Things That Can Go Wrong with Your CIBIL Report

Four credit information bureaus operate in India and of these, TransUnion CIBIL is the most popular. The credit score assigned to borrowers by TransUnion CIBIL is known as the CIBIL score. In India, the words credit score and CIBIL scores are therefore used interchangeably. The higher one’s credit score or the closer it is to 900, the better their chances of getting approved for a loan or a credit card. 

Sometimes, by mistake, banks and NBFCs pass on the wrong information to credit information bureaus or credit rating agencies. This misinformation could be related to a borrower’s identity or repayment history. Errors in CIBIL reports can make it difficult for lenders to identify borrowers. Similarly, they can also negatively impact a borrower’s CIBIL score or CIBIL rating. Credit users must, therefore, check their CIBIL report from time to time for errors and do everything to make sure they have a good CIBIL score.

Also Read: Easy Ways to Maintain a Good Business Credit Score 

Before we get to what borrowers can do to get mistakes eliminated from their CIBIL report, let us understand the different types of errors one can find in their CIBIL report. 

Common CIBIL Report Errors – 6 Ways In Which Your Report May Go Wrong

1.Errors Related to One’s Personal Details or Identity

The information about you on your CIBIL report helps borrowers identify you. Errors related to name, date of birth or email ID can make it difficult for lenders to access your report. In this case, a lender will receive a loan application from you and enquire about you. Unfortunately, due to the error in your report, they will be unable to get access to your CIBIL report and CIBIL score which will lead to them rejecting your loan application. 

Identity-related issues can be major ones too. Several people around the world share the same name and this, sometimes, leads to confusion. At times, borrowers find loans under their name that they had never taken. Such misinformation can affect one’s credit rating very badly. In conclusion, borrowers must check their CIBIL report at least once every year, especially if they are planning to apply for a home loan or a loan of any kind. 

2.You Have Been Tagged to the Wrong Account 

Yet again, since so many people across the world have the same names, sometimes it so happens that borrowers see an account under their name that does not belong to them, and they are not operating. Now, such an error can happen due to misinformation or could also be indicative of fraudulent usage of identity. In either case, you must have your credit information agency act. If the account under your name shows ‘settled’ or ‘written off’, it could be especially bad for your credit score, as these words indicate loan default in the past.

Also Read: How to Change the Written-Off Status in CIBIL?  

3.Errors Related to Days Past Due

Days Past Due is a term that is used to denote the number of days that have passed since you missed your EMI payment. For lenders, a clean repayment history is very important. Too many late payments and missed EMIs make lenders dubious about a borrower’s repayment capacity. Borrowers who have an XXX or 000 under their name in their credit report are people who have missed EMI payments in the past. However, sometimes, borrowers find a numerical value other than XXX or 000 under their name even when they have paid all their dues on time. Such a mistake can have terrible consequences for a borrower’s credit score and must be reported immediately. 

4.Errors Related to Balance Amount

Many times, the errors in a CIBIL report are related to the balance amount. Some borrowers find that their account has been listed down with the wrong balance or wrong credit limit. It is also not uncommon for borrowers to find the same debt listed more than once on their credit report. All such errors damage a borrower’s CIBIL score and CIBIL report. 

5.Errors Related to Closed Accounts

Once you have repaid a loan completely, the account is considered closed. Sometimes, borrowers see closed accounts as open in their CIBIL report. Similarly, sometimes, errors under this category are related to the day on which the account was opened, the day on which the last payment was made, the date of the first delinquency, etc.  Such errors have a direct negative impact on a borrower’s CIBIL report, CIBIL score and home loan applications. Therefore, these errors must also be reported and fixed immediately. 

6.Errors Related to Overdue Amount

If under one of your loan accounts, you see an overdue amount even when you have honoured your repayment obligation, you must report it to the credit rating agency. Such errors bring down one’s CIBIL score and must be corrected before they do too much damage. 

Also Read: Tips to Help You Improve Your CIBIL Score 

What to Do If You See an Error in Your Credit Report?

Errors creep into CIBIL reports. Banks and NBFCs try hard but it is difficult to keep track of millions of credit users. The onus lies on borrowers to make sure their CIBIL report is clean and devoid of any errors.  

If you see any errors in your CIBIL report, inform the credit agency immediately. You can report the mistake on phone, by filling out an application or by simply writing an email to them. You must also reach out to your lender and request that they pass the correct information to the credit rating agency. If you see something that indicates fraudulent identity, immediately inform your lender so that you do not get into trouble. 

Upon receiving an email from you, the agency will look into the mistake. It will take a few days for them to act on the complaint made by you and rectify the error in your CIBIL report and a few more days for these changes to reflect in your CIBIL report. So, be patient.  

Final Words 

If you are planning to apply for a Housing Loan, check your CIBIL score online at least six months in advance. This will help you take corrective measures in time so that your CIBIL score is above 750 by the time you begin your loan application.