How to spot and fix credit report errors that lower your credit score

Mint

25-07-2025

Every small inaccuracy in your credit report can quietly bring down your credit score. Thus lowering your chances of securing a personal loan or credit card. Now it is a given that many borrowers regularly track their credit scores, relatively few review their credit reports in complete detail. Due to this they often miss hidden mistakes and errors that could cost them favourable terms and lower interest rates on their personal loans.
Credit reports compiled by CIBIL, Equifax, Experian and CRIF High Mark can often contain discrepancies and disputes that go unnoticed by borrowers and can later hamper credit scores. Some common credit report mistakes include: Personal information errors (wrong PAN, Aadhaar details, date of birth or address). Closed personal loans marked as active. Payments of EMIs, credit card bills not updated by lenders. Accounts wrongly reported as delinquent i.e., as accounts that have missed personal loan EMIs, credit card bills or other associated credit repayments. Duplicate loan entries, wrong data or incorrect ownership details.
All such errors may easily lower a borrower's credit score by 50-100 points. This is enough to shift a borrower from an 'excellent' or 'very good' category to a 'moderate risk' category, hence impacting both approval chances, applicable interest rates along with associated repayment terms and conditions.
To streamline the same process the Reserve Bank has now mandated financial institutions to refresh credit bureau data every 15 days. Earlier, updates were not required to be done frequently. That is why this move is expected to bring credit reports closer to real-time accuracy, benefiting millions of retail borrowers.
Currently, borrowers are permitted to avail one free credit report per year from their respective credit bureau. Keeping the same factor in mint, it is prudent for borrowers to closely monitor their credit reports. In case of reviewing your credit report you find an error then you should follow the given steps to resolve the situation: Raise a dispute on your respective credit bureau's official website. Provide supporting documents such as closure letters, errors or payment proofs. Contact the concerned lenders customer support team if the issue persists. Discuss your problem with the designated customer support team of the credit bureau. Monitor the status, disputes must be resolved within 30 days under the Credit Information Companies (Regulation) Act, 2005 (CICRA) framework.
This matters because a single reporting error can result in higher personal loan EMIs, lower loan amounts, outright rejection or delays in availing credit. It is important to acknowledge the fact that credit reports are no longer optional, this is a consequence of credit becoming central to financial life in the country.
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Disclaimer: Mint has a tie-up with fin-techs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.