In India, an organisation that provides credit reports is called CIBIL, or Credit Information Bureau Limited. When the records of a person’s payments for loans and credit cards are compiled, a CIBIL Credit Report—which is a chronicle of your credit history is created. A bank or other financial institution will review the CIBIL score after it has been calculated. A good score is defined differently by each bank or credit institution.
Rectification of CIBIL report errors is important to maintain a healthy credit profile and a good CIBIL score. If they are not rectified in time, it can lead to a bad CIBIL report with low CIBIL score. This could result in outright rejection of your loan application or higher rates of interest, shorter repayment tenure, etc. Let us look at CIBIL report errors/problems along with their solutions.
1. Error in your CIBIL Credit Report
Errors on your CIBIL report might be as trivial as a misspelling of your name or address. Though this may appear to be a simple blunder, it can have serious consequences. Another type of damage you might sustain is from a mistaken identification, such as finding someone else’s loan data in your report or an overdue amount on a loan that you did not accept. These tiny mistakes will significantly lower your CIBIL score and may possibly result in the rejection of your application.
Errors that may arise in the CIBIL report
- Incorrect current balance
- Incorrect overdue amount
- Incorrect personal information
The first step in solving the problem is obtaining a copy of your CIBIL credit report from CIBIL.Analyze the mistakes once you have access to the reports, then file a dispute by using the dispute resolution form that is available on the CIBIL website. When submitting a dispute resolution, one is required to include their name, residence, date of birth, and control number.
2. Errors in Personal or Account Details
Check your CIBIL report on a regular basis for clerical issues such as a misspelt name, an incorrect date of birth, or typographical errors in the address. Major mistakes, on the other hand, might be the result of a mistaken identification. Both significant and little faults might lower your CIBIL score and cause your loan application to be rejected.
- Get a free copy of your CIBIL report and double-check it for any inaccuracies.
- Once you’ve identified the error(s), you can file a dispute by completing the online CIBIL dispute resolution form.
- CIBIL will check all of your information, and any inaccuracies will be addressed in your revised CIBIL report.
3.Days Past Due (DPD)
The number of days that a payment on that account is late that month is indicated as Days Past Due. The lender considers anything other than “000” to be negative. If your DPD is anything other than ‘000,’ it means you haven’t met your financial responsibilities, which might reflect negatively on your financial record.
The greatest method to avoid unfavourable DPD is to pay your payments on time and avoid incurring large, unneeded debt in order to meet your financial responsibilities without difficulty.
4.Poor Credit History
A CIBIL report with a low credit score suggests reckless credit behaviour in the past, which may limit your ability to obtain extra credit in the future. Frequent repayment delays and defaults, a high credit usage ratio, default on loans/credit card debt, and so on are some of the primary causes that might result in a poor CIBIL score being shown in your CIBIL report.
- Pay your credit card bills and EMIs on time.
- Avoid making minimal payments or paying off your obligations.
- Examine your CIBIL report and score on a regular basis.
- If there is any erroneous information or an inaccuracy in the report, you must immediately file a dispute with CIBIL.
- If you are unable to make your payments on time, try to negotiate an alternative repayment plan with your bank or financial institution, such as loan restructuring.
5. Even for paid-off accounts, CIBIL Report indicates overdue
Even if you have made all of your previous repayments on time, your CIBIL report may still reflect an outstanding balance that has already been paid in full or payment history defaults.
- Every 30 to 45 days, lenders send information to CIBIL, and if you obtain your CIBIL report within 45 days of paying off your debt or closing your accounts, CIBIL records may not have been updated.
- You can get in touch with the credit institution and ask them to update the information on their records and submit the revised information to CIBIL so that it can be updated on the report if it has been more than two months since the lender last provided the data related to that account.
- When it comes to checking the credit information provided by lenders, CIBIL has no liability. Your claim will be checked and, if necessary, updated on the report if there are any problems or discrepancies, you can register a challenge utilising CIBIL’s dispute resolution procedure.
Loan Rejections and Disputes – FAQs
Can CIBIL amend or delete any data in the CIBIL Report, or can it make corrections to the data?
Direct changes to your CIBILReport cannot be made by CIBIL. Your CIBIL Report can only be changed if the applicable Credit Institution has approved the change and submitted the necessary information.
Why am I not allowed to submit more than one sort of dispute for a certain account or inquiry?
You have the option of contesting account ownership or a query’s fields.
It is irrelevant to contest other fields if you have already contested ownership (the account does not belong to you).
It is not appropriate to dispute ownership if you are contesting the field for a specific account or inquiry that belongs to you.
When I raise a disagreement, what does CIBIL do?
After receiving your dispute submission, CIBIL will review it internally and forward it to the appropriate credit institution. In the event that the CI replies to the dispute request, CIBIL will update the modifications immediately and send you an email to let you know the status.
What if I’m not happy with the dispute’s outcomes?
You may decide to speak with the relevant Credit Institution (CI) directly. Alternately, you can start a dispute request once again, and we’ll check it again with the appropriate CI. Please take notice that without the consent of the relevant CI, we are unable to make any modifications to your CIBIL Report.
What steps will be taken by CIBIL if the CI does not settle the disagreement within 30 days?
Without permission from the appropriate Credit Institution, CIBIL is unable to change any data in the database. Our automatic system will send the bank or CI a reminder every day until the disagreement is settled.
When the bank responds to the disagreement, how long does it take CIBIL to update the information?
We promptly update our records whenever we receive the updated data from the Credit Institutions (CI).
My report is not complete. Can CIBIL add details to my report?
Your CIBIL Report cannot have any additional information added directly by CIBIL. The information in your CIBIL Report is what Credit Institutions have reported to us (CIs). The responsibility for providing comprehensive and correct data to CIBIL rests on the CIs. Accurately collecting and updating this data among CI’s is the duty of CIBIL. To submit the missing data to CIBIL, kindly get in touch with your creditor.