Let us say that you had taken a credit card and have now closed the credit card, having settled all the outstanding dues.
If you realize that there has been an error the error could be on account of a number of reasons. Before we understand the errors in a credit score let us understand:
Why a credit score is important?
A credit score is important, if you want to take a loan. You cannot get a credit card, if you are a loan defaulter, which has resulted in a poor credit score. Generally, a Cibil score of 700 and above, is considered as a pretty decent credit score. Therefore, you must ensure that your credit score is pretty good and you do not default on your loan.
What are the reasons for an error in the credit score?
There could be various reasons for an error in your credit score. The first and the foremost is that the bank could have reported wrong information. This could have led to an error in your credit score. It is therefore important to talk to the bank and inform them of the error. The other reason for the error could be some human error like punching in the wrong information like your PAN card details or your name itself.
In such cases, you should try and find out, where the problem rests. If it is an error on the part of the bank, you could inform the bank. On the other hand, if it is an error in the part of the credit score company like CIBIL, you could take-up the matter with them.
Please check your own track record
It is important that you check your own track record to see, if there is an error from your side. In case you yourself have not made the payments on time, it is impossible to correct your score. So, go back and check your own bank statements and other details to see if you have actually made a mistake somewhere.
How to get your Cibil score?
There is a small amount of money that you have to pay to get a Cibil score. Even if you are confident of the amounts that you have paid, it is important to ensure that you check your credit score This would help you to make sure that everything is in order when you want a loan.