The start of a new year is a great time to look at things afresh and make the much needed changes in your life. The usual suspects included in your new year’s resolutions are health related issues. This year include a review of your financial health report card – your Cibil report.
Cibil report teach us lessons from the past
Your Cibil report is a summary of your financial transaction in the last 3 years. It a great way to review your borrowings, payments and spending and figure out where you may have mis-stepped so that you do not make mistakes in the future.
Cibil report is harbinger of the future
Not only does your Cibil report lay bare your past, it is also an early warning system for the future. If your Cibil score is falling you can make quick corrections to stem the fall and turn around your credit history to a more favourable one. Examining your credit report will tell you where your mistakes lie and hence corrective action is easier.
It’s time to correct mistakes
Cibil reports are not always accurate. They rely on data that the bank supplies to them. At times this data may be outdated. For instance you may have paid back your unsecured personal loan and the bank has not yet updated this in your records. You should file a ‘dispute request’ with credit bureau at the earliest. You have to write an application to them regarding the errors in the report. The format of the application and their address can be found on the website of the respective bureau.
Prevent identity theft
Checking the accuracy of your Cibil report regularly can detect signs of identity theft early.Verify your credit history for incorrect information. Pay particular attention to the inquiries section of your credit report. Unauthorized entries for pre-screened credit offers could be a sign that a thief has requested credit in your name. It should be a red alert for you.
Highlights any pending issues with banks
At times you may have “settled” a disputed loan or payment but in the other party’s books it still shows at outstanding. This will reflect badly in your Cibil report. While reviewing your Cibil report you can catch any such disputed payment areas and contact the lender to make the corrections.
The author is Co-Founder & Director, CreditVidya