Tuesday, 2 August 2016

How Long Does it take to Update status on credit report?

If you are loan-shopping and are worried your applications will be turned down due to a poor score, be assured, you are not alone. One of the preliminary checks that a credit institution undertakes is the inspection of your credit report. Industry pros claim, it is best to scrutinize your report yourself before you let a prospective lender take a look into it.
Let us, for a second, imagine, you have recently seen your cibil score and report. You are not happy with it. Perhaps, it is less than 600 points and you are sure you don’t stand a chance with any bank or NBFC for a loan. Or maybe, you expect to be quoted a high rate of interest because of it but you don’t like the idea and want to enjoy a lower rate. For all of this, mate, all you need is a good score. A score in the elite club of 750 and more is what you need. When you are trying to build your score then you must constantly track it to be sure you are on target.
Request an Update
Your score is a reflection of all your past credit activities, as recorded in your credit report and nothing beyond that. It will apt to say, changes to report are reflected in the score. Meticulously study every detail mentioned in your report. There is quite a chance that you may spot an error in your report. After all the people who update and maintain our reports are humans and to “err is human”. Well, don’t be disappointed to find a discrepancy in your report. Use your computer to raise an online dispute with CIBIL through its official website. CIBIL acts only as a repository and has no autonomy over the information in your report. It can only update the report as per the information that is provided to it by credit institutions.
Once you raise a request for an update, CIBIL will contact the bank or NBFC that had provided the discrepant information in the first place. The lender is then expected to check internally and send the correct information in place of the erroneous info. Once CIBIL receives the updated info from the lender, it shall update the report subsequently. If the lender responds with no update, the information will not be changed and you may be requested to either get in touch with the lender yourself or re-raise the dispute.
It is worth noting, the entire process of dispute resolution takes anywhere between 30 – 45 days. So let’s say:
June 1st
You raise a dispute about a spelling mistake in your name.
June 10th
Status of report : Not Updated
June 20th
Status of report : Not Updated
June 30th
Status of report : Updated

So you see, incase you check for an update before 30 – 45 days have elapsed, you may find the error still perched on your report. Be patient and perhaps, if the dispute is resolved in your favour you will notice the change in your report at the end of the turnaround period. If the dispute was about something that would directly affect your score, for example a misreported underpaid loan account, then you would see a dual update. One, the information will be removed if it does not belong to you. Second, your score will improve by some points.
Track a Score Update
You are positive that the report is clean and there are no discrepancies, yet your score still dangles by a thread. You need to add more life to it. You chalk out a plan on how you intend to increase CIBIL points but you are not sure of how soon your hard work will reflect in your score. What do you do? Be patient.
Credit institutions are supposed to regularly update CIBIL once a month on client information, payment updates, new requests etc. Once you start making timely repayments and do not place new requests for credit on the market then, with inflow of positive monthly report every month your score will begin to escalate, few points each time. Allow yourself atleast a six months’ time before you recheck on your score. Although your report will be updated every month but a substantial change will begin to reflect only over a period of time.
To track your score update:
1.       You could enrol for a bi-annual or quarterly subscription of your CIBIL report instead of ordering a single copy for Rs. 550/- every time. It helps save some bucks.

2.       Alternatively, you could log on to www.freescoreindia.com for authentic scores and CIBIL report, for free.

When you are working on your score, it is quintessential to keep a track of your score to make sure your hard work is paying off.
Report Has Not Been Updated. Now What?
Don’t rush to press the panic button, yet. Write an email to CIBIL. Do know that CIBIL can make no changes to your account out of its own free will. The bureau has to follow a “status quo” and can only depend on the info sent to it by the lender. It is imperative that you follow it up with the respective creditor as well, at the same time to ensure sync in timing. That is, the lender responds within the turnaround period and the report is updated on time by CIBIL. The option of challenging the erroneous information again is always open.
Incase you still feel lost with the “what” and “how” of your credit report, then don’t hesitate to seek expert guidance on it. Don’t take undue chances with your credit score, ever. A lot depends on it... financially.
Good Luck!

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