The importance of maintaining a good CIBIL score cannot receive enough emphasis, and while individuals who have a poor credit history may be thrust with the problem of a low CIBIL score, there are individuals whose CIBIL scores are affected due to errors made by the credit rating company. Although it doesn’t happen too often, there are instances wherein CIBIL makes mistakes and assigns one individual’s score to another, thereby not only adversely affecting an individual’s CIBIL score, but also leaving the individual open to the risk of facing underwriting decisions when they apply for loans.
Reasons for Wrong CIBIL Scores
There can be two reasons as to why CIBIL may have gotten your score wrong. Firstly, it could be a genuine mistake made by the bank or lending institution when reporting or ascertaining the score. The second reason could be that the individual had stood as guarantee for another loan. When an individual signs as a guarantor and the individual taking out the loan fails to make repayments on time, the details of the loan and defaults, if any, will be reflected on the credit report of the guarantor too, thus making him / her susceptible to a poor CIBIL score.
Rectifying Errors in CIBIL Report
When going through a CIBIL report, if you find that there is a credit facility included erroneously and you have not taken a loan, you must take certain measures to ensure that your CIBIL score is rectified and improved. The presence of a process especially introduced for the same reason can come in handy in helping you rectify CIBIL errors.
The first step to correcting your CIBIL score is filling in an online dispute form. This form can be found on the official CIBIL website. After downloading the form, you will have to fill in certain details including the nine-digit number appearing in your CIR (Credit Information Report). The nine-digit number will make it easier for CIBIL to trace the particular report for which a CIBIL Dispute has been raised. Once the form has been submitted with all the relevant information, the company will grant you a Reference ID for use in future correspondences. After receiving the form, CIBIL will get in touch with the pertinent financial institution to verify your details and confirm with the relevant bank about your particular dispute. Hence, in case a loan from a particular bank has been wrongly reflected in your CIBIL score, CIBIL will get in touch with the particular bank and gather the required information as the company itself does not have any authority to remove or add any loan to your CIBIL report. The records of the bank will be checked to determine whether or not any errors were made by them, after which the bank will reply to CIBIL and update your credit report after going through all the information you have furnished.
The resolution of disputes usually takes around 30 days, but it can conclude sooner if the financial institution takes less time with verification and related processes. CIBIL generally takes only around seven days to update your credit report one it receives your information. You will be informed from time to time about the status of your dispute, and if you are not satisfied with the manner in which the dispute was resolved, you may initiate another fresh complaint, and the company will re-verify your information with the concerned bank or lender. Customers are encouraged to remain patient during the resolution process as the agency usually takes time to correct errors like this.