How to Rectify CIBIL Report

A negative credit report doesn’t appear overnight—it often builds up over time due to missed payments, outstanding debts, or poor financial habits. In some cases though, the issue may not be your fault. Errors such as incorrect account details, duplicated entries, or loans wrongly marked as unpaid can also impact your CIBIL score. Whether the cause is financial mismanagement or a reporting mistake, it’s essential to take prompt steps to fix it.

If you are wondering how to rectify a CIBIL report, start by checking for errors and raise a dispute with the credit bureau to correct them. Leaving a negative credit report unchecked could reduce your chances of getting approved for future loans or credit cards. 

It may also lead to higher interest rates, as lenders may see you as a high-risk borrower. To avoid such setbacks, it’s important to review your credit report regularly and take the necessary steps to correct any issues.

Here’s how you can identify the root of the problem and begin the process of rectifying your negative credit report.

• Regularly check your credit report for errors like incorrect personal information, account mismatches, or outdated data
  

• Dispute any errors with the credit bureau and inform the lender for quicker resolution
  

• Monitor the status of disputes and ensure corrections are reflected in your updated report
  

• Clear outstanding dues, reduce credit utilisation, and maintain timely payments to improve your credit score
  

• Use the Bajaj Markets app to set goals, track progress, and get personalised tips to boost your credit health

Rectifying errors in your credit report is essential for maintaining a good credit score and ensuring timely loan approvals. 

Follow these detailed steps to fix inaccuracies in your CIBIL report:

• Step 1: Download and Review Your Credit Report

Get your credit report from an authorised credit bureau such as CIBIL. Carefully review all personal and financial details, including your name, address, loan information, and payment history.

• Step 2: Identify Errors or Negative Items on Report

Look for any incorrect or outdated information, such as duplicate entries, wrong account statuses, or incorrect outstanding balances. Note each issue you find for reference.

• Step 3: Raise a Dispute with the Credit Bureau

Once you’ve identified errors, raise a dispute directly with the credit bureau. Visit the bureau’s official website and fill out the dispute form. It is important to understand the dispute process before submitting the form to ensure accurate and complete information.

• Step 4: Contact the Lender for Verification

Notify the concerned lender about the error in your report. This can speed up the verification process and help resolve the dispute more efficiently.

• Step 5: Submit Supporting Documents

If required, submit any supporting documents, such as account statements, receipts, or payment proofs, to help back your claim and provide evidence of the mistake.

• Step 6: Follow Up and Track Status

Regularly track the status of your dispute through the bureau’s portal to ensure it is being addressed. Once resolved, review your updated report to confirm that corrections have been made. If the issue persists, follow up with additional clarification or documentation.

Learn the specific negative labels and flags that may appear in your credit report and what each one means.

Negative remarks indicate issues in your credit behaviour or repayment history. These entries can lower your CIBIL score and influence a lender’s decision to approve new credit. Understanding what each remark means helps you identify the root problem and take corrective action.

• Late Payments (30/60/90+ DPD)

 “Days Past Due” shows how many days your EMI or credit card bill was overdue. A 30, 60, or 90+ DPD remark indicates repeated delays in payments, which significantly affects your credit score.

• Defaults

A default indicates that you have not paid your loan or credit card dues for an extended period. Lenders view this as a serious risk, and it can remain on your report for years.

• Write-offs

When a lender concludes that the dues cannot be recovered, the account is marked as “written off”. This means the lender has closed the loan as a loss, and it is a major negative remark in your report.

• Settled Accounts

If you settle a loan by paying less than the total outstanding amount, the account will be reported as “settled”. This signals that you did not repay the full amount and may affect future loan approvals.

• Post Write-off Settled Status

This appears when you make a partial payment after the lender has already written off the loan. It still indicates incomplete repayment and is treated negatively by lenders.

• High Credit Utilisation

Using most of your credit limit—typically above 30%–40%—shows heavy reliance on credit. This affects your score because it signals financial stress or limited repayment capacity.

• Multiple Loan or Credit Enquiries

Every loan or credit card application triggers a hard enquiry. Many such enquiries in a short time suggest credit hunger, making lenders cautious.

• Restructured or Rescheduled Loan Status

If your lender modifies your repayment schedule due to financial difficulty, the loan is marked as restructured or rescheduled. While it may provide temporary relief, it indicates reduced repayment ability.

• Moratorium-related Remarks

If you opted for an EMI moratorium, your report may show remarks indicating paused payments during that period. While not always negative, lenders may still consider it when assessing risk.

