Fixing the Financial Puzzle: Correcting Errors in Your CIBIL Report

Can you recall the last time you checked the credit score or went through your credit report?

Possibly, you do not. Or maybe it was when you had last applied for a credit product like a loan or your credit card.

CIBIL scores range from 300–900. A decent credit score (considered to be higher than 750) bolsters the chances of getting a credit card or loan and also helps in securing a lower loan interest rate.

India has four major credit bureaus. These are CIBIL, CRIF High Mark, Experian, and Equifax. All of these use proprietary algorithms and advanced credit scoring models. However, you need to be aware that credit score is likely to vary across these bureaus and the difference in credit scores could be in the 50 to 100-point range.

You can receive a free credit report from each of these bureaus in one calendar year — but the pertinent question is — is this enough? 

We would highly recommend you check your credit report regularly even every month if possible.

Reasons to check your credit report regularly

1. Stay Updated On Creditworthiness

Having a high credit score is one thing. Maintaining the same is yet another aspect altogether.

If you are applying for a loan or a credit card, one of the first things any lender will do is check your credit score to determine your creditworthiness. Recently, several employers associated with the financial sector have also started seeing creditworthiness as a parameter in the recruitment process.

Checking your credit report every month helps stay updated on the credit status, current balances, and immediate payment history, and highlights credit information a potential lender can view.

2. Identify Errors Faster

When applying for a loan or credit card or even later, the financial institution shares all personal information with the credit bureau, besides necessary details of the credit product you are opting for.

If there is an error in the information provided by the lender, it can harm your credit score — it could be a simple spelling error in the name or an erroneously reported default on payment or a loan/credit card that you have never applied for.

Staying up to date with the credit report each month helps alert you to errors faster, and you can also raise a dispute with the bureau and the financial institution to get the errors fixed.

3. Make More Informed Decisions When Applying For a New Credit

When applying for a loan or a credit card, a financial lender is mandatorily going to fetch your credit score as well as the credit report from the bureau. This is a hard inquiry and impacts the credit score on each of these occasions. 

If you typically check your credit report monthly, you will be more empowered and able to make informed decisions and can also work on first to improve cibil score, and applying for any new credit product.

Top Tips to Identify a Credit or Loan Fraud

Check Your Credit Report Regularly

This holds even if one has been making the payments on time. The more regularly you track it, the faster one can catch a sudden drop in their score or an erroneous/fake entry in their payment history.

Users can use a platform of their choice for regular credit score supervision; however, most are going to charge the user after 1 or 2 pulls of their credit report. However, OneScore is a simple app that permits users to check and improve their CIBIL score and the best part — they allow it for free.

Raise a Dispute If You See Any Wrong Entry

As you may be aware, there are several bureaus in the country, but for this post, let us assume that the score drop or the erroneous entry is related to the Experian score. You have two options – directly visit the official Experian website or open or download the OneScore app and follow the procedure of reporting any wrong entry.

Follow Up On Your Raised Dispute

The job does not end after the reporting, unfortunately. Keep in mind that the resolution can take up to a few weeks to some months as the organization will first need to check the genuineness of the claim. Once done, the user will get notified that their dispute has successfully been resolved and that the incorrect loan or the error has been omitted from the report.

Be proud of being a financially educated customer who checks their CIBIL score as well as their check credit report regularly and makes others aware, too! 

Make Sure To Regularly Keep a Tab on the Wrong Entries in Your Credit Report

Genuine or fake — all kinds of loans are listed in a credit report.

Even fraudsters do not have a way to manipulate a report to their benefit. So, the best thing to do would be to download OneScore or similar apps today and make it a habit from now on to check your credit report month on month, and make sure your financial life is on track.

How to Raise CIBIL Dispute for a CIBIL report correction?

• Check the credit report on CIBIL’s official website or OneScore.
• Review it thoroughly for errors or any kind of discrepancies.
• Collect the supporting documents.
• Login to CIBIL. Submit the dispute form with all relevant details and attach supporting documents.
• Follow up with CIBIL for updates.
• CIBIL is going to investigate and update the report if errors are seen. 

Conclusion: FAQs

How can someone dispute a CIBIL score?

To raise a dispute on CIBIL, one needs to log in to “myCIBIL”, then head on to the “Credit Reports” and choose “Dispute Center.”

Provide the details of the desired dispute item.

Can a bank help rectify the CIBIL score?

Banks are not able to rectify or change any credit score directly. The user has to first raise a dispute with the credit information firm.

How can one get rid of the negative impact on the CIBIL score?

Check the credit report thoroughly for identifying errors/discrepancies. Raise a dispute with the credit bureau and keep supporting documents, such as loan closure letters, and payment receipts, handy.

How can one remove CIBIL’s written-off status? 

Discuss the chances of settling debts with the lender. Offer a lump sum payment or try to propose a well-planned repayment plan that’s easy and practical. Once a settlement deal has been reached with the lender, make the agreed-upon payment right away. 

After making the payment, the user must request a No Due Certificate or a final closure letter from their financial lender. If this “written off” status was reported as an error, they can raise a dispute with the credit information major.

How to keep track of the CIBIL dispute status? 

It is easy, one has to check the CIBIL dispute status by logging into CIBIL and heading over to the ‘Dispute Status’ section. CIBIL also notifies about the status of the dispute via email.