Worried about hidden loans? Here’s how to check what’s active in your name

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• Check your credit report yearly to spot unknown loans or errors
• Monitor bank accounts and SMS alerts for unusual loan payments
• Report any unknown loans to credit bureaus and banks immediately

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Many individuals believe they are aware of all the loans associated with their name, but this is not always true. With the increasing number of identity theft cases and online lending, it has become necessary to check your credit reports periodically. An unknown loan can negatively affect your credit score, limit your ability to borrow money, and cause unnecessary stress. The good news is that checking for outstanding loans is simpler than most people believe.

Check your credit report regularly

The easiest and most effective way to check all the loans associated with your name is to check your credit report. Credit reporting agencies such as CIBIL, Experian, Equifax, and CRIF High Mark keep track of your lending history. Your credit report holds a full list of your open and closed loans, credit cards, and your repayment history. It is always a good idea to check your credit report at least once a year to see if there are any errors, such as a loan that you do not know about or an error that could affect your credit rating.

Check your bank accounts and SMS alerts

The repayment of loans is usually done automatically from your bank account as EMI payments. This is why it is important to check your bank accounts to see if there are any payments that seem out of the ordinary. Banks and other financial institutions also send alerts to your emails or SMS when a loan application is approved or when a payment is due. Not responding to these alerts could mean that you miss important warnings about possible identity theft.

Make use of online banking and loan websites

If you have availed loans from banks or have registered non-banking financial companies, their websites will show you the list of loans that you have taken. You can log in to your net banking account and check the loan status section to get information about the loans that you have taken.

Visit your bank branch if you are unsure

If you are not sure about any information in your credit report, you can visit your bank branch. The bank representatives can verify whether the loan is actually linked to your identity or whether it is a matter of misreporting. You should bring your identity documents along with you and obtain a written explanation if necessary.

Report disputes immediately

If you find any loan that you have not taken, you should not wait to report the dispute. You should immediately report the dispute to the credit bureau and also write to the concerned bank. It will help you prevent any further damage to your credit score. You can also file a complaint with the police in case of identity theft.

It is important to be aware of your credit report. It is a simple and effective way to protect your reputation and ensure that your financial report card shows only what is actually yours.