Reasons that lead to a dispute in civil report

Civil ratings are a prominent feature of our financial system. While the document provides pertinent information about our credit, mistakes in it due to various factors are common. If these mistakes remain unnoticed or if timely corrections are not initiated, then they are bound to further complications and the worst could be a rejection of a loan application.

Banks and financial institutions check an individual’s civil report to assess his capacity to repay loans. In the past, there have been several instances where wrong information has caused a consumer immense suffering.

A consumer could be denied a home, personal or educational loan due to the wrong information in the report. Let us check out some of the below given common reasons that every one of us must look out for to avoid any eventualities.

Incorrect personal information: Primarily errors happen at the aggregation stage or during the data submission stage. Errors at the submission stage occur due to lender’s fault due to typographical mistakes. Most often details like names, addresses, date of birth, gender, PAN, etc., are manually fed which increases the possibilities of mistakes. This could impact credit scores.

Time lag errors: Sometimes cibil report errors could be due to the time lag between data collection and submission and updating of account status. Bureaus receive data with a one-month lag period and the status of the account may not have been updated in the report. The customer may consider this to be an error.

Account ownership: Sometimes the financial history of another person could get merged with the individual’s account meaning the individual’s entire credit history is built on incorrect data. Also, the possibility of financial details being misused by another person cannot be ruled out. Whatever the case, it could impact the individual’s credit score and eventually the cibil report.

Incorrect credit limit: Often credit card owners raise the limit on a card and do not inform the bureau. In such a case, the report shows a low credit limit as a result of which the customer’s account might show a high credit utilisation ratio which affects the credit score negatively.

Correction process, duration

Once the error is noticed it is always advisable to dispute the error on the cibil website. Multiple field errors can be disputed in a single go.

It takes approximately 30 working days for the dispute to resolve depending on the time taken by the credit institution to revert with relevant information. It is important to know that civil does not charge anything for dispute resolution. Once the dispute is raised, the customer receives an email notification regarding the status of dispute every seven days.

Log on to https://civilscores.com/civil-report for more information.