• High Outstanding Dues

Large unpaid balances on credit cards or loans reflect poor repayment discipline. This remark can lower your score until dues are cleared and updated.

• Irregular Repayment Behaviour

Frequent delays, missed EMIs, or inconsistent repayment patterns create a red flag. Lenders rely on this remark to evaluate your long-term credit reliability.

Understand why negative information appears in your credit report and how different financial actions or errors can affect your score.

Negative entries in your credit report can appear due to repayment issues, high credit dependence, reporting mistakes, or actions taken by lenders. These remarks help lenders assess how responsibly you handle credit. Here are the most common causes of a negative credit report:

• Late or Missed EMI Payments

Even a single late EMI or credit card payment can reduce your score. Repeated delays create long-term negative marks that stay on your report for years.

• Loan Defaults

When you stop repaying a loan for a prolonged period, the lender marks it as a default. This signals severe credit risk and has a major impact on your credit score.

• Credit Card Payment Delays

Paying your credit card bill after the due date, or only after reminders, is reported as delayed repayment. These entries lower your score and indicate irregular financial discipline.

• High Credit Utilisation Ratio

Using more than 30%–40% of your available credit limit shows heavy reliance on credit. It suggests potential repayment stress and reduces your creditworthiness.

• Outstanding or Overdue Balances

Leaving unpaid dues on loans or credit cards—even small amounts—creates overdue remarks. These entries stay until the lender updates your repayment status.

• Settled Loan Accounts

When you repay less than the total outstanding amount and close the loan, the account is reported as “settled”. This signals incomplete repayment and affects future loan approvals.

• Written-off Accounts

If the lender categorises your loan as unrecoverable and writes it off, the remark appears in your report. This is treated as a high-risk indicator by lenders.

• Multiple Hard Enquiries in a Short Period

Applying for several loans or credit cards close together creates multiple hard enquiries. This suggests credit hunger and lowers your score.

• Frequent Loan or Credit Card Applications

Repeated applications, even if rejected, indicate financial strain. Lenders may see this behaviour as a sign of instability.

• Restructured or Rescheduled Loans

If your loan terms were modified due to financial difficulty, the lender reports it as “restructured”. This remark shows reduced repayment capacity.

• Non-payment of Minimum Credit Card Dues

Consistently paying less than the minimum amount or failing to pay it at all leads to overdue entries and late fees, harming your credit score.

• Incorrect or Outdated Information Reported by Lenders

Sometimes, lenders delay updating your repayment status or incorrectly report overdue amounts. These errors appear as negative entries until corrected.

• Identity Theft or Fraudulent Accounts

Accounts you never opened may appear due to identity theft or mismatched records. These can severely damage your score if not disputed quickly.

• Co-borrower or Guarantor Defaults

If a co-borrower or someone you guaranteed a loan for does not repay, the default is reflected in your report as well. Your shared responsibility affects your own credit health.

The time needed to fix a negative credit report depends on the type of issue and how quickly it is resolved.

If you are correcting an error through a formal dispute, the credit bureau usually takes around 30 days to investigate. During this period, the bureau checks the information with the lender and updates the report once the issue is verified.

For genuine negative entries—such as missed EMIs, defaults, high credit utilisation, or overdue balances—improvement takes longer. Positive changes like clearing dues or lowering credit usage typically reflect within 30 to 45 days, depending on when your lender sends updated information to the bureau.

In simple terms:

• Errors can be corrected within a month if disputed properly.
  

• Actual negative behaviour may take several months of consistent good repayment habits to show improvement.

Regularly reviewing your credit report helps you track these updates and ensure everything is accurate. Once the negative items are corrected, you can start working on long-term credit improvement using tools like the Bajaj Markets app.

Once your credit report is fixed, improving your credit score becomes a long-term goal. The Bajaj Markets app simplifies this with a dedicated feature called  “Improve Your Score”. 

Here’s how you can use it:

• Set a target score you want to reach (e.g., from 702 to 777)
  

• Choose your timeline between 3 to 6 months
  

• The app calculates whether your goal is achievable and shows a clear indicator

This helps you take control of your credit journey by turning it into a measurable, trackable goal, just like a fitness tracker but for your finances. 

The app doesn’t help you plan, but it guides you with practical steps tailored to your credit profile. These tips are customised based on what’s affecting your score the most. 

To help you learn more, the app also features a Credit Score Quiz. It tests your understanding of how credit works, busts common myths, and offers valuable insights—making the learning process engaging and simple. 

Whether you’re just getting started or working toward a better score, the Bajaj Markets app gives you the tools to improve it.