How to review and rectify errors in your CIBIL report effectively? A step-by-step guide

One of the most important factors while judging your financial credibility is that of your CIBIL score. However, your creditworthiness may suffer if your CIBIL report contains mistakes. This is a detailed guide to finding and fixing problems in your CIBIL report.

What is CIBIL score?

Your three-digit CIBIL score ranges from 300 to 900 and indicates the creditworthiness. Better scores mean better credit histories; hence, it is relatively easier to get personal loans or credit cards. Financial organisations judge a person's creditworthiness, assessing how reliable his credit can be, before they even approve his applications.

What is CIBIL report?

A CIBIL report details your credit history, including loans, credit card accounts, and trends of repayment. It forms the basis of your CIBIL rating. The higher your score, and the better-kept your report, it increases your chances of getting approval for credit.

Common errors in CIBIL report

Administrative errors or outdated information could be the reason for mistakes in your CIBIL report. Here are some common types of mistakes:

1. Personal information: Typographical or administrative errors may lead to mistakes in your name, address, date of birth, or PAN card details. You can pick up these discrepancies by constantly reviewing your report.
2. DPD: DPD is the number of days a payment is late. Any number other than "000" or "XXX" may indicate a missed payment and could lower your credit score. If you have not missed any payment, then it may be an error in the report.
3. Outstanding loan balances: The figures should reflect your actual dues. If there's a mismatch, lenders get confused and your CIBIL score goes down.
4. Credit account errors: Paid-off accounts may sometimes be left showing as open. In addition, accounts that are not yours may appear and affect your credit report.
5. Overdue amounts for paid accounts: Your report may show incorrect amounts as being past due or have payment defaults even after you have paid off obligations in full.

Steps to correct errors in your CIBIL report

1. Get your CIBIL report: Download your most recent credit report to get started in looking for mistakes.

2. Check and list problems: Examine the report thoroughly for inaccuracies. Look for accounts open, accounts not in balance, or wrong personal information.

3. Notify CIBIL of mistakes: Raise a dispute on the CIBIL portal. Fill up the form for the resolution of disputes and specify which errors are involved and present evidence in the form of receipts for payment or a bank statement.

4. Wait for resolution: In most cases, the CBIIL resolves your dispute within 30 days of raising the same. When your claims are verified, they will update your report with correct information.

In conclusion, keeping up your report on the CIBIL ensures good financial health and wellbeing, because correcting some mistakes early may help push up the credit score considerably, providing better financing terms. With a clean record of consistency in checking their report for inconsistencies and error correction, a good credit profile ensures a safe, secure, and prosperous future.