Why Actively Monitoring Your Credit Reports from All Bureaus is Essential

[SmartSave]

I'll keep this short but until recently, I used to just monitor my CIBIL reports actively with a paid subscription.

Few days ago, I wanted to check out other reports to see what's different. Most of them had the same information which seemed fine until one unknown enquiry I came across in Experian Report made 1 year ago by Punjab National Bank for 10L Auto Loan which was never applied by me with this bank. That came as a shocker.

I dropped an email straight to the PNO of PNB demanding them to remove the unauthorized enquiry immediately or I'll escalate this to RBI. Few days later, they responded saying it has been removed (Yet to reflect on my report but will probably check in a month to see).

While the enquiries itself might not have high impact, I still prefer keeping my report clean from such unknown enquiries. If I've applied and gotten rejected for some product, that's another case and it's understandable since everything was done with my knowledge and consent but these kinda unauthorized enquiries should not be ignored.

So the learning is, consider monitoring all other reports too from time to time, if not actively.

 

[Abhishek20]

Why is "actively monitoring" required? Won't they have removed it if you had complained about the same few months down the line?

 

[SmartSave]

Why is "actively monitoring" required? Won't they have removed it if you had complained about the same few months down the line?

I said actively monitoring in general sense, not for a particular case. If you monitor regularly like say every month once at least, you'd know what are the new changes like your score, profile information changes, reports, enquiries, and so on.

CRED for example had a typo in my name reported in CIBIL. I got that fixed.

Similarly I've had ICICI remove a duplicate credit card enquiry. Most of these are on CIBIL but this was my first time checking Experian Credit Report.

So yes, you should definitely monitor regularly. You ignore, any of these financial institutions can damage your reports and you'd have no idea why you've been getting rejected for whatever you had applied all this while.

 

[Trust Me]

How does one go about removing all the obsolete addresses, phone numbers and such other stuff accumulated over the years in all the credit reports?

 

[SmartSave]

How does one go about removing all the obsolete addresses, phone numbers and such other stuff accumulated over the years in all the credit reports?

You can't. The whole point of having these in your report is for the financial institutions to know your background/history.

Why is that bothering you anyway?

They don't impact your credit score.

 

[akshayhs]

This is one of the many reasons I pay for a subscription for at least 3/4 bureaus is to let me constantly know what is happening with my credit bureau accounts. I just make it an annual expense for all these transactions and I make sure it is renewed timely. The peace of mind from accessing it whenever I want and the latest report every time is extremely convenient in case something unexpected takes place, and it is a given with the bank employees doing mistakes without any consequences to them.

 

[SSV]

I'll keep this short but until recently, I used to just monitor my CIBIL reports actively with a paid subscription.

Few days ago, I wanted to check out other reports to see what's different. Most of them had the same information which seemed fine until one unknown enquiry I came across in Experian Report made 1 year ago by Punjab National Bank for 10L Auto Loan which was never applied by me with this bank. That came as a shocker.

I dropped an email straight to the PNO of PNB demanding them to remove the unauthorized enquiry immediately or I'll escalate this to RBI. Few days later, they responded saying it has been removed (Yet to reflect on my report but will probably check in a month to see).

While the enquiries itself might not have high impact, I still prefer keeping my report clean from such unknown enquiries. If I've applied and gotten rejected for some product, that's another case and it's understandable since everything was done with my knowledge and consent but these kinda unauthorized enquiries should not be ignored.

So the learning is, consider monitoring all other reports too from time to time, if not actively.

This is one of the many reasons I pay for a subscription for at least 3/4 bureaus is to let me constantly know what is happening with my credit bureau accounts. I just make it an annual expense for all these transactions and I make sure it is renewed timely. The peace of mind from accessing it whenever I want and the latest report every time is extremely convenient in case something unexpected takes place, and it is a given with the bank employees doing mistakes without any consequences to them.

+1,
I completely agree with this 💯💯..
I have premium subscription to all the four bureaus. In fact I wrote a brief experience of all these bureaus in a post under credit score sub forum

 

[Trust Me]

You can't. The whole point of having these in your report is for the financial institutions to know your background/history.

Why is that bothering you anyway?

They don't impact your credit score.

I know they don't affect my credit score. By the same token such obsolete stuff don't serve any purpose whatsoever anymore, and so, should be removed. What value could such obsolete history (like old phone numbers or addresses) possibly have to current lenders?!

