Errors in your CIBIL score or credit information report are an uncommon occurrence, but there is a possibility of wrong information being updated on it. The trends on your credit history do not have an immediate impact on your credit score, but they do over time. The procedure for correcting a wrong entry on the CIBIL report starts with identifying an issue and registering a dispute with CIBIL.
CIBIL stands for Credit Information Bureau (India) Limited. It is one of the credit bureaus in India that records consumer and business credit history. It is authorised by the Reserve Bank of India to record the repayment details of borrowers and calculate credit scores on the basis of available information in the report. Lenders, financial institutions, and credit card companies report your repayment details to CIBIL. Generally, the information on your repayment behaviour is sent to CIBIL every 3 months. Based on the information received by the financial institutions, your CIBIL credit report is updated. There are chances that some wrong information is sent by the financial institutions or some wrong information gets updated on your CIBIL credit report by the bureau. Wrong information has the ability to impact your credit score. What do you do in that case?
How to Raise a Dispute with CIBIL for Report Correction?
Getting chased by credit card debt collectors even when you have never defaulted on the repayment can be stressful. A bank loan application was turned down. You will be offered high-interest loans. These are just a few of the potentially disastrous implications of a credit report inaccuracy. Incorrect information can occasionally make its way onto your report owing to technical mistakes, or miscommunication. These things can cause financial stress, and to steer away from it, you must report any error that you find on your CIBIL credit report immediately to the bureau, asking for a correction.
Here are four (4) steps to raise a dispute with CIBIL for report correction:
1. Review your CIBIL Credit Report
Before you start the process of removing a wrong entry from your CIBIL report, you should retrieve your credit score report and review it for the errors. There is a possibility that your credit report may have the following errors:
Start by identifying the type of error that your CIBIL report has in order to remove the entry.
2. Fill the CIBIL Dispute Form Online
To remove a wrong entry in your CIBIL credit report, you have to file an online dispute with the credit bureau. Go to the dispute resolution area of their website and fill out the form. You will need to provide a 9-digit control number from your credit report that contains the disputed information.
Additional Information: A control number is a unique number assigned to an individual in the database of CIBIL where all the records of that person are stored.
3. Processing and Verification of the CIBIL Dispute Form
Once you submit the CIBIL dispute form online, the credit bureau will verify the dispute. The credit bureau might approach your bank or lenders from where you have borrowed money. CIBIL cannot make any changes on its own without verifying them with the financial institutions. To expedite the process, you must validate the dispute you have raised by sharing supporting documents that may act as evidence.
4. Wait for the Resolution
Typically, for a wrong entry to be corrected on a CIBIL credit report, it takes 30 days. Banks must come up with a formal resolution for the dispute you have raised within 45 days of the matter being reported, according to the law. Once there is a formal resolution, you will be notified of the same via an email. If you are not satisfied with the resolution, you can raise a new request with CIBIL for the removal of the wrong entry. Remember, you will need to provide the details of the previous dispute request.
Credit ratings are an essential aspect of any loan or credit card application. It is a measure of your creditworthiness, and it is therefore, critical for anyone to keep their credit score up to date. Periodically review your credit report to understand what is up with your credit report. In general, look for dates, amounts, and account details that are inaccurate to ensure that all of the information in your CIBIL report is legitimate and correct. However, if any of the flaws in the report have been revealed, you must initiate the process of correcting them as soon as possible. To have a problem resolved with CIBIL, you must submit a formal application and wait for the resolution.