Solutions for CIBIL Report Problems

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Common CIBIL Report Problems and Their Solutions

Given below are a few common CIBIL report problems and their solutions:

Problem 1: Poor Credit History

A CIBIL report with a low credit score indicates irresponsible credit behaviour in the past that may reduce your chances to avail additional credit in future. Frequent delays and defaults in repayments, high credit utilization ratio, default on loans/credit card debt, etc. are some of the key reasons that could result in a low CIBIL score being recorded in your CIBIL report.

Solutions:

• Pay your credit card bills and EMIs on time
• Avoid making minimum payments or settling your debts
• Check your CIBIL report and CIBIL score regularly. You can avail it absolutely free with monthly updates from Paisabazaar
  
• In case of any incorrect information or error in the report, you must immediately raise a dispute with CIBIL
• Try and work out an alternate repayment plan such as loan restructuring with your bank/ financial institution in case you are unable to make your payments on time

Also Read: 10 Easy Tips to Boost your Credit Score Fast

Problem 2: Errors in Personal or Account Details

You should regularly check your CIBIL report for clerical errors such as your misspelled name or wrong date of birth or typographical errors in the address. On the other hand, major errors can be an error of mistaken identity. Both major and minor errors can affect your CIBIL score and may even result in the rejection of your loan application.

Solutions:

• Avail a copy of your CIBIL report from Paisabazaar for free and check for all possible errors in the report
• Once you spot the error(s), you can raise a dispute by filling up the online CIBIL dispute resolution form
• CIBIL will verify all your details and all the possible errors will be corrected in your updated CIBIL report

Problem 3: Days Past Due (DPD)

DPD or Days Past Due means the number of days by which the due payment on an account has been delayed in a given month. In case your DPD indicates anything other than ‘000’ or ‘XXX’, it means you have delayed your payment (s) and this may be interpreted negatively by lenders. In case you have made payments on time and find errors in your DPD, you should get it corrected at the earliest else it can even lead to loan rejection.

Solution:

Timely payment of dues is the best possible way to avoid the DPD marked other than 000 or XXX. While a single late payment will have a minimal or low impact on your CIBIL score, multiple late payments will adversely affect your score.

Problem 4: Errors in Account

There may be loan/credit card accounts which have been closed (i.e. paid off in full) already, but have not been reported to CIBIL by the lending institution. There could be errors in account ownership, whereby some open accounts are mentioned in your CIBIL report which are actually not yours.

These could either be the result of administrative errors or could indicate fraudulent usage. An account can also be incorrectly tagged as ‘written off’ or ‘settled’ that may adversely impact your score and be viewed negatively by the lenders.

Solution:

• In case a closed account is still shown as open, you must contact the lending institution and verify it. In case they have not yet closed your loan file, you must immediately provide them with all necessary details so that you can obtain a NOC (No Objection Certificate)
  
• In case there is an incorrect mention of open accounts which are not yours or an incorrectly tagged account, you can raise a dispute with  CIBIL.

Problem 5: CIBIL Report Shows Overdue even for Paid Off Accounts

Your CIBIL report may show an overdue amount that has already been cleared or show defaults in payment history even when you have been regular with all your past repayments.

Solution:

• Lenders submit data to CIBIL every 30 – 45 days and in case you happen to avail your CIBIL report within 45 days of pay off or closure of your accounts, it may not be updated in CIBIL records. 
• In case it has been more than 2 months since the lender has submitted the data associated with that account, you can contact the credit institution and ask them to rectify the data in their records and also request them to submit the correct data to CIBIL so that it can be updated on the report. 
• CIBIL bears no responsibility when it comes to verifying the credit data reported by lenders. In case of errors or inconsistencies, you can raise a dispute using CIBIL’s Dispute Resolution mechanism and then your claim will be verified and if applicable, updated on the report.

NOTE: In case you raise a dispute with CIBIL, it may take up to 30 days to resolve a dispute, depending upon the time taken by the lender to respond.

Suggested Read: How to Raise a Dispute with CIBIL?