 

[LIIT]

He obviously wants to write "trust me" on his loan applications 🤷

Why is that bothering you anyway?

 

[LIIT]

I know they don't affect my credit score. By the same token such obsolete stuff don't serve any purpose whatsoever anymore, and so, should be removed. What value could such obsolete history (like old phone numbers or addresses) possibly have to current lenders?!

Chalo for argument's sake. Imagine you're a buffed up bouncer turned NPA recovery agent sent behind a defaulter.
You only have their latest address and mobile number. (Obviously it turns out to be fake/nonexistent/rented)
Whatchu gonna do?

 

[SmartSave]

I know they don't affect my credit score. By the same token such obsolete stuff don't serve any purpose whatsoever anymore, and so, should be removed. What value could such obsolete history (like old phone numbers or addresses) possibly have to current lenders?!

1. Stability Assessment: Examining the history of addresses and phone numbers allows creditors to gauge the stability of an applicant's lifestyle. Frequent changes in these details may indicate a transient lifestyle, potentially suggesting instability in employment or residence. This is essential in assessing the risk associated with lending to such individuals.

2. Identity Verification: A thorough record of addresses and phone numbers helps in verifying the applicant's identity. In an age where identity theft is a growing concern, having access to an extensive history of personal details aids in confirming that the applicant is who they claim to be. It can also uncover any attempts at fraudulent applications.

3. Fraud Detection: Creditors can use the historical data to detect patterns of suspicious behavior or fraud. For example, an applicant who consistently changes addresses or phone numbers may raise red flags, prompting further investigation to ensure the legitimacy of their application.

4. Loan Recovery: In the unfortunate event of default, having a comprehensive history of addresses and phone numbers becomes invaluable. It provides creditors with more options for locating the borrower and attempting to recover the debt. This is particularly important when dealing with borrowers who may deliberately attempt to evade repayment.

5. Behavioral Insights: The history of addresses and phone numbers can reveal behavioral insights about the applicant. For instance, a sudden shift from a stable address to a string of temporary residences might indicate financial distress or lifestyle changes. This information can inform the lender's decision-making process and tailor financial products accordingly.

6. Enhanced Risk Assessment: A complete record of personal details contributes to a more accurate risk assessment. Lenders can create more precise risk profiles based on an applicant's history, helping them determine appropriate terms, interest rates, or credit limits. This ultimately benefits both the lender and the applicant by aligning the terms of the credit with the individual's risk profile.

Despite all this, people still game the system by furnishing fake job details in cases of applying for credit cards, inflated salary numbers, and mislead financial institutes. That is why they demand a combination of documentation with credit reports to evaluate an application for various purposes. Otherwise, they could've just relied upon the information they can already fetch from credit bureau or income tax department alone. The past and the present can help to predict the future and the risks involved to approve such an applicant as well as to offer personalized deals.

Someone who resides at a high risk zone while still having a good score may not get the same ROI/approval than someone who resides at a pin code which has lower risk score in general with less credit score.

Edit:
Scenarios:
1. Imagine the applicant says they've been residing at this current address for the last 10 years and it's their permanent address while the credit report indicates the applicant has had moved to different locations in the last 10 years. What you think that indicates? It's a simple scenario.

2. The applicant applies with their new identity (Name changed, phone number changed, new address) -- We're not talking about typo or minor change here. The history can help to evaluate further as to what's going on. Although, a one time change itself doesn't imply of the applicant being a fraudster but if it's a frequent pattern, then there's definitely something fishy with such an applicant.

 

[Trust Me]

Scenarios:
1. Imagine the applicant says they've been residing at this current address for the last 10 years and it's their permanent address while the credit report indicates the applicant has had moved to different locations in the last 10 years. What you think that indicates? It's a simple scenario.

I have had two genuine addresses from two different towns, -- one permanent, and the other that kept changing several times over 10 years in another town, all showing up from different lenders. What does that indicate?

 

[SmartSave]

I have had two genuine addresses from two different towns, -- one permanent, and the other that kept changing several times over 10 years in another town, all showing up from different lenders. What does that indicate?

As long as one address is permanent and you've furnished its details to the lender + current address, that's good enough. It indicates you have a permanent base the lender could locate you if you happen to move again somewhere due to your frequent current address changes (depending on whether you're a salaried applicant/nature of work or self-employed/nature of work) but if none is permanent and you're always on the go, then it's probably a bad sign (ofcourse that's not the only parameter but would be one of several that would contribute in evaluating your application for whatever).