Solutions For Your CIBIL Credit Report Issues

Now you can overcome Credit Report Problems

 

Now you can overcome Credit Report Problems

A CIBIL Credit Report is a  record of your credit history and an amalgamation of your payments to loans and credit cards.The first step is to calculate the CIBIL score and the data to  forwarded to banks and institutions for evaluation. Every bank or credit institution has their own benchmark to constitute a good score. It will differ across banks. The credit scores and CIBIL credit report will help the banks and credit institutions to determine if any individual is eligible to avail credit.

The Use of CIBIL Credit Report

CIBIL Credit report or score shows your financial journey. Your CIBIL score/ credit report will be the first impression for your lender, if the score is high, then it has good chances of the loan/credit card also being approved. Here are some of the ways a good CIBIL score/ credit report will enable you.

  • An instant approval for loans and credit card
  • Lesser rate of interest .
  • Easy approval for home loans
  • The right to negotiate .
  • A quick approval for higher limits.

Solutions For CIBIL Credit Score Issues

Error In Your CIBIL Credit Report

An issue like minor as a spelling error in your name or address in CIBIL score can create problems. Also this will make it look like a minor error, it can cause damage. The other sort of damage you might see is the mistaken identity that you might find someone else’s loan details in your report or an overdue amount on a loan that you haven’t taken. Also minor errors like this can bring our CIBIL score down drastically and that will lead to further rejection of your application.

The initial step of the solution is to get a copy of your CIBIL credit report from CIBIL. After you get access to the reports, you can analyze the errors and then initiate a dispute by filing a resolution form that is available on the CIBIL website. One has to provide their name,address, date of birth, and a register mobile number to initiate this process .

Days Past Due 

  • Days Past Due will also indicate the number of days a payment on that account is late in that month. A ‘000’ is a negative score for the lender. Also if your DPD shows ‘000’ it will indicate that you haven’t reached your financial obligations and this will also create a bad impression on your financial record.The solution to this is to avoid unfavorable DPD is to pay your bills on time by avoiding taking excessive, unnecessary debt so that will honor your financial obligations without any hassles.
    • Bad credit history- A weak credit score or credit report will make you lose your chances of getting a loan, credit card or any other kind of
    • Solution:Timely paying your bills – No delay, your payments should be performed.
    • Make minimum payments- Making minimum payments can land you in trouble for a longer run.
    • Less debt– Take the only amount that you need.
    • Contact – If you are still unable to initiate any payments on time, you can make sure to contact your bank or any financial institution about your credit

    Hence , you can avoid having a bad CIBIL credit score by being responsible and taking necessary measures. It should be easy to repair your credit score problems and it will be better to avoid it.

Also Read: The 5 C’s of Credit and Their Importance

Things That Your CIBIL Report Doesn’t Display.

If your credit report includes data to ensure your credit score and your financial standing then , it is not at all an exhaustive compilation.Here are some things that your credit report can’t or won’t inform you.

Savings , Investment Data:

Your credit report will not inform you relating to any of your savings or investment accounts at any of the member credit institutions. The transaction in these accounts is not under reporting radar and this also doesn’t effect your overall credit score. Also , this will include information on your fixed deposit accounts, current accounts along with trading accounts. Your savings and income sources are also representative of your financial position, your CIBIL report concerns only your credit  history.

Credit Approval Status:

Your credit status may also be based on your report but your CIBIL report might not contain any suggestions on how the score is used. Whether a credit score is adequate enough or not the decision left on the enquiring credit institution. Neither will it inform you of making an inquiry or your loan will be approved based on just the information presented in the report.

The Credit Information Report name suggests a report which only presents documented information. Relevant inferences and analyses that can draw a performance based analysis.

Ways To Improve Your Credit Score:

A credit report includes data on delayed payments that won’t necessarily affect your instances on your credit score.Your credit  score is the sum of your overall report. It will not only provide specific measures but also improve your score on recorded data.

Credit utilization ratio: The ratio between your credit limit and credit usage will not be indicated on the credit report . It will arrive on finding that based on the information provided. Usually , a credit utilization ratio of 75% is acceptable for a good credit score and the ratings on your credit report will be indicated .

Defaulters list:

CIBIL will not maintain a list of defaulters and mention in your report if you should be named in any such list. It is a misconception that lenders can get access to a  CIBIL record that has blacklisted defaulters like you on past credit. But your CIBIL credit report will record defaults which will factor into your score but this might not be separately highlighted on a part of a list.

