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COMMOM PROBLEMS AND ERROS IN CIBIL SCORE

CIBIL score has a direct impact on your financial life. A higher value suggests a lower risk of default and vice versa.

Followings are the commonly seen errors that can cause problem in discrediting your CIBIL:

1.Wrong Payment history:

5. Late payments or outstanding dues do the biggest damage to One's Cibil score.
5. This may happen when a lender reports a credit activity incorrectly.
5. For example, they may report delayed in payments even when you had paid the dues on time; or report outstanding balance, which has been paid off.
5. An immediate inquiry to the bank shall be made, if required complaint can be filed by following the mechanism of lender’s internal hierarchy.

2. Incorrect personal Information:

5. One's details in the credit report may have basic errors, like a mistake in the spelling of your name, address, or PAN.
5. While they do not impact your CIBIL, but a mismatch between your documents and credit report is likely to lead to rejection of your loan or credit card application.
5. One can report and update their details online or by visiting the bank as report is made on the details bank provide to cibi 

3.Various entries on the same account:

5. Such entries usually appear in your credit report when you transfer your loan from one lender to another.
5. Your outstanding is shown twice several times, both against your present and former lenders’ names, doubling your actual debt.
5. This can drastically impact your cibil.
5. One can directly make a report of this by applying for online on cibil bank for update.

4. Mistaken Identity:

5. Every so often a credit account of some other customer appears under your name in your credit report.
5. This happens because of similar names, addresses, or incorrect account details, like PAN number.
5. If you see an incorrect credit account displayed in your credit report, immediately report it to your lender and get it resolved.

5. Delay in payment update:

5. when the credit limit on your credit cards is extended, the bank sometimes misses or delays reporting it to the credit bureau.

5. In that case, when you start spending more through the credit card, it leads to higher credit utilization, which in turn leads to a drop in your cibil.
5. You should also check if your monthly payments have been updated in your credit report.
5. Also- If you are unable to make payments on time, make sure to contact your bank or financial institution about a credit plan.

 

6. Fraudulent transaction:

5. Make sure to carefully check each account and see if they were made by you.
5. Identify theft for a credit card is not uncommon.
5. If you find any unknown account or transaction under your name, make sure to report it to your bank and also to the credit bureau.

Some general advise that can be followed for a better cibil:

5. It is always advisable for you to be well with your finance and keep regular checks on it.
5. It is better to keep your daily life in your hand, make payments on time to keep your score in check.

For More Expertise and guide on your finance, feel free to contact us.