Sometimes the questions are complicated and the answers are simple Dr. Seuss
06-May-2016 written by : FSI-Team
You have recently found out that the personal loan you were banking on has been declined. Perhaps, your crooked CIBIL report played a role in it. While a rejected loan application is disquieting in itself, the idea of reforming your CIBIL report may bedevil you even more. Loosen yourself up because here’s the good news. This self-help guide will walk you through on how you can have your report fixed and set it straight.
The information in a CIBIL report is compiled using data received from various member lending financial institutions such as banks. This report is extracted from source every time you apply to use a credit facility like a small personal loan. Based on the details mentioned in your report, the lender adjudges your credibility. A healthy credit report helps the borrower ask for better loan terms and lower rates of interest.
If you find any information that is amiss, inaccurate or unfamiliar on your report then you must immediately raise a CIBIL dispute. It’s easy to do so. You can go to www.cibil.com and complete the dispute resolution form. Upon receiving your request CIBIL contact’s the relevant lender in question to verify the information. If the dispute is resolved in your favour then the report is updated or else the information remains unaltered. The entire resolution process takes about 30 to 45 days. Your report houses data for past 24 months only. So any information that appears on it, unless false will live on it for atleast 2 years or more depending on the frequency of updates on that account.
We shall now examine section-wise on how updates are brought about.
No matter how displeased you are with your score, you cannot dispute it. You can work to improve cibil score, but you cannot ask CIBIL or your lender to change it. Your score is the numerical representation of your previous and on-going debt accounts information captured in your report. Your score is automatically adjusted every month to reflect the updates in your report.
This section reflects your name, age and contact details like address, phone number and email address. You must raise an alarm even if there is a small spelling mistake. Corroborate your claims with relevant documentary proofs. In this event either CIBIL will get in touch with the lender directly or guide you to the credit institution who submitted the data. You must then approach the credit institution and ask them to make the respective changes and send an update to CIBIL.
Employment information on your credit report cannot be updated as per your whims. Since all CIBIL data updates have to be routed through member lending institutions, thus only when you apply for a new credit account and enter new employment details in the application form will they reflect in the report, thenceforth. One shouldn’t be much worried about this column because it is used more as an identification tool than a record for maintaining employment history. Hit the buzzer only if you find employment information on your report that you do not identify. It could signal an identity theft.
This is, beyond doubt, the most important section of your report. It holds the records for your payments to your loan and credit card accounts, type of accounts, ownership – single or joint, total credit limit, outstanding balance, amount due every month etc. Some of the common errors are:
A ‘closed’ account still reflects as open – If the account was closed by the lender, it should automatically get updated as such. However, if it does not then you must contact CIBIL and attach the “no-dues” letter with it. Then, ask your lender to send the correct report to CIBIL. After that, it is just a game of patience before the report is updated.
Your outstanding should reflect as “zero” – Don’t push the panic button as yet. To ensure this, first pay off all your existing debts in full. Then refrain from adding any charge on your cards for a full billing cycle. This way the lender’s own records will show a zero balance. This data will be sent to CIBIL and your records will be updated.
Hard Inquiries, especially if there are quite some many, can hurt your score miserably. Your report is highly confidential and no one can see it without prior permission from you. When you apply for a loan, you authorise the lender to seek your report from CIBIL and view the information given in it. When the prospective lender, as part of the loan application screening process, withdraws your report it is recorded as a “hard inquiry”. Too many inquires makes you seem craving for credit.
It would be improper on your part to dispute any legit inquiries. They will not be removed in any case. However, you must press the buzzer if there are inquiries that you have not authorised. The lender in question will have to prove that you had authorised the inquiry, supposedly produce a paper you signed. In the absence of that, the inquiry can be removed. More often than not, it indicates that someone has applied using your information that is, a case of identity theft.
Experts advise that one must wait for atleast 60 days for the update to reflect in the credit report. This gives a lot of room for new information to appear in your report. It also means, your score would have adjusted according to the new information and would now be reflecting update. If you find the report has not been updated then either the dispute has not been resolved or the credit institution has not complied. You could contact the lender directly and ask for a speedy action or write to CIBIL enquiring about it.
Recently, CIBIL has also added an additional section in the reports as “Consumer Dispute Remarks”. These can be added by the consumer or the borrower to let the credit institutions know on why a dispute was raised. They will be there on the report for atleast a year.
To err is human and it is only people who handle, update and verify thousands of records on a daily basis. It is not uncommon to find an error in your report. But it’s all a storm in a teacup so don’t be so anxious about it. While it’s crucial to put the record straight, one must remain calm and follow the simple procedure to have it rectified. Incase of doubt get in touch with one of the credit repair companies to help you raise disputes and guide you on the process. Allow yourself time before you recheck on your report to make sure the updates are done.
CIBIL is not authorised to make changes to the CIBIL report based on requests received from individuals. It can only verify information from the lender at the request of the borrower and update data it receives from the lender.
Finally, read all documents carefully before you sign on any of them. And even if you are not looking to apply for a loan in the near future, do check your report at least once a year to avoid any last minute surprises.