Financial institutions analyse your CRIF credit report as part of their loan approval process. It is arguably one of the most crucial indicators of your creditworthiness. Given its importance, it is critical that you take all possible measures to ensure your CRIF credit score doesn’t suffer. Doing this will help you ensure your credit applications are not only successful but you also get the best terms and conditions.
While making payments on time, keeping a low credit utilisation ratio, etc., are all ways to achieve this, ensuring your credit report is free of errors and paints an accurate picture of your financial status is by far the most important.
If you’re wondering how you can maintain your CRIF credit report by correcting errors, look no further. Here, we discuss everything you need to know about the process.
What is a CRIF Highmark Score?
The Centre of Research in International Finance (CRIF) acquired a significant stake in Highmark Credit Information Services Private Limited in 2014 to become CRIF Highmark. Today, it is one of the four major credit bureaus in India. It assesses your creditworthiness and, based on that, assigns you a score.
This score ranges lies between 300 and 900 and offers credit scores for both individuals and businesses. The higher the score, the better your chances of gaining credit approval. CRIF Highmark assigns you a score based on factors such as bill payments, loan repayments, used credit, etc.
Since lenders often rely on your CRIF Highmark credit score to assess your credit applications, ensuring it is free of errors and depicts an accurate picture of your finances is crucial.
Correcting Inaccuracies in Your Credit Report
CRIF credit report errors can impact loan eligibility and result in unfavourable interest rates and terms and conditions, so it is important to correct them promptly. Common mistakes include incorrect balances, inaccurate personal information, and duplicate accounts. Review your report carefully to identify and resolve these issues.
In case you see errors, you can rectify them by taking the following steps:
Step 1: Navigate to the official CRIF Highmark website and log in to your account.
Step 2: Once logged in, access your CRIF credit report.
Step 3: Next, click on the ‘My Report’ option and then select the ‘Raise a Query’ tab.
Step 4: Choose the category that best represents your issue.
Step 5: Enter the specifics of your query or the correction needed.
Step 6: Lastly, click the ‘Submit’ button to file your dispute.
After you file your dispute, CRIF Highmark will acknowledge it and contact the relevant lender. The time it takes to address the dispute varies depending on whether the lender accepts or rejects it. If approved, CRIF will inform you of the changes; if denied, you will be notified, and you can escalate the issue if you want.
How to Improve Your CRIF Credit Report?
Here are some measures you can take to maintain a strong CRIF credit report:
1. Clear Outstanding Dues
Your CRIF credit report is affected by outstanding loans. It is important to pay off any outstanding loans to maintain a healthy credit score. Fully repaying loans is better than settling them, as settlements can be marked on your credit report.
2. Make Timely Payments
Keeping up an excellent credit score requires you to pay your credit card payments and monthly EMIs on schedule. In case you face any financial difficulties, aim to make the minimum payment necessary before the due date. By doing this, you can prevent your CRIF score from dropping.
3. Maintain a Healthy Credit Utilisation Ratio
The Credit Utilisation Ratio, or CUR, is the percentage of credit that you are using compared to your total credit limit. It is advised that your CUR remain below 30%. For example, if your total credit limit is Rs. 1,00,000, using no more than Rs. 30,000 helps portray responsible credit usage. Exceeding this limit can signal credit dependency and harm your score.
4. Maintain Your Credit Age
While it is advisable to close old loans, the same does not apply to credit cards. Older credit cards influence your credit report’s total credit age. For example, if you have an outdated credit card, you can raise your credit card score by continuing to use it with few transactions. Closing it could lower your credit history and your credit score.
5. Diversify Your Credit
Your capacity to manage various credit kinds is demonstrated by a well-balanced mix of credit types, such as credit cards, unsecured loans (like personal loans), and secured loans (like home loans). If you are able to manage a range of financial responsibilities efficiently, lenders are more likely to consider you as a responsible borrower.
6. Avoid Applying for Too Much Credit
Frequent credit applications lead to hard inquiries on your credit record, which could negatively impact your score. It’s best to avoid applying for fresh credit if your score is low or if you’ve already had your credit declined.
Tips for Addressing Errors in Your Credit History
Keep the following tips in mind when assessing your CRIF Highmark credit report:
1. Check Personal Details
Verify the accuracy of your personal data, including your name, address, and PAN number. Errors here can cause identity-related issues that may affect your credit profile.
2. Verify Current Balances
Verify the accuracy of the current balance due on any outstanding loans or credit card payments. For example, your report has to be updated if you’ve paid off the entire sum or portion of your debt, but the amount is still displayed as due.
3. Validate Outstanding Loans
Verify that the credit accounts and loans listed are all of yours. Any debts that you find to be unaccounted for should be reported right away as they may be the result of an error or mistaken identity.
To Sum Up
To be eligible for favourable credit terms and conditions, you need to keep a high CRIF credit score. You can raise your financial profile and considerably raise your CRIF credit score by following correct processes, which include paying on time, settling past-due balances, and ensuring accuracy in your credit report. Furthermore, it’s critical to correct any errors in your credit history to avoid unnecessary obstacles when applying for new credit.
You can also visit the Tata Capital website or download the app to check your credit score online. Tata Capital can assist you in achieving your financial goals and simplify the process of building better credit.
20 November 2024
6 mins read
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