Being credit healthy is important in current times not only because it reflects your financial health but also because it impacts one’s chances of getting a loan or in certain cases it can impact job prospects too. Following certain basic rules can help you stay credit healthy and have a good credit score. However what if your credit score is in the red not because of your irresponsible credit behavior but due to an error in the CIBIL report. Errors in the CIBIL report can cause more than expected harm and must be addressed immediately.
Types of Errors:
There are various types of errors that can occur in your credit report; some may affect your score others may not. However irrespective of the impact on the score it is essential that you get them rectified at the earliest by contacting CIBIL. Errors that deal with miss-spelt names, wrong contact details or inaccurate information about employment etc will have no bearing on the rating but these still could cause trouble or could indicate something more serious like an identity theft in rare cases. Hence these also need to be looked into and the required action needs to be taken.
Some errors like a delayed payment information when the same has not happened or a loan that does not belong to you being included in the CIR can cause adverse impact on the rating. When one needs a loan then this could become a big stumbling block and at that time you may not have enough time to get it rectified. Before you start researching on how to get loan for CIBIL defaulter we have some suggestions to offer that can help you get the error rectified.
Dealing With the Error:
CIBIL is a rating agency; hence it collates the data that is sent to it by various lenders across the country. This data relates to an individual’s loans, past and current both, payment history, open credit cards, credit card usage, credit enquiries and also non credit related information like personal/employment/contact details. Thus it is possible that in so much data being collated about each individual some errors may occur. These rarely occur at the CIBIL level and are generally due to some erroneous report by a lender. Though uncommon sometimes an error can also happen if data is entered incorrectly at CIBIL or there is some mix-up at the time of data entry.
Obviously the first thing to do is to go through the CIR carefully. Without going through your report in detail it is not possible to spot an error so that is a must and should be done periodically. Once you identify the mistake you need to fill a Dispute Resolution Form which is available online at the CIBIL website. You need to fill in the required information correctly. This information relates to your personal details (name, date of birth, contact details etc) and also about the dispute. Dispute details includes the control number which is nine digit number mentioned on the top of the CIR, the date of the credit report and the details about the dispute (the exact nature of the error as per the complainant). Once this form is submitted you get a Dispute Id which is required for all future correspondence; this will also be mailed to you.
Once the dispute reaches CIBIL they need to identify whether the error is at their end or it is due to some incorrect data provided by the lender. If the error is at CIBIL level they will fix it and the let you know else they will get in touch with the concerned lender. Since CIBIL just collects data, it cannot make any changes to the data and hence has to wait for the lender to respond. Depending on the lender’s response the necessary action will be taken by CIBIL. In this case also you would be sent the required update. This can take up to 30 days and once you get a word about the mistake being rectified you can access your CIR again to see if the error has been fixed. CIBIL takes approximately seven days to update its records once the relevant clarification is received. If it is an error that affected your CIBIL score calculation then your score is likely to improve.
However if you are not satisfied with the resolution you can raise the dispute again and CIBIL will try and resolve the issue whether it is by looking at their own records or contacting the concerned lender.