How to Remove Name from CIBIL Defaulters List

Many existing consumers and first time borrowers come up with various questions related to ‘CIBIL Defaulters List’ while checking their CIBIL score and report. To ensure transparency, TransUnion CIBIL and other credit bureaus like Experian, Equifax and CRIF High Mark have affirmed that they do not maintain any defaulters list of the credit borrowers. These credit bureaus generate consumer and company credit reports on the basis of credit information, as provided to them by the lending institutions, such as banks and NBFCs.

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Why Check Credit Score on Paisabazaar ?

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Track Credit Score Seamlessly Every Month

Read Credit Report in Multiple Languages

How RBI Started Tracking Credit Defaulters in India?

To ensure the collection and distribution of credit information related to loan defaulters, the RBI launched a scheme in 1994. In the initial stages, RBI gathered information relating to those consumers who failed to repay the collective credit amount of Rs. 1 crore. However, five years later the benchmark debt amount was reduced to Rs. 25 lakh. The RBI has further classified by dividing the list of defaulters into two categories, named as wilful and non-wilful defaulters. It maintains a list of wilful defaulters who owe Rs. 25 lakh or more to any financial institution. Later, this list is publicly shared with all the financial institutions so they to make informed decisions before loan sanctioning.

TransUnion CIBIL does not maintain any defaulters list, nor does any Credit Bureau issue a defaulters list.

Whether you're applying for a credit card or loan such as a home loan, car loan, or personal loan, your credit score is one of the few important factors that lenders check to assess your creditworthiness. A lender evaluates your loan repayment ability based on your credit report. If you have a bad CIBIL score then the lender might reject your loan application.

Paying your dues on time has a positive impact on your credit score. But if you do not make payment on time, defaults will be mentioned in the Days Past Due (DPD) section of your credit report. Due to this, your CIBIL score shall fall and lenders will refrain from approving your loan or credit card application. If you’re wondering whether your low credit score has put you on the ‘CIBIL Defaulters List’ then you must know that CIBIL does not maintain a defaulters list. No defaulters list is maintained by either CIBIL or any other credit bureau. Neither they can change or modify consumer details, as provided by the lending banks or NBFCs.

If you want to save yourself from being labelled as a 'Defaulter', you need to improve your credit score. To help you with the same, the following are some of the important points to remember:

Steps to Improve Your Credit Score

Regularly reviewing your credit report

Make sure you check your credit report for any errors regularly to stay updated with your credit score. If there’s a fall, you can track down the reasons and rebuild your credit score in time. If you find an error in the report, you may contact CIBIL through their website contact details.

Clearing off all your pending dues

Delayed loan repayment is one of the major reasons behind poor credit scores. A 'settled' or 'written off' status on a credit report warns lenders as it shows that the borrower cannot be trusted to fulfil their debt obligations. Therefore, loans for CIBIL defaulters are mostly rejected by lenders. To improve your credit report, clear off all outstanding dues as soon as possible. Once all your outstanding bills are cleared, check your credit report after three months or so to ensure the new status is reflected in your credit report.

Timely loan repayments

When you take a loan, you are required to repay a certain amount to the lender each month. Don’t be under the illusion that a single skip, delay, or partial payment will not affect your credit score as every single transaction of your payment is recorded and reported to the credit bureau. Missing or delaying even a single loan instalment negatively impacts your credit history and credit score .

If you want to improve your credit score or keep the good score steady, start paying your monthly loan payments and credit card bills before the due date. The more timely you pay your instalments; the higher will be your credit score.

Avoiding multiple loan applications in short duration

Never apply for multiple loans simultaneously or within a short period, as it depicts your credit-hungry behaviour. In addition, you should not apply for loans even for a short duration, as this behaviour raises suspicion about your creditworthiness and repayment capability. Therefore, you should apply for a loan or credit card one at a time. This not only increases your chances of getting your loan approved but also makes the payments easy to manage.

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FAQs

How to take off your name from the CIBIL defaulter list?

By now as we know, TransUnion CIBIL or any other credit bureau does not generate any defaulters list, so by no means you can remove your name from the defaulters list. Also, find below the measure to ensure that your CIBIL report does not highlight poor or bad credit scores of consumers.

Can I delete my credit history?

No, neither you nor credit bureaus have the authority to delete your credit history, as it depends on your past credit behaviour. Your credit history is collected and managed by Credit Information Companies (CICs) like TransUnion CIBIL, Experian, Equifax and CRIF High Mark that can not be deleted but changed as per your payment history or credit behaviour. These four leading credit bureaus have permission from RBI to calculate and generate credit reports and credit scores of individuals and companies.

How many years will CIBIL keep a record of defaulters?

TransUnion CIBIL does not maintain any defaulter list, so does not have any record of defaulters. Usually, CIBIL maintains and manages records of your credit history for the past 7 years, as per the data provided by the lenders every month.

How can I check my name from the defaulter’s list?

As CIBIL does not maintain any defaulter’s list, there is no possible way for you to check your name from the defaulter’s list. If you have not paid loan EMIs or credit card dues in time, you can directly check with the lender for related information or enquiry.

How many days will it take to clear the ”Written Off” status from the CIBIL report?

The ”Written Off” status is mentioned in your credit report if you have not made the payment of a loan or credit card for a minimum of 180 days. To clear or remove the ”Written Off” status from your credit report, you need to pay back the total outstanding amount, as shown against your name. Further, you need to obtain a ”No Due Certificate” from the lender who wrote the status. It shall take approx. 7-15 working days to completely remove the status from the credit report.

How to remove a wrong entry from the CIBIL report?

To remove any wrong entry from your CIBIL report, you shall need to check your credit report for errors and raise a CIBIL dispute by visiting CIBIL’s official website and filling out the CIBIL Dispute resolution form online via its Consumer Dispute Resolution Process.

Is there a separate loan process for a CIBIL Defaulter?

As there is no separate term known as CIBIL defaulter, so there is no separate process for the same. Just maintain good CIBIL score to avail funds at ease and pay all your loan EMIs and credit card dues in time.