New Delhi, Dec. 19 -- A credit report dispute is a formal process that allows credit account holders to rectify mistakes and inaccuracies in their credit reports. Since lending institutions and banks depend heavily on credit reports to analyse personal loan and credit card applications, even minor errors can negatively impact one's creditworthiness.

That is why raising a dispute helps in ensuring that one's credit profile accurately reflects their financial reality.

To put it simply, one's credit report is a detailed record of their borrowing and repayment potential. This report includes personal information, loan and credit card accounts, past payment behaviour and lender inquiries.

A credit report dispute or discrepancy arises when a...