CIBIL Ratings Are Becoming Prominent In Our Financial System:

While in CIBIL ratings are becoming prominent in our financial system number of institutions, largely banks and credit card issuers. It is very likely that insurance companies and telecom companies may soon join the group very soon. However, many employers are also  perform in  credit checks as a way to assess new hires, especially in the case of high-level recruits. Credit becoming a non-ignorable part of people’s lives, it is very needful for all to make CIBIL a part of their financial planning along with understanding and reviewing processes for easy availability of credit to achieve personal goals for finances as well.

Payment History Beyond 3 Years:

Recording of Month wise payments  in the report is up to to 3 years or can be prior to the most recent payment. Payments that you have done before this period will not be indicated in your CIR. You can monitor your report about 3-4 times a year and then review your payment history and along with any discrepancies at the earliest to prevent a bad score. Rectifying the report can be only if the relevant member institution submits to CIBIL that such discrepancy is corrected. This process will take time making it all the more advisable to keep an eye on your records.

Settlements:

If you have any outstanding dues with your lender and sometimes some late payments  due to un favourable conditions like , for example ; if  you cannot make timely payments due to a medical emergency or due to any fraudulent use of card .

So, you should inform such details to the rightful institutions and then they will identify these settlements in your credit report and then the settlement will be a impediment to your credit approval process.

Also Read: A Detailed Guide On The Crucial Tips And Tricks To Improve Your Credit Score!!

The Credit Report Tracking List

You now have clear access to your credit report that enables you to check for any discrepancies. While studying your own credit report, it is not only important to read your credit score, but it is also necessary to read a whole report. So follow the three major tracking parameters you must not miss to monitor:

Ensure There Are No Errors In Reporting By The Lender ;

Checking a credit report  once a year is necessary . So while you are applying for a loan , a lender will check your credit report. Hence you need to ensure that there are no errors  for the best terms on the loan. There are good chances that your lender might’ve made a mistake in reporting your credit transaction details. the first thing you have to know is to read the whole report.

  1. Outstanding sum on your credit cards and loan. Updating and clearing the report along with clarifying is important. And correcting the  wrong information high effects your credit score that too positively.
  2. Make sure to find any issues in personal data, address, outstanding balance etc., and then immediately report it to the credit bureau. And then compose a letter to the creditor to raise a dispute with the Credit Bureau for correction.

Hence , It is very important to maintain a high CIBIL Score so that your healthy financial future  . It enables you to avail the best loans from the banks.

Stolen or Duplicate Identity :

Look for reports or enquiries that you have been initiating. Loan application reported in your CIBIL report that has never been performed by you, then surely it is a case of identity theft. The thing that you need to look around is to checking for possible frauds are

  1. Loan accounts that are not yours.
  2. Credit inquiries that are not yours.
  3. Late payments that you have never performed .
  4. Ensure to rectify wrong address and other information.
  5. Your wrong phone number.

Hence when you suspect a case of identity theft, make sure to report it to the credit bureau that issued the report to the bank.

Monitor Your Account Details:

A majority of details in your CIBIL report is your account information. You need to review your accounts, check your loans and credit card accounts.

  1. Check credit limit, payment history and your current balance.
  2. Keep an eye on accounts that are very much inactive or you have closed.
  3. Keep a note of negative remarks and of the late payments.
  4. Monitor the active loans along with credit cards that you can consolidate
  5. Organize paperwork related to your accounts and keep the details safe so you can track them easily.

The Resolution Process:

Follow the basic steps to initiate your dispute process:

  1. Study your CIBIL report and find the mistakes.
  2. Submit an Online Dispute Form at their official website
  3. If you see a section that is  ‘Under Dispute’, click that.
  4. CIBIL will raise the matter up with the concerned lender, and then the lender accepts or rejects the Dispute.
  5. After the lender accepts  the disputes it , the initiation for correction begins.
  6. The time for the dispute resolution is 30 days.

Hence make sure that you have the proof before you decide to file a complaint.

Also Read: Want To Achieve A Good CIBIL Score ? Here Are Some Practical Tips.

Summing Up

Following all the articles should help you to know the outstanding balance on your accounts and also to keep a track of everything. If you provide wrong information then your application will get rejected that is present in the CIBIL report . By checking and correcting these in your report, you will lessen the chances of your loans being rejected. Hence it is your responsibility as well to check their own report and not the banks of CIBIL.