CIBIL or Credit information bureau of India limited is the most popular credit information company in India. A cibil report is a record of your past credit history collected from different banks and financial institutions. CIBIL will also publish your score in your credit information report after analyzing your credit data with the help of of their proprietary algorithm. Credit score is the most important criteria used by banks to evaluate your loan application. But, it is observed that there have been large numbers of cases with problems and errors in cibil report. You should regularly update yourself regarding these problems so that you can improve your cibil for better deal on loans. Let us see different problems to answer how to correct cibil score-
- Error in your CIBIL report – There can be numerous errors in your cibil report including spelling mistakes in your name or address. Other errors include case of mistaken identity where someone else’s loan is credited to your account or incorrect amount overdue on your existing accounts. This mistake can bring down your credit score without your notice. Let us see solution for these errors –
Solution – First step you should take is to download your cibil report from cibil’s website. You should clearly look for any errors in your cibil report. Once, any error is noticed you should raise a dispute with cibil by filling their resolution dispute form. After verifying your details, cibil will remove any applicable errors from your cibil report.
- Days past due (DPD) – “Days past due” indicates that number of days your payment is past due date on that month. Anything above “000” DPD is seen in negative light by a bank or financial institution. Moreover, frequent late payments will result in lower score.
Solution – The best solution to it is to pay your EMIs on time and maintain a record of date of emi payments at your end. Other than that, you should avoid taking excessive credit on your name as it will limit your capacity of repayment of loan.
- Bad credit history – A poor credit report with a poor score will seriously affects your future credit worthiness in eyes of the bank. Cibil is the first impression in front of bank and a poor score will seriously hamper your chances.
- Pay your credit card bills and emi of loans on time.
- Do not rely on excessive debt for fulfilling your personal requirements.
- Maintain a record of dates for emi due date or credit card payment date.
- Check your score by downloading your credit history report from cibil’s website.
- Converse with your bank or CIBIL regarding any wrong information mentioned in your credit report.
It is utmost important for you to maintain a good score for better terms in any loan negotiations. You can easily solve above mentioned errors and problems to improve your score. When it comes to cibil, always remember that a higher score is always a better score.