Friday, 29 April 2016

How to keep your CIBIL report clean of errors?

They say “To err is human”'
Coincidentally, this phrase would also fit the financial context with a little modification.

“To err is human and CIBIL report”

For all those who are lost in simplification, the above phrase means that a human being can make mistakes and a credit report can have errors. As in practice the lenders conduct a CIBIL score check before they start considering one’s loan application seriously. However, the lesser-known fact is that different kinds of inaccuracies can infest the credit report and affect one’s credit health by lowering the score. Frequent mistakes appearing in a credit report, which are not evident in a simple CIBIL score check, can be categorized into three parts: ownership, incorrect personal details, and inaccurate account details.
If the data regarding one’s personal details or accounts is not identifiable or some entries in one’s report regarding small personal loans do not ring a bell, then it is an ownership error.
CIBIL score check, which poses as an activity of high magnitude at every lending point, will bear wrong results in case of incorrect personal details. Credit Institutions send an individual’s personal details like his contact information (name, address, date of birth, PAN, telephone number) and his employment details to CIBIL. In case there is a change and one forgets to update and inform their credit institution, they may end up with an incorrect credit report.
The most detrimental error is the last one known as inaccurate account details. Given the nature of this error, it should ideally be called “inadequate” account details. This error can reflect in both accounts: secured (eg: home loans) and unsecured loans (eg: small personal loans). Many a times, lenders may forget to update a customer’s payments and an inaccurate current balance record or an overdue amount record might appear in that person’s CIBIL score check and CIBIL report. However, before one cries wolf, it is wise to acknowledge a small fact – the date. Any credit institution submits data to CIBIL within a period of 45 days. If you carry a CIBIL score check or purchase your credit report in this period i.e 45 days from your last payment, it very likely that your last payment is yet to be updated. Hence, always make sure to check the “Date Reported” column associated with that specific account in the report. Say, if the date in one of your small personal loans accounts or credit card account is more than 2 months old, there is definitely an error from the vendor’s side.
Once the CIBIL score check is done, the report is out, and a potential error has been identified, then the next innate step is to initiate a CIBIL dispute. Different online and offline remedies are available depending on the choice of the initiator.
The first and foremost thing is to determine the Control Number. A tool of prime importance while making dispute requests, the Control Number is an absolute must have while raising disputes. One cannot raise a dispute without the Control Number. After one does a CIBIL score check and gets the CIBIL report, he can find the number at top right hand side of the credit report.
The next step is to raise a dispute. If one has attained the credit report from the bank, he can follow the CSEV process. CSEV is an acronym for Complete, Select, Enter, get Validated. The comprehensive process of the same is a below:
  •    One is expected to visit the CIBIL website and Complete the online dispute form with proper details.
  •    Then, he must Select the section, which he wants to dispute. For example: eg payments related to small personal loans section.
  • Then he should Enter the correct or revised value in the selected disputed field.eg: correct value of EMI’s in case of small personal loans.
  • Finally , he should get the dispute Validated from the system and then assign it to the credit institution.
  • If the credit report has been obtained from the CIBIL website, the procedure of error rectification is slightly different. To keep it simple, one can simply remember an easy rule.
  • “MyCIBIL wants you to Click, Select, Enter and get Validated” Rationalizing the rule, it means that,
  •  One has to login to MyCIBIL with their id and password.
  • Then look for the “Raise a Dispute” Tab and Click on it.
  • Then look for the section, which one wants to dispute and Select that particular section.eg: small personal loans.
  • Then, Enter a correct and updated value for the same.
  • Get the dispute validated and assign the same to the concerned credit institution.
The offline ways of cleaning the credit report of errors are not herculean tasks either. One of them is the old school letter-writing way. You can raise a dispute request by writing to the CIBIL office situated at the following address Credit Information Bureau (India) Ltd, Hoechst House, 6th Floor, 193, Backbay Reclamation, Nariman Point, Mumbai 400 021.
The other popular and common method is to seek professional help from credit repair experts like Credit Sudhaar and let them do a good job. This organization has a separate team, which specializes in issue resolution. Apart from this, they also offer a plethora  of credit repair services like credit health check- up(CIBIL score check) –score improvement module, debt consolidation and complimentary assistance not only for small personal loans but also for heavy and secured loans.
After an individual has requested the dispute, in any of the one ways, the turnaround time is usually 30 days. It means that it will take a period of 30 days or earlier for any dispute to get resolved. Also, during this period, the status of that particular section in your credit report will be marked “Under Dispute”.
Cleaning the CIBIL report is one of the important steps involved in obtaining a bona fide and a good result. One can choose to neglect this step or wait until the last minute, but that may just delay the loan. After all, “A stitch in time saves nine!”

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