CIBIL Errors and How To Correct Them

Your CIBIL report is a detailed record of the current status of all the lending instruments that formal Indian lenders have sanctioned in your name. The elements of your CIBIL report determine your CIBIL score, a three-digit figure that indicates your creditworthiness. Sometimes, your CIBIL report may have certain errors which must be rectified. Failure to do so can reduce your CIBIL score and, in turn, your chances of getting a loan or a credit card in the future. This article will tell you about the kind of CIBIL errors you can find in your report and give you a step-by-step breakdown of the CIBIL report correction process.

What Does Your CIBIL Report Comprise

Your CIBIL report is made up of the following:

Personal Information: This section includes information such as your name, date of birth, gender, PAN, and passport number.

Contact Information: This part of your CIBIL report will have information such as your permanent address, your current residential address (in case the two are different) and your office address. Additionally, it will also have phone numbers to reach you at work or home.

Employment Information: Here, you will find information such as your employment type (salaried/self-employed) and information pertaining to your monthly and annual income.

Account Information: This section will be made up of details concerning your active loan accounts as well as your closed ones. For every account, you will be able to see the amount you borrowed, your payment frequency, your EMI amount, and your outstanding balance.

Inquiry Information: This particular section will tell you about the number of lending institutions that have inquired about your credit health. Lenders only check your credit report when you apply for a loan or credit card, which is known as a hard inquiry. Alternatively, a lender may check your credit score to make pre-approved offers for credit, also known as a soft inquiry.

What are the Types of CIBIL Errors

The kind of errors you can find in your CIBIL report are:

Incorrect Personal Information: Sometimes, your CIBIL report may include an incorrectly spelt name or PAN information. It is also possible that it does not reflect your accurate permanent address, age, or date of birth. 

Incorrect Overdue Amount/Credit Utilisation: At times, the amount that you actually owe may be lower than what your CIBIL report reflects. That may be the case because either the lender has not shared the updated information with CIBIL. This must be looked into promptly as well. 

Duplication of Accounts: Sometimes, CIBIL prints the same loan/credit account more than once, which increases the number of your active accounts. A higher number of active accounts will reduce your CIBIL score. If this issue is left unresolved, this will negatively impact your CIBIL score and credit eligibility. Hence, this issue must be resolved as soon as possible, especially if you plan on taking any more credit in the future.

Unrecognisable Account: It is entirely possible that CIBIL may make a mistake and add a loan account that does not belong to you. Either that, or you have become a victim of identity theft. If it is a case of identity theft, the inevitable default that the perpetrator may cause will significantly reduce your chances of getting any credit in the future. Whatever the case may be, if these discrepancies or inconsistencies are left unchecked, it could spell disaster for you. Hence, you must promptly raise a dispute upon spotting such errors.

Incorrect Reporting of Active Accounts: Sometimes, a loan that you prepaid/foreclosed months ago may still show as active in your CIBIL report. This could happen if the concerned lender has not updated CIBIL about the same. The number of active credit accounts plays a big part in the calculation of your CIBIL score. The lower the number of your active loan accounts, the higher your CIBIL score. Hence, it is always important to look for such inconsistencies and promptly report the same.

How to Rectify CIBIL Errors

The steps you must follow to correct the mistakes in your CIBIL report are:

1. To initiate the CIBIL correction online process, download your CIBIL report. Note that you can only do this if you have a subscription plan.

2. Spot the 9-digit-long control number and then identify the problem area of your CIBIL report.

3. Fill out an official online dispute form that you will find on the CIBIL website. Here, you must mention your personal details and the details of the error in addition to the control number. Post that, click on ‘Submit’ to proceed.

4. Wait for CIBIL to get back to you with an update.

Note that it could take up to 30 days for your CIBIL report correction to be made. Once the error is fixed, the updated CIBIL report will be mailed to you. Additionally, you must remember that the errors will only be rectified if the lending institution authenticates your dispute. To build your case, you can always submit the necessary proof while filling out the application form to support your claim.