How Errors in your Credit Report can Stand in the Way of Loan Approvals

check your CIBIL score

When you apply for any new line of credit such as a loan or a credit card, a prospective lender carries out a credit assessment to find out whether you are creditworthy. While many factors decide your eligibility for credit, one major influencer is your credit score computed based on your credit history report.

This is a report maintained by credit bureaus such as CIBIL in India. All credit information including your loan repayment track record, number of credit lines used and the like are passed to CIBIL by lenders. Based on this information, CIBIL assigns you a three-digit credit score. Lenders check the credit score each time you apply for a fresh line of credit, even if it is a quick personal loan.

Why do errors surface in your credit report

Because a large amount of data is passed between banks and credit bureaus each day, errors can sometimes creep into your CIBIL score report. If these errors are left unattended, they may come in the way of your loan approval. Your loan application may even get rejected because of a poor credit score. Credit report errors can thus have a negative impact on your credit score. A low credit score can make it challenging to access timely credit. Here are some errors in the credit report you need to look out:

Personal details

Your CIBIL report records your personal information such as your name, address, date of birth, PAN number etc. If these records are incorrect, there may be a case of mistaken identity.

Number of accounts

Your credit report has a complete list of all the credit accounts you hold. Careful scrutiny of these details ensures that all your credit accounts are correct and there is no duplication.

Overdue amounts

One of the main mantras of maintaining a healthy credit score is making timely repayments. However, making timely repayments is not enough to ensure that the information is passed on to the credit bureaus. A periodic check of your credit report will reveal whether overdue amounts have been recorded incorrectly in your credit report. This could result in a poor reflection of your repayment track record and can bring down your credit score drastically.  

Current balance inaccuracies

Perhaps, you have closed down a past loan account, but its closure has yet to reflect in CIBIL. As a result, your credit report can display an inaccurate balance bringing down your credit score.

How to resolve credit report errors?

Keeping a periodic watch (at least twice annually) over your CIBIL score can ensure that errors and discrepancies do not enter your credit report. If you spot errors in your report, you need to raise an immediate “dispute” with CIBIL for resolution. For this, you will need to check your CIBIL score in regular interval of time. Once you have built a dispute, CIBIL will cross check your complaint with the lender concerned and rectify the mistake. The process may take anywhere from a week to a month, depending upon the nature of the dispute.

Best deals with a high credit score

While errors in your credit history report damage your credit score, a blemish-free credit report is your ticket to any line of credit that you may need. For instance, if you are looking at a quick and easy personal loan from a financial services provider such as Bajaj Finserv, a high credit score will put you at a vantage position.

You may also be eligible for pre-approved offers with a stellar credit score. Armed with a high credit score, you can approach lenders for any financial product from the entire range, and walk out with the best deal through a transparent and hassle-free process.


I have been writing on tech since 2014 and what started as a side gig has now turned into a profession that I am immensely passionate about. A computer science graduate by education, I also enjoy reading and baking.

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