A CIBIL [Credit Information Bureau (India) Score], which is provided by the credit information company, TransUnion CIBIL Ltd, is meant to be an indicator of your financial health. Your score is premeditated on the types of loans taken out, the number of times a person has applied for a loan, and if they have repaid these loans in a timely manner.
CIBIL calculates a score between 300-900. The higher the number given, the better is an individual’s credit score. For example, while a score above 750 is considered ideal, scores between 550 and 699 are considered average. In the same manner, a CIBIL rank is calculated for companies and is provided on a scale of 10 to 1, 1 being the best rank. Rank 1 is only given to companies who have an outstanding loan amount between Rs 10 lakhs to Rs 50 crores. To maintain a good credit score, it is essential for individuals to stay apprised of their current score and work towards improving it. Staying vigilant about your credit score also helps root out discrepancies and may raise one’s credit score further.
For example, Mr. Ashish Kutchi, who had zero debts and four active credit cards with no overdue payments, was rejected the sanction of a car loan. After he analysed his Credit Information Report, he was astonished at the fact that his CIBIL score was a mere 522.
So why did he have such a low credit score despite a good credit history? There were 2 incidents he was unaware of. Firstly, his name, address and phone number were spelled incorrectly on his Credit Information Report and secondly, a merchant had wrongly charged his credit card for $900 instead of $350 about 8 years ago. The merchant disputed the transaction and Mr. Kutchi refused to pay and stopped using his card. This left a dent on his credit score and even years later, he is unable to procure a loan easily. A bad score also prevented him from getting cheaper interest rates. Thus, it is important to check your Credit Information Report and see if the details are correctly mentioned. If any discrepancies are found, you can immediately get the problem solved by contacting the CIBIL Grievance Redressal Cell.
CIBIL Entertains Four Types of Customer Interactions – Query, Complaint, Feedback, and Request
Here are the four interactions explained in detail:
If a customer wants to receive information about any of CIBIL’s products.
If a customer has availed of the service of a particular product but is not satisfied with it.
If a person is happy with a particular product or service or thinks there is room for improvement, feedback is provided which helps enhance the experience.
If a customer has any errors or corrections to be made in the Credit Information Report, he can raise a request and a CIBIL dispute is initiated to resolve them.
How can you Raise a CIBIL Dispute?
By now, it must be clear to you that a CIBIL Score/Rank is not just a set of numbers but has important implications. If there is any discrepancy related to it, users can initiate a CIBIL dispute online or offline for inaccuracies, account ownership and duplication of information that reflect in the credit report.
There are Two Types of CIBIL Disputes:
Any discrepancy in a company Credit Information Report can be referred to as a company dispute. These may be in the form of duplicate accounts, data inaccuracy in ownership details like PAN, credit type, company name, and loan amounts. The authorized signatory of the company has to raise the dispute.
Inaccuracy in an individual CIBIL dispute can be related to his/her personal details and issues related to duplicate accounts. For example, a single loan account may be incorrectly mentioned twice impacting the credit score. Such disputes can be easily resolved by filling a CIBIL dispute form.
If someone is still unhappy with the resolution from the CIBIL dispute, they can take it up to CIBIL’s escalation desk where they will notify their senior managers to review the request.
There are 3 Levels
Escalate Level 1:
The complaint is raised with the Manager – Consumer Services who responds in 15 business days.
Escalate Level 2:
The complaint is raised with the Assistant Vice President – Consumer Services who will analyze the case and respond in 10 business days.
Escalate Level 3:
The matter is escalated to the Chief Operating Officer who will resolve it within 8 business days.
Thus, regularly keeping track of your CIBIL Score is extremely essential. You can now check your CIBIL score and receive a comprehensive financial evaluation with the help of the Financial Health Check Report (FHCR) available on Finserv MARKETS for free. The FHCR is a customized report curated according to your financial transactions which is easily comprehensible and accessible online from anywhere.
A low CIBIL score doesn’t mean that you will never be able to procure a loan to buy your dream house, open a business or purchase your favorite car. Analyzing its causes and taking appropriate steps to rectify it can be a good step to getting your loan sanctioned.
Once you have determined your credit score and/or taken the necessary steps to improve it, you can avail of the Bajaj Finserv Personal Loan on Finserv MARKETS in 3 easy steps. An amount of up to INR 25 Lakhs, starting at an affordable interest rate of 12.99% p.a can be availed. The personal loan available on Finserv MARKETS has a long repayment tenure, zero collateral requirements, quick online processing and fast disbursal.
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