CIBIL score is the most commonly used credit score in India. A high CIBIL score can help you in many ways, while a CIBIL issue can hinder your loan applications.
If you want to know how to clear CIBIL issue, you are at the right place.
CIBIL is short for Credit Information Bureau India Limited, also known as TransUnion CIBIL. The score generated by them is known as the CIBIL score, and it is the most commonly accepted credit score in India.
The CIBIL has been authorized by the Reserve Bank of India to collect information from various banks, NBFCs, and other lending companies to generate a score. It ranges from 300 to 900 and a higher score is considered better.
Generally, a score of 700 and above is considered good for most credit products. Here is a table that tells you about each score and what it translates to in terms of creditworthiness -
| CIBIL Score Range | Creditworthiness |
|---|---|
|
750 - 900 |
Excellent |
|
700 - 749 |
Good |
|
650 - 699 |
Fair |
|
600 - 649 |
Needs Improvement |
|
Below 600 |
Immediate Action Needed |
Whenever you take a loan and start making repayments, the bank or lender company sends information related to your payment behaviour to credit bureaus. Based on this information and their model of calculation, they generate a CIBIL score.
Sometimes banks or credit companies may make small errors while reporting repayments. Or there might be faulty hard pulls on your credit report. These things, if left unnoticed, will affect your CIBIL score negatively.
Thus, it is important to monitor your CIBIL score and report closely. In case you spot any errors, you should immediately raise a dispute and get it rectified.
If you spot any errors or extra inquiries on your CIBIL report, you can get it rectified by raising a dispute with CIBIL. This can be done online from the comfort of your home.
Check out the steps mentioned below to clear CIBIL problem -
STEP-1: Go to the official CIBIL website and create an account. If you already have an account, just log in using your credentials.
STEP-2: You will be able to see your report on the dashboard. Then go to ‘Credit Report’ and carefully go through each section of the CIBIL report.
STEP-3: Check the number of inquiries and see if some were not authorized by you. Check if all old loan accounts have the status ‘closed’.
STEP-4: Now click on the ‘Raise a Query’ button on the top right corner of the screen. Then click on the ‘Dispute an Item’ button.
STEP-5: On the next screen that opens up, choose the option depending on the section where you spotted an error.
STEP-5: Follow the steps to report the dispute and click on ‘Yes’ to confirm if you want to dispute the selected item.
STEP-6: After selecting all the items you want to report, click on ‘Submit Dispute’. You will be redirected to a page that will contain a summary of all the disputes raised by you.
Now CIBIL will get in touch with the bank or NBFC concerned for that entry and update the status. This process might take 45-50 days.
Please note that you should only report errors in your CIBIL. If an entry is authentic, you cannot get it rectified.
Another CIBIL problem that can affect your score is settled loan accounts or negative loan accounts. Here is how you can deal with such accounts -
Rahul had paid his loan completely but was not punctual with his payments. The bank ended up reporting him negatively.
Rahul still has ways to protect his CIBIL report or repair it. He is planning to wait till all the dues have been cleared and then he will draft a letter to the lender explaining why his payments were delayed.
He will make a polite request saying that he is a loyal customer and that he would be obliged if they could report him more favorably. While one cannot guarantee that all lenders will agree, it is worth a try.
In case there is an error on the part of your lender, you can simply raise a dispute following the process mentioned in the previous section. If the lender has made a mistake, they will correct it as soon as possible.
Please note that disputes may take up to 50 days to be investigated and acted upon.
If both the previous options don’t work, just remember that it takes about 1-2 years for negative accounts to stop affecting your CIBIL score. Continue making timely payments during that time.
CIBIL collects information from banks and lenders to generate your score. Errors in reporting are not common but may happen. You need to know how to rectify CIBIL score in case there is an error in reporting.
You must monitor your CIBIL score and go through the entries on your report at regular intervals. You can check your credit score for free in just 2 minutes using the moneyview credit tracker.
A bad credit score can hinder your loan applications and increase your rate of interest. Not having a good credit score will also impact your negotiations while applying for a loan or a credit card.
The good news is you can improve your CIBIL score with consistent effort and patience. However, in case you have a low CIBIL score and are in urgent need of funds, you can opt for instant personal loans from moneyview. Here you can get up to Rs.10 Lakh with a CIBIL score of just 650.
To know more or apply, visit our moneyview website or download the moneyview loans app.
No, it is not possible to erase a bad credit history. You have to make changes to your financial behaviour to improve your credit score.
No, you cannot pay to fix your credit score. All you can do is start paying your bills and EMIs on time and not apply for too many loans. If you have any settled loans, you can get in touch with lenders and pay to close the loan amount.
No, there is no way to reset your CIBIL score. It can only be improved through patient efforts.
Generally, CIBIL keeps records going back to 7 years from the current date.
You need to get in touch with your lender and say that you are unable to pay your dues. They will come to a middle ground about a nominal lumpsum amount. Once you pay that your loan will be settled.
It is not advisable to settle your loan amount as it impacts your CIBIL score negatively. What you can do instead is contact your loan provider and request to stop the EMIs for a few months, and pay the due fines. That way your CIBIL score will be impacted, but not as severely as a settled account can affect it.
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