How to Clear CIBIL Problem

Imagine having a credit score that is over 750. Life is a lot easier. You can get loans or any type of credit easily and at a rate of interest that is on the lower side, you can avail yourself of any credit card you wish for, and you are considered to be a responsible borrower.

The largest credit information company in India, TransUnion CIBIL maintains an extensive database of consumer information and provides CIBIL scores to individuals based on their credit reports. A CIBIL score between 700 to 900 is considered to be ideal.

However, not everyone has a high CIBIL score, and sometimes knowing how to clear CIBIL problems or how to remove settled status from cibil or issues related to your CIBIL score is important. On this page, we will explore some of the common issues related to CIBIL scores and what you can do to overcome them

Issues Related to CIBIL Credit Information Report (CIR)

Your CIBIL score and CIR play a very important role when it comes to applying for loans or credit cards, therefore staying aware of your score as well as the information in your CIR is important. However, there are chances wherein the CIR has certain errors. Checking and correcting this at the earliest is important as these errors result in a low CIBIL score.

Steps to Correct Errors in CIBIL Report

The good news is that errors in your CIBIL CIR can be corrected by following the steps given below:

  • Firstly, visit the official website of CIBIL or click here and purchase your CIBIL score and credit report if you have not already.
  • Check the report thoroughly for errors by looking at the areas mentioned below:
    • Check the number of open accounts that are in the report. If an account has not been reported as closed by the lender or if there are open accounts that are not yours, you can follow CIBIL’s dispute resolution process to correct the same. This step is important as open accounts essentially overstate your credit exposure and lead to lower credit scores
    • Next, check the status of your accounts. If an account is "written off’ or ‘settled’, it can be viewed negatively. Ensure that you try to build your credit score by following healthy financial habits. However, if this information in your report is incorrect, you can raise a dispute
    • Thirdly, check the payment history of each account. If you have missed payments, ensure that they are cleared at the earliest.
  • Customers must note that the information given in their CIBIL report is a reflection of all the financial transactions made by them. However, if any piece of information is incorrect, they must get the same rectified at the earliest by raising a dispute with CIBIL

Issues Related to Low CIBIL Score

Having a low credit score is not the end of the world as it can be increased by being financially disciplined. There are multiple factors that contribute to low CIBIL scores. One reason could be because of defaulting on loan payments. This could be due to defaulted or missed payments, disputes with lenders due to fees or charges imposed, or even disputes due to fraudulent transactions.

Defaulting on loan payments is one of the major reasons for a low CIBIL score. If you are unable to repay your loan due to emergencies or other financial hardships, having a conversation with the lender may result in an extension of your repayment tenure or a moratorium making it easier to repay the said loan. But the priority must always be to repay the loan at the earliest. Overcoming CIBIL problems of this nature is dependent on your financial behavior. Ideally, borrowers must avail of a loan only when they know that they can repay it over the course of the payment tenure. Every effort must be made to ensure that a loan is paid back in full as doing so will help increase your credit score over time. For a more in-depth guide on how to increase your CIBIL score, check out our article on the same.

In case of disputes with lenders or fraudulent transactions, the related issue can be escalated directly with the bank and does not involve CIBIL in any way. Reading all the terms and conditions of the loan and the fees charged is necessary to have a seamless loan borrowing experience. This is also the case with personal loans.

In conclusion

Having a high CIBIL score is not rocket science. It involves careful financial management and responsible loan/credit repayments over time. While CIBIL problems can be related to low scores due to errors in the CIBIL report or even due to your financial behavior, understanding the issue and finding the right solution is important. Low credit scores are a disadvantage but the good news is that they can be increased over time.

For individuals with low credit scores, getting a loan is not easy but there are a few reputed lenders in the market today that cater to them. Money View, one of the top lenders in the country determines the eligibility of an individual by its own unique credit scoring model and therefore provides personal loans at competitive rates even to those with relatively low credit scores. The best part is that the entire process is digital and the loan is disbursed within 24 hours. If you are looking for a personal loan that is easy to avail of, check out Money View today.