Common Errors in CIBIL Report and How to Correct Them?

In Hyderabad, Zidaan, a young and ambitious individual, had his heart set on achieving financial success. He knew that a good CIBIL score was crucial in his pursuit of securing loans and credit cards to fulfill his dreams. Zidaan was aware of the importance of maintaining a healthy CIBIL score, but he also knew that even a small error in his CIBIL report could prove to be disastrous. Little did he know that he was about to begin a journey to uncover the common errors in a CIBIL report and learn how to correct them.

What is CIBIL score?

Zidaan understood that his CIBIL score was a three-digit number ranging from 300 to 900, representing his creditworthiness to lenders.

Timely repayments

Zidaan realised the importance of making loan and credit card payments on time to maintain a positive credit history.

Loan eligibility

He learned that a good CIBIL score significantly influenced loan approval and interest rates, making it easier for him to fulfill his financial goals.

Credit utilisation ratio

He discovered that keeping his credit utilisation ratio low, i.e., using only a portion of the available credit, was essential for a high CIBIL score.

CIBIL score range 

He became familiar with the different CIBIL score ranges and their interpretations – poor, fair, good, and excellent.

Mix of credit

Zidaan learned that having a mix of secured and unsecured credit accounts, like loans and credit cards, positively impacted his score.

Financial discipline

Zidaan understood that responsible financial behavior, such as avoiding defaults and bankruptcy, played a crucial role in maintaining a good CIBIL score.

Loan application success

With a high CIBIL score, Zidaan knew he had a better chance of loan approval and access to lower interest rates.

Credit report monitoring

Regularly checking his CIBIL report allowed him to identify errors or inaccuracies promptly.

Negotiating power

He realised that a good CIBIL score gave him the ability to negotiate better terms with lenders.

Avoiding scams

Zidaan learned that monitoring his CIBIL report helped prevent identity theft or unauthorised accounts opened in his name.

Employment opportunities

Certain employers in India considered CIBIL scores and other credit bureau’s scores while evaluating job applicants, making a good score beneficial in the job market.

Mental peace

Financially, a strong CIBIL score provided Zidaan with financial stability and peace of mind, allowing him to pursue his dreams with confidence.

As Zidaan decided to check his own CIBIL report, he found several common errors that often-plagued credit reports. These include – 

Unrecognised accounts

If Zidaan found any accounts he didn’t open, it could be a sign of identity theft.

Solution: He reported the unrecognised accounts to TransUnion CIBIL immediately and initiated a dispute.

Duplicate accounts

Sometimes, lenders might accidentally report the same account multiple times, inflating credit utilisation and affecting the score.

Solution: Zidaan raised a CIBIL dispute to remove the duplicate accounts from his report.

Incorrect personal information

Misspelled names, wrong addresses, or inaccurate contact details could lead to confusion and incorrect reporting.

Solution: He contacted TransUnion CIBIL to update his correct personal information.

Outdated accounts

Closed or settled accounts that were not updated could still be negatively impacting his credit score.

Solution: Zidaan requested the lenders to update the status of these accounts correctly.

Inaccurate outstanding balances

Errors in reporting outstanding balances could inflate credit utilisation.

Solution: Zidaan verified the actual balances with the lenders and updated the CIBIL report accordingly.

Delayed updates

Sometimes, lenders might not promptly update the status of an account, leading to erroneous reporting.

Solution: He contacted the lender to expedite the update and then raised a CIBIL dispute if necessary.

Settlement errors

If Zidaan settled an account but it was not appropriately updated, it could negatively impact his creditworthiness.

Solution: He provided settlement proof to the credit bureau to correct the error.

Incomplete payment history

Missing or incorrect records of timely payments could be detrimental to his credit score.

Solution: Zidaan provided evidence of timely payments to the credit bureau for rectification.

Account status errors

Zidaan discovered that sometimes accounts marked as “defaulted” or “written-off” in error could severely harm his credit score.

Solution: He contacted the lenders and asked them to rectify the account status and then initiated a CIBIL dispute.

Settlement misinterpretation

A settled account might be wrongly interpreted as “settled” instead of “paid in full.”

Solution: Zidaan contacted the lender and TransUnion CIBIL to correct the settlement status.

Inaccurate account closure

If Zidaan closed an account but it wasn’t correctly updated, it might impact his credit score negatively.

Solution: He contacted the lender to ensure the accurate closure status was reflected in the report.

Data mix-up

Sometimes, data from another individual’s account might erroneously appear on Zidaan’s credit report.

Solution: He contacted TransUnion CIBIL immediately to rectify the mix-up.

Repayment terms errors

Mistakes in the reported loan tenure or installment amounts could affect Zidaan’s creditworthiness.

Solution: Zidaan provided the loan agreement documents to correct the inaccuracies.

Outdated negative information

Negative information, such as late payments, should be removed after a specified period, but sometimes it might not get updated.

Solution: Zidaan requested the credit bureau to remove outdated negative information from his report.

Incorrect default date

If the default date on an account was reported inaccurately, it could negatively affect his credit score.

Solution: He cross-checked the actual default date with his records and raised a CIBIL dispute.

After meticulously correcting the errors in his CIBIL report, Zidaan felt a sense of relief and accomplishment. His efforts had paid off, and his CIBIL score reflected his true creditworthiness. Zidaan now knew that regular monitoring and timely dispute resolution were essential in maintaining a healthy CIBIL report.

As he moved forward with his financial endeavours, Zidaan spread the word about the importance of understanding CIBIL scores and resolving errors to his friends and family. He knew that in the ever-evolving world of finance, knowledge and vigilance were the keys to a prosperous financial journey.