Having a good CIBIL score is extremely critical. After all, it works as a deciding factor for banks and financial institutions while providing you with a loan or a credit card. That’s not to say it’s perfect, though. Sometimes, you might receive a wrong credit score or there might be a mistake in your CIBIL report. It is really not impossible to correct CIBIL report mistakes if you know exactly when and how to resolve them, but it is always recommended to check your credit score well in advance as there is no way you can correct the report at the last minute.
Even after you spot the errors in your CIBIL report, it might take a while for the organization to resolve your dispute as they have a certain set of standard procedures to follow.
How to spot CIBILReport errors
The error on your CIBIL report card can be either a minor one, such as a misspelt name, wrong date of birth, etc., or a major one, such as a wrongly credited loan or an outstanding credit balance. The minor ones are small mishappenings that can be resolved quickly without a lot of hassle.
On the other hand, major issues could pose a serious problem, especially if you have applied for a loan or a credit card.
You first need to download the CIBIL report from the CIBIL website and should look for possible errors such as:
- Inaccurate personal information
Sometimes, your personal information on the CIBIL report such as name, age, contact information could be either misspelt or missing. While going through your report, you have to make sure all the details entered are correct. You should also verify if the entered Aadhar number or PAN number is correct.
- Current balance not updated
One of the most common mistakes on your CIBIL report is outdated current balance information. This is because there is always a gap between the payment time and submission of your credit history to CIBIL, and as a result, these errors occur.
- Incorrect overdue
Overdue is the amount that you owe your credit card provider or your loan. There are possibilities of wrong mentions of your overdue. Due to their ability to damage your credit score, it is vital for you to double-check your overdue amount, always.
- Outstanding loans
You must check for your outstanding loans and the amount that needs to be paid. If the loan has been cleared and your CIBIL report says otherwise, you will have to file a complaint immediately. To have a good CIBIL score, you must always make sure you avoid debts.
- Duplicate account
There is a slight possibility of more than one account registered in your name. If you are not the account holder of those accounts, you must consider the issue to be serious as it’s transactions might impact your credit score.
In general, you should look for incorrect figures of amount, incorrect dates or due dates and must ensure that the information present in your CIBIL report is correct. By cultivating good financial habits, you will be able to avoid unnecessary overdue and loans.
How to correct CIBIL report errors
There are a few general steps that need to be followed to correct a CIBIL report error.
- The first thing to do is to log on to their website and fill the online dispute form. Make sure you mention the control number or a 9 digit identification number. It helps CIBIL recognize reports with errors.
- Recognize the type of error and provide information about it. You should make sure the information you are providing, such as your name, contact information, PAN number, is correct.
- Once your dispute is successfully submitted, the CIBIL will forward your request to the concerned lenders. Once your lenders give a positive confirmation, CIBIL will start reflecting the changes in your report.
- This entire process might take at least 30 days and you will receive an email from CIBIL once your information has been rectified.
Specific problems on CIBIL reports with solutions
For an easier reference, here is a list of common problems associated with the CIBIL reports and possible methods to obtain solutions.
- Problem: Poor Credit History
A low credit score on your CIBIL report indicates irresponsible credit behaviours in the past. Frequent delays in your payments, high utilization of your credit, loans/credit card debts, etc., are some of the reasons leading to a low credit score and it reduces your ability to avail credit in the future.
Solution: Make sure you pay your credit card bills and EMIs on time. Borrow only what you need, according to your repayment plan and avoid making minimum payments. If you are unable to work with the current plan, try and work out an alternative loan restructuring. Checking your CIBIL report regularly might help you keep track of your credit expenditure.
- Problem: Errors in personal Information
These are minor errors that include misspelt names, age, contact information and errors in account details.
Solution: Avail your CIBIL report copy from the CIBIL website and check for possible errors in the report. Once you spot them, you can raise a dispute by filling up the online dispute resolution form.
- Problem: Days Past Due (DPD)
Days Past Due or DPD means the number of days by which the due payment has been delayed. Anything other than ‘000’ or ‘XXX’ in your DPD section indicates you have delayed your payment, and this might give out a wrong interpretation of your credit usage to your lenders.
Solution: Multiple late payments will lower our credit score. The best way to avoid this is by setting monthly reminders to automatically pay the due amount before the given due date.
- Problem: Error with the account
There could be few accounts mentioned on your CIBIL reports but they are actually not yours. These are called errors with account ownership. This could be an administrative error or could indicate fraudulent usage.
Solution: If there are incorrect mentions of open accounts on your CIBIL report, you need to immediately raise a dispute to avoid further errors, if they are administrative, or to end the fraudulent account, if otherwise.
- Problem: Overdue for paid off accounts
Your CIBIL report may show an outstanding overdue amount that has already been cleared or there might be an error in the payment history despite your previous regular payments.
Solution: The lenders submit their data to CIBIL once in 30-45 days. If you have gotten a copy of your CIBIL report within this time period, and there is an error, this could probably be because your institution still hasn’t submitted the data and it hasn’t been updated in CIBIL records. In case it has been more than this time period, you will have to contact the respective lender institution and ask them to rectify their records and submit the required data.
It is essential to have a high credit score and to attain this you need to make sure your CIBIL report is up to date and is error-free. Therefore, It is necessary for you to generate your CIBIL report regularly and make sure your credit history is not affected by any of these mentioned errors.
Sometimes, even though you are aware enough, you end up missing the due dates to clear your credit bills. Repetitive mistakes like this and multiple outstanding loans can lead to a very poor credit score. It is always advisable to clear your loans rather than paying high rates of interest with increased delays. With the help of EarlySalary, you do not have to worry about late payments. We can help you with financial wellness ideas, credit, or personal loans to fulfil instant cash needs. With our professional consultation, you will not only learn how to manage your credit but also will be able to clear off your loans.