Credit report: Check quarterly to spot repayment lapses, errors, and fraud

In case of inaccuracies and fraud, report both to the lender and credit bureaus

A recent survey by Paisabazaar across 710 cities found Delhi to be the most credit-healthy city, with the highest average credit score of 746, followed by Pune, cities of Kerala, and Chandigarh. If you have not checked your credit score recently, do so. If the score is low, examine your credit report in detail.

 

A score of 750–800 or higher indicates a strong repayment record. “If your score has fallen below 700, go through your credit report carefully to identify the reasons,” says Deepak Kumar Jain, founder and chief executive officer (CEO), CredManager.in.

 

What a Credit Report Reveals 

Reviewing your credit report once every three to four months helps you understand why your score is low. “A credit report provides detailed insights into delays, missed EMIs, or defaults, which may have adversely impacted your score, allowing you to take the required corrective action,” says Raoul Kapoor, co-CEO, Andromeda Sales and Distribution.

 

Regular monitoring of the credit report also helps spot other issues that may be pulling down your score. “It will enable you to detect errors, inaccuracies, and even fraudulent activities,” says Radhika Binani, chief product officer, Paisabazaar.

 

Accessing the Report

 

Credit reports can be accessed once a year for free from the four credit bureaus. Typically, reports run to two or three pages, depending on the person’s borrowing history. They include personal details along with a record of loans and repayments. “This includes loan amounts taken, dates and sources of borrowing, repayment schedules, delays or defaults, loan settlements, and current outstanding amounts,” says Kapoor. Reports also reflect loan inquiries made in recent times.

 

What to Check Closely

 

Payment history deserves special attention. “Reviewing the detailed payment history will help you identify which loan accounts have defaults or delays, and by how many days,” says Jain. Look also for settled or written-off accounts, which tend to depress the score.

 

Examine the report for errors. “Errors can slip into your credit report—from minor date mismatches to major issues like unsettled accounts—causing your score to drop. Spotting them early helps you fix problems faster,” says Adhil Shetty, CEO, BankBazaar.com.

 

Watch out for identity theft. “Any changes in personal details can mean fraudulent activity,” says Binani. The report should not have any account that you do not recognize.

 

Steps to Improve Credit Health

 

Timely repayment of EMIs and credit card bills is essential, as even short delays affect your score. Pay your credit card bill in full, as unpaid balances attract heavy interest and signal credit-hungry behavior. Keeping your card utilization ratio below 30 per cent also helps.

 

“Avoid closing old credit accounts, as a long and clean repayment history strengthens your score. Be cautious about applying for fresh credit too often, as multiple applications make you appear desperate for loans and can bring your score down,” says Shetty.

 

Jain adds that your credit health can steadily improve with timely repayments, controlled use of credit, and fewer loan inquiries. If inaccuracies or fraud are detected, Kapoor advises informing both the lender and the credit bureau immediately.

 

Borrowers with good credit scores are treated better by lenders. “Today, your score directly impacts interest rates—higher scores mean better rates, while poor scores can even lead to the blocking of loan approval, even if you are eligible on other counts,” says Shetty.

 

If You Have Fallen Prey to Identity Theft

 

·         Report the fraud to the lender(s) from whom the loan was taken

 

·         Dispute the fraudulent entry with the credit bureau(s)

 

·         File an FIR and keep all documentation

 

·         Place a fraud alert on your credit report

 

·         Monitor your report, follow up, and escalate if the problem remains unresolved  The writer is a Delhi-based independent journalist