Victim of Identity Theft? Here's How You Can Fix Your Credit Score

As soon as an individual identifies an issue of identity theft, they must contact a credit rating agency. They can undertake the following steps to resolve disputes related to identity theft:

Victim of Identity Theft? Here's How You Can Fix Your Credit Score
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Identity theft has a severe impact on several aspects of an individual's life. An identity thief gathers personal information of the individual and uses them to raise credit in their name. This is clearly reflected in the credit report of an individual.

Hence, it is a must for an individual to carefully monitor the CIBIL score and other details on the credit report to identify such issues without delay. Once identified, the aggrieved party can take several steps to resolve the issue.

Steps to Resolve Identity Theft Disputes 

As soon as an individual identifies an issue of identity theft, they must contact a credit rating agency. They can undertake the following steps to resolve disputes related to identity theft:

Step 1: Visit the official website of CIBIL.

Step 2: Navigate to the "Dispute Resolution" tab.

Step 3: Select the "Consumer Dispute Resolution" tab.

Step 4: Login to the CIBIL account and navigate to credit reports.

Step 5: Select the "Raise a Dispute" option.

Step 6: Fill up the online dispute form with the correct details.

Step 7: Select the dispute type and submit the application form.

After flagging the dispute and submitting the application form, CIBIL redirects the application to the concerned financial institution. Once the financial institute accepts the application, they make the necessary corrections. Individuals can monitor the changes financial institutes make by navigating to the "Under Dispute" section. Once completed, the "Under Dispute" section is removed.

The process of dispute resolution takes almost about 30 days. However, the entire event can negatively affect an individual's CIBIL score. This might pose a problem as different financial institutes have a credit score cut off that must be met for them to stand eligible to apply for a loan. Nonetheless, there are several steps an individual can take to improve their credit score.

7 Ways to Improve Your Credit Score

Below are a few ways by which individuals can improve their CIBIL score:

  1. Opt for loans only when required

To maintain or improve credit scores, individuals must keep themselves from applying for loans unless extremely necessary. Frequent loan application indicates that an individual is unable to plan their finances well. Each time someone applies for a loan, they have to go through hard enquiries, which can negatively impact their credit score.

Additionally, if there is a history of frequent loan rejection, it can significantly lower the credit score. Hence, it would be best to apply for a loan only when funds are important and check the eligibility criteria beforehand to avoid rejection.

  1. Pay the EMIs on time

Paying EMIs in a timely manner significantly improves the CIBIL score of an individual. If the borrower happens to miss out on a timely EMI payment, they can try setting a payment reminder to avoid delays.

  1. Do not exceed the credit card limit

Exceeding the credit card limit every month is a sign that the person does not plan their finances well. This creates a negative impression and a drop in credit scores. In case an individual needs to overspend every month, they can opt for a higher credit limit so as to stabilize their credit score and improve it considerably with time.

  1. Refrain from applying for multiple credit cards

Individuals opting for multiple credit cards have to undergo several enquires that can negatively affect the credit score. Hence, it would be best to avoid such a step unless it is necessary.

  1. Keep a balance between secured and unsecured loans

If an individual frequently applies for unsecured loans, it can result in a significant drop in credit score. So it would be best to keep a balance between secured and unsecured loans to maintain a healthy credit score.

  1. Evaluate your credit report every month

It is a must to evaluate the credit report at regular intervals in order to identify any discrepancies as soon as they occur. This saves a borrower from encountering any problem in the future while securing a credit.

  1. Try to maintain old debt records

Individuals must maintain a prominent record of their previous loans. Additionally, keeping previous accounts active also helps in improving the credit score of a borrower.

In addition to a drop in the CIBIL score, individuals can lose a significant amount of money and reputation if they become a victim of identity theft. So it is better to resolve such issues as soon as possible to reduce the severe negative impacts on different aspects.

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