CIBIL Problem? Poor Score? Bad Credit Report? How to improve CIBIL Report?
CIBIL Problem? Poor Score? Bad Credit Report? How to improve CIBIL Report?
November 2nd, 2021
What type of errors can occur in the Credit Information Report?
Your Credit Information Report or CIBIL Report is a crucial factor in the loan application process. Due to mistakes or misreporting in your CIR can result in rejection of your loan application. It is therefore very important for every prospective borrower individual to understand the intricacies of common mistakes which can creep in their CIBIL Reports and how to get rid of such mistakes.
When you have purchased your CIBIL Report or CIR from any Credit Rating Agency like Equifax, Experian or High Rank, it may come to your notice that Current Balances or Amount Overdue may not be updated for your latest payments. This will usually be the case if you have purchased your CIBIL or Credit Report before the month end date in with you made the payments as the payments made during a month get updated at the end of the month and in some cases the payments get updated at the end of quarter as some member banks report the loan accounts to Credit Rating Agencies on quarterly basis. Lending Bankers and Finance Companies often report information to the credit bureau either on a monthly basis or on a quarterly basis. Latest payment made by you may not get reflected on your CIBIL Report until the data is submitted by that lending banker. However, it the “Date Reported” Which is the date the data was reported to the CIBIL associated with that account is older than 2 months, the borrower can write to the CIBIL to help update this information.
An inaccurate Current Balance will imply that you are highly indebted and your chances of getting fresh loans may be reduced. Similarly, Amount Overdue indicates that you are unable to service your existing loan obligations. Both are viewed negatively by lenders and may affect the chances of your loan approval.
Incorrect Personal Details
Credit information is submitted to the CIBIL by various lenders. Each lender submits your credit loan account along with your personal information such as name, address, date of birth, PAN Card Number, Aadhar Number and so on. The bureau than uses the personal information, to sum up, these details into a single Credit Report which provides your complete credit profile. Please ensure that you have provided accurate and updated details to your lender at the time of your loan application. In addition, every time your personal details undergo change, you should inform your banker so that it is possible for him to make the necessary changes to their databases.
Ownership
If you find that either some of the personal details or one or more loan accounts on your CIBIL Report do not belong to you, you should write to the credit bureau. The credit rating agencies will enquire into the matter and help you get your information updated if required.
Frankly speaking, the best solution is to check your CIBIL Credit Report BEFORE you apply for a loan so that you know your banker is evaluating your loan application based on proper and accurate CIBIL Report.
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