Archive · 30 Aug 2026
Credit Report Mistakes Can Increase Loan Costs, Expert Explains
A credit report is like a report card about how someone has borrowed and repaid money.
Lenders use it to decide whether to approve loans.
They also use it to help set the interest rate.
Sometimes a report contains mistakes, even when a person has paid bills responsibly.
A mistake can make the person’s credit score look lower than it should.
This may make a loan harder to get or more expensive.
Common mistakes include wrong payment information, duplicate accounts, or another person’s loan appearing on the report.
Borrowers should check their reports regularly and challenge incorrect information.
They should keep documents such as bank statements and payment receipts to support their dispute.
Errors in a credit report can lower a borrower’s credit score and affect loan eligibility.
Common mistakes include incorrect payment histories, inaccurate balances, duplicate entries, and mismatched personal details.
Accounts belonging to another person or closed accounts reported as active can also damage credit scores.
Scores below 600 may lead to greater scrutiny and more expensive loans, while scores above 750 may attract more competitive terms.
Borrowers should gather supporting documents, dispute errors with the credit agency and lender, and follow up until corrections are made.
- Who
- Borrowers and individuals who use credit cards; Gibin John, Senior Investment Strategist at Geojit Investments Limited, provided the guidance.
- What
- The article explains how credit-report errors can reduce credit scores and make loans more difficult or expensive to obtain.
- When
- Borrowers are advised to monitor their credit reports regularly and dispute errors promptly.
- Where
- In borrowers’ credit reports and with the relevant credit-reporting agency and financial institution.
- Why
- Incorrect information can distort lenders’ assessment of creditworthiness, affecting loan approval, interest rates, and other terms.
- Expert
- Gibin John, Senior Investment Strategist, Geojit Investments Limited
- Possible impact
- Credit-report inaccuracies may reduce a credit score, affect loan eligibility, and increase borrowing costs.
- Common errors
- Name or address mismatches, incorrect payment histories, inaccurate balances, duplicate entries, and closed accounts shown as active.
- Other-person accounts
- A loan belonging to someone else may incorrectly appear on a borrower’s report.
- Lower-score threshold
- A score below 600 may result in deeper scrutiny and hard checks.
- Higher-score reference
- A score above 750 may support access to more competitive rates and terms, depending on the lender and other financial factors.
- Correction process
- Collect supporting evidence, dispute the error with the credit-reporting agency and lender, and follow up on the dispute.