Stories
Credit Score Falling? Don't Pay for Quick Fixes, Understand Your Report First!
- •Be wary of companies promising to "repair" your credit score for a fee, especially if they claim to remove accurate negative information.
- •In India, credit information companies like CIBIL maintain credit reports based on lender data; consumers can dispute inaccurate information directly.
- •Paying an agency cannot remove legitimate late payments or defaults from your credit report; focus on correcting genuine errors yourself.
- •RBI offers a compensation framework for delayed correction of credit information, providing Rs. 100 per day if disputes aren't resolved within 30 days.
- •Improve your credit score by addressing underlying financial behaviors like timely payments and reducing credit utilization, rather than seeking shortcuts.
Key Questions Answered
No, if your credit report contains accurate details about late payments or defaults, paying an outside agency cannot make those records disappear. Legitimate credit-repair companies cannot erase genuine repayment history merely because a fee was paid.
Under the current RBI framework, if a complaint regarding inaccurate credit information is not resolved within 30 calendar days, compensation may become payable at Rs. 100 per calendar day of delay, subject to applicable conditions.
If you find a genuine mistake in your credit report, you can raise a dispute directly with the relevant credit bureau and lender without needing to pay an outside agency. It helps to gather supporting documents like bank statements and payment receipts before filing the dispute.
