A CIBIL score is a three-digit number that represents the creditworthiness of a borrower. It ranges between 300 and 900 and is minutely evaluated by lenders while approving loans. A score ranging between 700 and 749 is considered a good score and significantly increases the chances of loan approval. However, an erroneous CIBIL report may negatively impact the CIBIL score and unnecessarily create confusion among borrowers. It is important to know the steps to raise a CIBIL dispute to mitigate the chances of loan disapproval.
How can one raise a CIBIL dispute?
Here is a step-by-step guide to raising a CIBIL dispute online.
Step 1: Visit the official website of the CIBIL portal and log in using the necessary credentials.
Step 2: Go to the credit report section
Step 3: Click on ‘dispute an item’ after visiting the dispute centre and carefully go through the instructions
Step 4: Fill Up the dispute resolution form
Step 5: Select the type of information that needs to be rectified (personal information, contact information, employment information, account information and others) and click the submit button.
A dispute ID will be generated that must be kept handy for checking the status of a dispute on the CIBIL report
What is a CIBIL dispute?
A CIBIL score range between 300-549 is said to be low and depends on several factors like debt-to-income ratio, credit behaviour, history of loan prepayment and other discrepancies. A CIBIL dispute is a process of identifying and resolving inaccuracies in a CIBIL report. Accurate rectification of errors improves the CIBIL score, enabling one to secure and enjoy better credit options in future.
What are the types of CIBIL disputes?
There are two types of CIBIL disputes:
- Company dispute
It applies to companies that encounter inaccurate data about ownership and credit accounts. Besides, if an account appears in the Credit Information Report but does not belong to a company comes under a company dispute. Furthermore, an account repeatedly appearing in a report necessitates correction which must be initiated by an authorised person of a company.
Below mentioned, are some parameters that can be disputed
- Name of company
- Registered address
- Branch address
- Company PAN
- Current balance
- Bank remarks
- Asset clarification
- Individual dispute
Individuals must raise a CIBIL dispute if they notice an error in their names, inaccurate data filing and wrong address. Furthermore, a single account may reflect twice in a CIBIL report, lowering the overall credit score. So, individuals planning to apply for home loans or any other type of loan must promptly take action and raise a CIBIL dispute.
Here are some other parameters that can be disputed by an individual.
- Contact details
- Payment status
- PAN number
- Employment details
What is the process of dispute resolution?
After successfully raising a dispute, the discrepancies are meticulously evaluated and marked as ‘under dispute’. CIBIL then passes the application form to the concerned lenders to fix the errors. Depending on certain factors, a lender can either accept or reject the dispute. However, the ‘under dispute’ status is removed if the lender accepts the dispute. This entire process may take up to 30 days, and individuals receive updates about the dispute status every seven days. One receives an SMS update as soon as the corrections have been made.
How can one check the status of the CIBIL dispute?
For company disputes, a unique ID created by CIBIL enables applicants to track their dispute status. Similarly, one may visit the official website of CIBIL and log in using the necessary credentials. Then, one may view the status of the CIBIL dispute by clicking on the ‘dispute status’ option.
How to improve the CIBIL score?
A good CIBIL score not only increases the chances of loan approval at lower rates but can also help individuals acquire a well-paid job. Here are a few points one must keep in mind to improve the CIBIL score.
- Timely bill payments
One of the best ways to improve CIBIL scores is by paying EMIs and bills on time. The CIBIL report keeps track of delays, reducing the score and chances of loan approval.
- Pay off debts
One must pay off the debts within the stipulated tenor to improve the CIBIL score. However, one must note that it takes time for the CIBIL score to improve and requires patience.
- Check CIBIL score online
It is necessary to check the CIBIL score online once in a while to promptly raise a dispute in case of discrepancies in the CIBIL report. However, it does not directly improve the score.
- Avoid overusing credit cards
Overusing a credit card beyond the specified limit can negatively impact the CIBIL score. So, individuals must not get tempted by the lucrative credit card offers and use it wisely. It is best if one uses a credit card below 50% of the maximum limit.
- Avoid taking multiple loans
One must avoid taking multiple loans in one go. Instead, one should completely repay the debt of one loan and then opt for another loan. It would enable an individual to maintain an optimum debt-to-income ratio.
- Maintain a good credit mix
A good credit mix positively impacts the CIBIL score and helps individuals secure loans at low rates of interest. An ideal mix comprises a home loan, personal loan, and credit card. It assures the borrowers that an individual is capable of dealing with different financial scenarios.
Many popular lending institutions extend pre-approved offers on home loans and loans against property. It expedites the entire lending process. Existing borrowers can check for these offers by using just their name and contact details.
It is necessary for every individual to smartly manage the finances and spend wisely as per the overall budget and income. Making a proper budget while planning to spend on certain things is a wise way one can keep a check on finances. Lastly, one must be cautious and monitor the CIBIL report. In case of any discrepancies, the above steps will enable an individual to seamlessly raise a CIBIL dispute.
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