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What are the Types of CIBIL Errors & How to Correct Them?

What are the Types of CIBIL Errors & How to Correct Them?

Imagine applying for a loan and being denied, even though you have never missed a payment. Mistakes like these in your CIBIL report are not only irritating but expensive too! 

Your CIBIL credit score is a measure of your financial health and your creditworthiness. It measures how likely you are to repay your loans and credit card bills. Thus, it is important to know the kinds of mistakes that can be reflected in your CIBIL report and how to fix them efficiently. In this guide, let’s understand how CIBIL report correction takes place. 

Frequent CIBIL Report Errors 

The following are a few common types of credit report errors that can be found: 

1. Wrong Name, Numbers, Family Background, etc.

Errors in the name, date of birth, address or PAN can happen due to oversight or old data. Although they may appear small, they may result in identity verification challenges and have a bearing on your credit score.

2. Fake or Clone Accounts

At other times, your report might include accounts you don’t recognise, which could have been opened in your name by identity thieves or mistakenly assigned to your file by the credit bureaus. These types of accounts can also do damage to your credit score, especially when they have a poor history of payments.

3. Incorrect Account Status

Closed accounts may still be reported as open, or settled accounts may not show the correct status. These inconsistencies may not accurately reflect your credit utilisation and repayment activities.

4. Incorrect Loan Amounts or Balances

Your report may list incorrect loan amounts or balances, which can impact your credit utilisation ratio and, hence, your credit score.

5. Payment History Errors

Your payments that were due on time may mistakenly show late or missed payments, which is a major factor in your credit score composition.

How to Correct and Rectify CIBIL Report Errors Online

Now that you are aware of the different types of CIBIL errors, let’s look at how you can go ahead with CIBIL report rectification: 

Step 1: Get Your CIBIL Report

To begin with, get your latest CIBIL report. You can pay to get the report. You can also apply for a free report every year from the official CIBIL website or when your file is accessed by financial service providers.

Step 2: Identify and Maintain Records of Errors

Check your report for any mistakes. Note down the mistake and get valid documentation to prove it, such as a payment receipt or monthly account statement.

Step 3: Raise a Dispute Online

Log on to the CIBIL dispute resolution page and enter the details on the online dispute form. Be accurate and specific about the error and include supporting evidence. Each dispute needs its control number from your credit report.

Step 4: Keep in Touch With Lenders

As CIBIL sends your dispute to the lender in question, it’s a good idea to get in touch with the lender to speed up the process of verification.

Step 5: Await Resolution

CIBIL usually gets rid of disputes in 30-45 days. CIBIL updates your report once the lender confirms the details. You will be notified when the issue is resolved.

CIBIL Correction Process Timeline & What Happens After You Dispute

Your application will be sent to the bank/financial institution after raising a dispute at the CIBIL website. That is what we call the re-verification. The lender will verify your claim and revert to CIBIL. In case the dispute is accepted by the lender, CIBIL amends your report. If not, the challenged entry remains unchanged.

CIBIL doesn’t update your credit report on its own, and it’s just a middleman. You may be requested to provide extra documents or clarification, so stay prepared and respond promptly when required.

Fixing Your CIBIL Score After Default, Settlement or Overdue Mark

If you’ve faced problems in the past, such as late payments or settlements of loans, take a step forward. Pay off all your dues and ask for a No Dues Certificate from the lender. If you have paid off a loan, have it formally closed in the lender’s system and also ensure they have updated your status with CIBIL. 

And don’t forget to follow up. This step can possibly make the most difference in a lender’s decision. If you follow up on all your letters, you can make a major difference in how they view your credit in the future.

How to Initiate CIBIL Correction Online with All Major Credit Bureaus

While CIBIL is the most widely used credit bureau in India, similar correction processes apply across other major bureaus such as Experian, Equifax, and CRIF High Mark. The steps are largely standardised and easy to follow online.

1. Visit the official website of the credit bureau and log in using your registered mobile number or email ID.

2. Access your credit report and identify the specific entry you want to dispute.

3. Select the dispute option and choose the appropriate reason from the drop-down menu.

4. Upload supporting documents, if required, and submit the dispute.

5. Track the dispute status using the reference number provided.

Sample Dispute Online Form & Key Documents Needed for CIBIL Score Correction

When raising a dispute online, you will be required to fill in basic details such as your name, contact information, control number, and the section of the report you are disputing. You must clearly describe the error and select the correct dispute category to avoid delays.

Commonly required documents include:

1. PAN card or Aadhaar for identity verification

2. Loan account statements or closure letters

3. Payment receipts or bank statements

4. No Dues Certificate, if applicable

Tips to Prevent Future Errors & Keep Your CIBIL Report Error-free

Regular Monitoring: Periodically review your credit report to catch mistakes early.

Pay On Time: Pay all of your loans and credit cards on time to have a good payment history.

Limit Credit Inquiries: Taking multiple loans within a short period can negatively impact your credit score.

Keep a Healthy Mix of Credit: Having a good balance of both unsecured and secured loans can also help boost your credit score.

How Many Days to Correct CIBIL Score in India? Dispute Resolution Timelines

Once you raise a dispute, CIBIL forwards it to the concerned lender for verification. The standard resolution timeline is usually 30 to 45 days, depending on how quickly the lender responds. If additional clarification is required, the process may take slightly longer. Your credit score is updated only after the lender confirms the correction.

Conclusion

Keeping a proper CIBIL report is a key aspect of your financial life. By keeping an eye on your report, promptly fixing any mistakes, and good credit behaviour, you can improve your creditworthiness. 

If you’re considering taking a loan but your CIBIL score is preventing you from doing so, a credit loan online from Tata Capital can help. Apply now!

FAQs

How do I rectify my CIBIL score soon?

You may not be able to immediately set your CIBIL score right, but you can speed up the process by quickly spotting an error in your CIBIL report and filing a dispute on CIBIL's online platform. Providing accurate information and supporting documents can also help resolve the issue faster

Can I improve my CIBIL score?

Yes, it is possible to improve the CIBIL score by fixing any errors in the credit report, timely repayment, decreasing existing debts and maintaining a healthy credit mix. Consistent and careful financial management will eventually be reflected in your credit score.

How much time does it take to improve a CIBIL score?

Resolution of discrepancies in your CIBIL report takes about 30-45 days after filing a dispute. The time taken will also depend on how long the lender needs to review and approve the corrections.

Can a loan be taken by a CIBIL defaulter?

It is difficult but not impossible to get a loan with a low CIBIL score. A few lenders might extend loans at premium interest rates or in the form of collateral. Over time, as your credit score improves, you will have a better chance of getting approved for a loan. 

What is CIBIL correction and how to correct CIBIL report online?

CIBIL correction is the process of fixing incorrect information in your credit report. You can do this by logging into the CIBIL website and raising an online dispute.

How long does CIBIL score correction take after raising a dispute?

CIBIL score correction usually takes 30 to 45 days after the dispute is raised, depending on lender verification.

Is there any fee for CIBIL report correction or CIBIL dispute?

No, raising a dispute and correcting errors in your CIBIL report is completely free. You do not need to pay any additional fees for correction. 

What documents are required for CIBIL score rectification?

You may need identity proof, loan statements, payment receipts, or a No Dues Certificate, depending on the nature of the dispute.How do I rectify my CIBIL score soon?

Can I raise more than one dispute at once for CIBIL correction online?

Yes, you can raise multiple disputes, but each incorrect entry must be submitted as a separate dispute.

Who updates my CIBIL after correction—CIBIL or my bank?

Your bank or lender verifies and updates the corrected information, while CIBIL reflects those changes in your credit report.

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