India is a country with ample career opportunities especially in the metro cities such as Mumbai, Bangalore, Delhi, and Pune. If you have the right education and the right skills, you can get the job you want for sure. However, even with a huge package you can’t always expect to enjoy complete financial freedom.
Everything is expensive today- accommodation, healthcare, higher education, etc. Thus, you may need a loan or increase credit card limit at any point in your life. For this, you need a good credit history (which you can check with a free CIBIL report). However, what if your report isn’t what you expected it look like? On that note, the following are the top 4 horrifying moments that you don’t want to find in your credit history:
A credit report can contain both good things and bad things. The good ones include a high score, details of several types of credit (credit cards, loans, mortgage, etc.), high income, and low debt. However, the bad ones could be a mention of your name on loan defaulter list, high debt, and “remarks”.
It’s easy to understand why the first two may have a negative impact on your score, but do you know what these “remarks” are? These are the comments that your previous lenders may put on your credit report. These are often personal in nature and don’t really affect your score. However, they surely can raise red flags for your future lenders.
Some common remarks include your personal disputes with a bank’s management, misunderstandings that left a bad taste in a bank employee’s mouth, etc. At any rate, if you find these, you may want to talk to your bank and request them for their removal.
An inquiry takes place when a bank or NBFC asks for your free CIBIL report from a credit rating agency. This is a common step that’s a part of their protocol to process your loan application and nothing to worry about. However, if you find a loan inquiry in your credit report that you don’t recognize, then indeed you shouldn’t let it slide.
An unknown credit inquiry could be a result of an identity thief trying to get a loan or a credit card using your profile. Thus, if you don’t alert your bank, then not only you risk damaging your credit score, but also potentially lose your hard-earned money.
You may think that a typo in your name or other personal or financial details shouldn’t be a big deal. However, even the smallest mistakes and discrepancies in your credit report can cause big problems for you. In fact, one of the biggest reasons why people get a bad score is because of discrepancies only.
To take an example, let’s say you are paying your loan EMIs on time for many years now. However, your bank mistakenly submits wrong information to the credit bureau which makes them think that you haven’t paid the EMIs for the last 4-5 months. Considering the same, they may put you on their loan defaulter list!
Discrepancies in your report, irrespective of whether major ones or minor ones, shouldn’t be ignored at any cost. Instead, if you find one, inform the bank immediately.
Life can be hard sometimes, and finding it impossible to handle the debt, people default on their loans too. It quite common, really. So, if you have defaulted in the past, then you shouldn’t feel bad especially if you paid off the dues later.
Sometimes banks don’t remove the old debt from their records, which is why it may still show in the borrower’s credit report. So, if you find the same in yours, then you should be concerned. You must contact your bank immediately and try to convince them that you have become a responsible credit user. If you have really been good with your repayments in the recent past, then it’s possible they may remove the bad debt from your report.