Your CIBIL (credit) score is a very important number that decides whether lenders will accept your loan application or not. Whenever you apply for a personal loan, the lender will consider your CIBIL score to identify your ability to make timely repayments. This points to the fact that having a good CIBIL score is crucial to availing credit, including any form of personal loan.
But what if your CIBIL score dropped because you missed out on a few EMIs? How does one go about repairing a low CIBIL score? You might have heard of agencies that offer to repair your credit score within three months and wondered how they manage to do that. Hence, it is important to keep in mind that there are correct and incorrect ways to improve your CIBIL score. Many agencies can fix your credit score, but if they resort to fraudulent means, you could end up in trouble at a later stage.
Here are three methods you should avoid to repair your low CIBIL score:
1. Change in the Permanent Account Number (PAN) information
Your PAN is a unique combination of numbers and alphabets and contains your financial history. Hence, you are required to submit your PAN details when you apply for a personal loan and changing one’s PAN information is the most convenient way to fix a low credit score.
Your PAN includes personal details such as your name, date of birth, and father’s name and it is nearly impossible that two different individuals have the same details. Financial lenders verify your identity by checking these combinations and any modification indicates the possibility of mischief.
To repair their CIBIL score, many borrowers end up applying for a different PAN and a different combination of your name, father’s name, and date of birth can give you a fresh credit life. However, you should refrain from resorting to this method as it is illegal to have more than one PAN.
2. Wrong updates
CIBIL never verifies the data shared by financial institutions. As such, a wrong update in personal details can give you an opportunity to repair your CIBIL score. Even a minor mismatch on part of a financial institution in personal details such as name, father’s name, and surname combination can give you a new credit life.
If you encounter any such mistake made by the financial institution, you must report the same immediately and stay away from this method of fixing the CIBIL score.
3. Mistaken identity
Borrowers can apply for a personal loan with low CIBIL score through wrong mapping. While applying for a loan, you may need to provide other identity proofs such as passport and driving license, among others. These identity proofs need to be mapped to your CIBIL account. This means, if your passport number is altered or changed in CIBIL details, your credit report will show something else.
If a financial institution maps somebody else’s information, such as his or her passport with your PAN details, and if that person has a good CIBIL score, you automatically get a fresh credit score. Certainly, you must not follow this method because you will land up in trouble if you are caught.
Before you apply for a Bajaj Finserv personal loan, you need to thoroughly check your CIBIL report. You must verify the report at least twice a year to identify any errors or misinformation. Individuals are facilitated with access to one free CIBIL credit report annually to maintain a check on their score.
If you are looking for a personal loan but have a low credit score, it is recommended to avoid the aforementioned methods. Instead, you must follow the right practices such as timely payment of dues, no defaulting, and avoiding additional debt unless you have paid all your outstanding dues.
For a personal loan you need to get in touch with us at Finserv MARKETS and avail quick disbursement, low EMI, minimal documentations and a host of other features. Your online personal loan application can be approved under just 3 minutes and the loan amount will be credited to your bank account within 24 hours! Your CIBIL Score determines your creditworthiness, you can check your CIBIL Score for free along with a Financial Health Check Report on Finserv MARKETS.
“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App”.