30-Mar-2017 written by : FSI-Team
CIBIL- The Credit Information Bureau India Limited, aggregates the credit information provided by various banks and financial institutions and records them in an individual's CIBIL report. This report has a complete history of your payments, account usage and outstanding balances. It serves as a basis for the calculation of the CIBIL score. Since banks gauge the repayment capability of an individual on the basis of a CIBIL score, it is necessary to ensure that the information in the CIBIL report is up to date and accurate.
It is very likely that the financial institution may hold incorrect data relating to your credit. If this faulty data is passed on to the credit information companies, your credit report will have errors. Such errors often lower your credit score and reduce your chances of loan approvals. Hence even if you maintain good credit behaviour, these errors can damage your credit profile and lower your CIBIL score for no fault of yours.
Here is how you can deal with the errors in your CIBIL report.
Order your CIBIL report and understand it properly. A periodic review and careful analysis of the CIBIL report will bring to light any discrepancies that might be harming your score. Now you can even obtain a free CIBIL report once a year. A timely identification will give you enough time to seek resolution. This will ensure that you are fully prepared whenever you need to apply for a new loan in future. Some common errors that you must look for in the credit report include incorrect personal information such as name, date of birth, address, contact information; account details and type of loans; errors in outstanding balances and credit limits.
Incorrect personal details or erroneous information regarding outstanding dues and payments can be easily corrected. CIBIL has an online redressal mechanism for handling such disputes. If you notice such errors you need to bring it to the credit agency's attention immediately. You can send them an email but you also need to submit your request for rectification by filling an online dispute resolution form. This form can be easily downloaded from the CIBIL website. You need to specify the control number (a 9-digit number that is mentioned on the top right hand corner of credit report) to help CIBIL identify the report for which the dispute is raised. Mention the exact mistake for which you are raising the dispute. It is good to provide evidence in the form of documents or other information which proves how the information in the report is inaccurate. Such evidence will support your claim and help in getting the dispute resolved faster. Once the form is submitted a dispute ID will be provided that can be used for future reference.
Once CIBIL receives the customer request it forwards it to the concerned lending institution for verification. CIBIL does not make any changes in the report on its own. It is the lending institute that investigates the claims and determines whether the information is actually erroneous. CIBIL is only a custodian of the information that it receives from the lending institutes. It is only when the lending institution authenticates the request and confirms that the mistake was indeed committed, CIBIL rectifies the information in the report and notifies you via email. You can expect a response within 30 days of submitting the request. But the actual time depends upon the time the lending institution takes to revert back with the relevant information. Once you receive the email you can check the credit report again to verify whether the changes have been made.
If the errors in the report relate to your own loan or credit card accounts they are easier to resolve. But if the error relates to a mistaken identity where someone else's loan accounts appear in your report, then the dispute resolution may go upto 60 days.
CIBIL report errors may cost you dearly if they are not caught in time and duly rectified. Hence it is important for you to check your credit report periodically and know how to correct them in case there are discrepancies. Follow the steps suggested above and you will be able to get the errors corrected. It will save you from unnecessary hassles when you are about to avail a loan.