How Do CIBIL Score Repair Agencies Work?

How Do CIBIL Score Repair Agencies Work?

The CIBIL score is one of the most important factors that determine your financial journey. Lenders attach a lot of weight to your score and credit report while approving a loan or credit application. A low score can detriment your chances by having a very negative effect on your profile. In the case that you have a low score, you must take immediate efforts to improve your score. This way you can enjoy the best credit deals available on the market.

So, how do you improve your CIBIL score? Well, apart from the other important financial hygiene steps to follow, you can also use a CIBIL score repair agency. How does it work? Read on to know everything about a CIBIL score improvement agency. 

CIBIL score Improvement Agency – What is it?

A CIBIL score improvement agency is also known as a CIBIL score repair agency. As the name suggests, it is an institution that aims to help individuals deal with the issue of bad credit. Quite often consumers do not possess the required understanding of the right way to fix their CIBIL score. A credit improvement agency assists customers in filing disputes.

The organization essentially helps consumers effectively deal with a bad CIBIL score. It also aids to chart out strategies to improve the same. Consumers do not understand the requisites for disputing errors in the report. The agency helps these persons rectify the score by filing a dispute. As a consumer, you will have to provide the institution with a detailed explanation of your debt accounts and supporting documents to dispute the case.

Key Factors to Understand about Credit Repair Agencies

There are certain factors that you must understand about CIBIL score agencies before you sign up for the service. These include:

• Credit repair agencies aim to restore or correct a poor CIBIL score.

• The agency may charge a fee to contact the credit bureau and point out any errors that are listed on the report.

• The agency does not hold the authority to fix or edit the information carried in your credit report. It will merely dispute your case on behalf of yourself.

• The lending or banking institution has to approve the modification before it is considered by the credit bureau.

• The credit report is a confidential document that is only shared with the customer via the postal address or email address. This is why the credit report is never shared with the agency. Even if there is a modification made in the report on account of the dispute raised by the agency, only the consumer receives the report.

• Credit repair can be conducted by the consumer, however, the process is tedious and time-consuming.

Possible Errors in the Credit Information Report

Errors can easily leave a mark on your credit information report. Some of the reasons for the same include: 

• Payment defaults

• Disputes with the lender on account of fees

• Incorrect card statements 

• Inability to manage finances

• Dispute with the lender owing to a case of fraud

• Incorrect information recorded on the credit report

Steps to Correct and Improve CIBIL Score

When an issue occurs in your credit report, you can undertake following actions to fix your CIBIL score: 

 

Rectify Incorrect Information: If you identify incorrect information in your CIBIL report, you must be quick to raise a dispute. The credit agency will accept your request to review the issue. In case the information in the report is found to hold errors, the record will be corrected.

 

Report Financial Hardships: Financial issues can arise owing to loss of a job, unforeseen expenses, and more. It may be difficult to repay debt at this point. During this period, you must bring this issue to the notice of the lender. The lender will avoid taking legal action and allow you to repay the loan when your situation gets better.

 

Dispute With the Lender on Fees and Charges: Several fees and charges are applicable on credit cards and loans. These could include interest rate, penalty, processing charges, maintenance charges, foreclosure fees, issuance charges, replacement fees, annual fees, transfer charges, and more. It is important to take note of all these charges before signing up. Disputing these charges later can affect your score.

 

Dispute on Account of Fraud: Assess your report regularly to mark up any kind of fraudulent transactions that may have been recorded. Immediately raise the issue with the lender who will process the concern. It is important to resolve disputes soon as they leave a negative impact on the report. 

To Conclude

While a credit repair agency may sound like a great service, it is important to choose a reputed CIBIL score improvement agency. An unauthorized agency could lead you to more trouble than lending you the required help. Thus, it is important to verify the authenticity of the agency before enabling them to dispute your case.

Also, keep a very close eye out on your CIBIL score and report regularly. This way you will be able to spot the possible errors. Bajaj Markets provides you with a convenient option to download the credit report for free.