A credit score rating is not only a three-digit rating however it very properly determines a borrower’s creditworthiness. Anurag Sinha, Co-founder and CEO of OneScore and OneCard says, “Banks and NBFCs take a serious note of an applicant’s credit score along with other factors to determine one’s eligibility for a particular credit product that one has applied for.”
A decrease credit score rating (usually <750) means the applicant doesn’t have a great credit score historical past and subsequently might be declined from accessing any line of credit score. Also, if one manages to obtain the mortgage, the rates of interest could be usually a lot greater for such debtors.
Note that your financial institution, your lender in addition to your bank card issuer, are collectively accountable to submit your reimbursement historical past and credit score behaviour to the credit score bureaus usually on a month-to-month or quarterly foundation. Post receiving this information, the credit score bureau formulates your credit score rating out of 900 and that is then revised each 3 months.
Sinha factors out, “While the overall process is very transparent and largely automated, there still might be some errors which should be rectified as and when to avoid any penalty. There is a formal process for rectifying one’s credit score.”
Retrieve and examine your Credit Report – There are many platforms/apps on-line that provide free credit score scores to customers. You can register and obtain a free credit score report. According to consultants, after you have the credit score report, it’s best to examine all of the minuscule particulars proper out of your major identify and speak to particulars to any main flaws in transactions or any type of credit score discrepancies.
Report the errors to the bureau – Every bureau, Sinha says “has its dispute resolution mechanism in place and the complaints can be registered online through their portals. Complainants should duly fill the form and submit it online along with the proofs backing your claims.”
Bureau investigation – Post submitting the main points, the bureau will usually contact you inside 30-45 days. The bureau will provoke conversations with you and the lender/ financial institution and entry and confirm your claims. After all the mandatory investigation, the bureau will rectify the error and make obligatory corrections.
Sinha explains, “If the users fail to lodge a timely complaint about any discrepancies, their credit score is likely to go down substantially and it may take a very long time and conscious efforts to reverse the same.”
He additional provides, “In the meantime, if the users require a credit, it might be extremely difficult for them to avail the same.”