Credit score is one of the main factors that help in determining your eligibility for credit. The lower your credit score, the harder it is to get a loan or credit card. On the other hand, a good credit score not only helps you in getting credit, but also opens the doors to attractive terms and conditions like low interest rate, high credit limit, etc.
The credit score is decreasing for this
During the Corona period, the government relaxed the EMI payment period. Those who do not pay EMI will not be considered as defaulters and their credit score will not be affected. Despite the RBI directive, many people’s credit scores have been affected. According to a report, financial institutions are not discussing this in the report of customers availing loan moratorium while reporting to credit bureaus, due to which they are being considered as defaulters and their credit score is falling.
What is the solution
If you are making all payments on time and are benefiting from the loan moratorium, then the credit score has decreased. If this is the case, you should get your report immediately and get it corrected. For this, mail it to the bank with ID. The reference number must be mentioned in the e-mail subject. Also, mention your complete information and the mistake that has been done. In this, do not forget to provide the contact number. The problem should be resolved within a week to a month. Complaints can be sent online to all credit bureaus. After doing this your credit score will definitely improve.