After all the necessary investigations, the office will rectify the error and make the necessary corrections.
Sinha explains, “If users do not timely file complaints about discrepancies, their credit score is likely to drop significantly and it may take a lot of time and conscious effort to reverse the trend.”
He further adds, “In the meantime, if users need credit, it could be extremely difficult for them to get it.”