When applying for a loan, most borrowers focus on their credit score—but few realize that even a small error in their credit report can reduce their chances of approval.
Lenders rely heavily on credit reports to evaluate your repayment history. If there’s a mistake—like a loan you never took or a wrongly marked late payment—it could damage your credibility and lower your eligibility.
Common Errors in Credit Reports
Incorrect Personal Information – Wrong name, address, or PAN details.
Closed Accounts Shown as Active – Old loans or credit cards still listed as open.
Duplicate Loans – Same loan reflecting twice.
Unauthorized Transactions – Fraudulent accounts or credit activity.
Wrong Payment Status – On-time EMIs marked as delayed or unpaid.
How Errors Impact Loan Eligibility
Lowers your credit score unfairly.
Makes lenders think you are a high-risk borrower.
Can lead to higher interest rates or outright rejection.
Steps to Protect Yourself
Check Your Credit Report Regularly – At least once every 6 months.
Raise a Dispute Immediately – Contact the credit bureau if you find errors.
Keep Records – Always save loan closure letters and payment proofs.
Monitor Your Score – Use tools to track your credit health.
How Vizzve Finance Helps
At Vizzve Finance, we believe in credit confidence:
Eligibility Checks: Pre-screen your application before lenders do.
Guidance on Errors: Help in identifying and resolving report discrepancies.
Smart Loan Options: Match you with lenders based on your accurate credit profile.
Transparent Process: No surprises—only clear, fair approvals.
Conclusion
One small mistake in your credit report can cause big problems for your loan application. By staying proactive, checking regularly, and fixing errors quickly, you can protect your eligibility and unlock better loan offers.
With Vizzve Finance, you get the right tools and support to ensure your credit history works for you, not against you.
FAQs
Q1. How often should I check my credit report?
At least once every 6–12 months to spot errors early.
Q2. Can a single mistake really lower my loan eligibility?
Yes, even one wrong late-payment entry can reduce your score significantly.
Q3. How do I dispute an error in my credit report?
You can raise a dispute directly with the credit bureau (like CIBIL, Experian, Equifax, or CRIF High Mark).
Q4. Does Vizzve Finance check my credit report?
Yes, we run eligibility checks and help you understand your report before applying.
Q5. Will fixing errors improve my credit score immediately?
It can take 30–60 days after the bureau updates your records.
Published on : 1st September
Published by : SMITA
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