Discrepancies in CIBIL report – How to correct credit score error?

A credit score plays a major role in shaping a person’s financial journey. Whether applying for a home loan, personal loan, or credit card, lenders heavily rely on this three-digit number, most commonly monitored by CIBIL.

Financial institutions use the credit score to evaluate a borrower’s financial credibility and repayment behaviour. The score is generated using information shared by banks and NBFCs, including repayment history, active credit accounts, defaults, and credit utilisation. Ideally, the process is meant to be automated, transparent, and unbiased.

However, when the underlying data is incorrect, the consequences can be severe. Errors in credit reports are increasingly becoming a major issue for consumers. Many people have reported discrepancies in their CIBIL records, including fake loans, incorrect account details, outdated information, and mismatched addresses. Even more frustrating is the struggle to get these mistakes corrected, as customers are often shuffled between banks, NBFCs, and credit bureaus without a clear resolution.

One Reddit user shared how an alleged overdue amount of ₹6,600 on an SBI credit card sharply reduced his score while he was arranging finances for his child’s overseas education. The surprising part was that the account number mentioned in the report did not belong to any of his cards.

Another individual found a loan listed under his name that was connected to an entirely different address, phone number, and email ID. Despite repeatedly raising disputes and receiving confirmation from banks that the details were incorrect, his credit score continued to remain low.

A similar case involved Anmol Gupta, founder of 7Prosper and an active LinkedIn commentator. He was shocked to discover his CIBIL score had fallen into the 600 range because of a ₹20,000 loan from an NBFC he had never interacted with. The report reflected unusual repayment amounts and an outstanding balance of ₹1.07 lakh. The NBFC reportedly failed to provide proper KYC documents or a valid sanction letter, yet demanded ₹27,000 for issuing a No Objection Certificate.

How can a CIBIL score error be corrected?

Step 1 - Identify and document all errors:
Download your credit report from CIBIL or another bureau and carefully review all entries. Mark unknown loans, incorrect repayments, or inaccurate personal details. Collect supporting evidence such as bank statements, payment proofs, or records showing no association with the disputed loan.

Step 2 - Raise a dispute with CIBIL:

The quickest option is through the myCIBIL portal. Register or log in, visit the Dispute Center, select the incorrect entries, upload supporting documents, and submit the complaint. CIBIL then coordinates with the concerned lender for verification. Most disputes are resolved within 30 days, while lenders legally have up to 45 days.

Consumers can also file disputes offline by sending a written complaint with supporting documents to TransUnion CIBIL Ltd, One Indiabulls Centre, Tower 2A, 19th Floor, Senapati Bapat Marg, Mumbai – 400013.

Step 3 -Follow up and escalate if necessary:
Use the dispute reference number to track progress. If no action is taken within 30 days, escalate the matter to the lender’s nodal officer. If the issue remains unresolved after 45 days, consumers can approach the RBI Integrated Ombudsman Scheme through its online portal, email, helpline, or physical submission.

Step 4 - Seek legal or consumer court remedies:
If the lender or NBFC remains uncooperative, consumers can approach the State Consumer Disputes Redressal Commission or civil courts under the Credit Information Companies (Regulation) Act, 2005. Victims may seek correction of records, compensation, and damages for financial harm.

Step 5 -Report identity theft or fraud:
If identity misuse is suspected, immediately file a complaint with the Cyber Crime Police and inform banks and PAN-linked institutions to prevent further fraudulent activity.