What you can expect after signing up for Credit Improvement ?

Credit score and credit report both play a crucial role in processing and approving a loan/credit card application. A low credit score can result in the rejection of your loan or credit card application. In case of a low credit score, you must begin working on improving the score so that you do not have to face difficulties in convincing the lender. This is when credit improvement comes into the picture.

The question then is, how do you repair your credit score? What results in a low credit score? Can a credit repair agency help with credit improvement? Here, we will try and demystify the concept of credit improvement and highlight the aspects that you can expect from credit improvement, specifically around CIBIL™ consumer dispute resolution.

What is Credit Improvement?

Credit improvement is a process of correcting your credit score by raising a dispute with the help of a credit repair agency. For initiating the process of a credit dispute, you must furnish a detailed report of your debts along with all the supporting documents.

What is a Credit Repair Agency?

A credit repair agency helps consumers with CIBIL™ dispute resolution and find solutions for their bad credit score while helping them to improve it. Consumers may not always have the necessary knowledge or time for filing disputes regarding a correction of their credit score. Thus, they can seek the help of credit repair agencies for filing their credit disputes.

Consumers must first verify the authenticity of the credit repair agency before approaching them and sharing personal information.

What are the Common Issues in a Credit Information Report?

There can be two kinds of issues that can result in errors in your credit information report:

• Incorrect information registered in your credit history and credit report.
• Payment defaults can result in wrong information on your credit report. Here are the common reasons:
• Financial hardship.
• Missed payments on credit cards. 
• Disputes with the lender related to charges or annual fees.
• Non-receipt of card statement resulting in missed payments.
• Disputes with the lender regarding fraud.

What Should I Check on My Credit Report?

At times, some of the aspects of your credit report could be faulty and must be checked, since this could lead to a low credit score. Here are the important points to check:

• Check all the accounts which are tagged as ‘open’. There are two situations in which an account can be categorised as ‘open’ without your knowledge:
  • The lending institution may not have communicated about the closure of an account.
  • The open account might not be yours.
• In case you find either of the above-mentioned errors, you can dispute it with the credit rating agency.
• Check account status: In case any of your accounts have been tagged with the status as ‘write-off’ or ‘settled’, it will be viewed as a negative aspect by lenders. Check if any account has been tagged incorrectly and accordingly raise a dispute.
• Check your payment history: If you notice any entry other than ‘000’ or ‘XXX’ within the Days Past Due section in your payment history, it will be an indication of missed payments. Make sure that you have been making all bill payments on time. This will also help in improving your credit score. However, it may take a minimum period of 6-8 months to see an improvement in your credit score.

Important Points to Note

Here are some of the important aspects to keep in mind while using credit improvement services of a credit repair agency:

• A credit repair agency will not help directly remove or edit the information contained in your credit report. Instead, they will assist you in rectifying the mistakes on your credit report so that your credit score improves over time.
• Most online dispute resolution processes are available free of cost and can be availed on credit rating agency websites such as that of CIBIL™.
• The bank/financial institution has to approve any modifications requested on your credit report.
• To resolve a CIBIL™ dispute, you can make use of credit repair agency services, however, there is no guarantee that the outcome will be in your favour. This could be the case especially if you have a poor credit track record.
• If you are looking to dispute any credit report information yourself, you can easily get the CIBIL™ online dispute resolution form on the official website of the credit rating agency.

Conclusion

CIBIL™ dispute resolution time could vary depending on the type of credit improvement requested and the credit history of the applicant. Credit improvement or credit repair agencies can help in raising requests for dispute resolution CIBIL™, however, an applicant has to be careful while selecting the right agency.

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