Credit report errors: How mistakes like wrong phone number will impact your credit score? 5 things you must do correctly

A wrong mobile number, incorrect loan details or a missed payment recorded in your credit report could affect how lenders assess your creditworthiness. Learn five essential checks, how to dispute credit report errors and ways to protect your credit score.

An incorrect mobile number, an incorrectly reported loan, or an unfamiliar credit inquiry in an individual's credit report can raise concerns about their credit profile. Now, it is a given that not every error directly lowers your credit score; incorrect information can affect how lending institutions assess an individual’s creditworthiness and may also indicate a risk of identity theft.

It is vital to keep in mind that an individual's credit report and credit score are entirely different. A credit score is a three-digit number provided by leading credit bureaus across the nation, such as CRIF High Mark, Experian, Equifax and TransUnion CIBIL. This metric typically ranges from 300 to 900, with a credit score above 750 considered excellent.

A credit report is a slightly different metric. It records an individual’s borrowing and repayment history, credit utilisation and other relevant details. Therefore, checking it regularly and correcting discrepancies is essential for maintaining an accurate credit profile, which in turn helps an individual maintain a high credit score that can come in handy when applying for new loans and credit cards.