Mastering the CIBIL Score Puzzle: Unraveling Challenges and Remedies

Mastering the CIBIL Score Puzzle: Unraveling Challenges and Remedies

August 21, 2023 By: admin0 comments

If you’ve ever applied for or taken out a loan, you’ve likely encountered the term ‘CIBIL Score’. With nearly a decade of experience in the financial services industry, I’ve often been asked by numerous clients for advice on addressing their low CIBIL score issues. It’s crucial to first understand what exactly CIBIL is and why the CIBIL score matters when applying for a loan. Thus, we’ll start by providing an overview of CIBIL before delving into CIBIL problems and their solutions.

Credit Information Bureau (India) Limited, also known as CIBIL, is a credit information company in India. It compiles credit reports by gathering data from various financial institutions and moneylenders. While CIBIL isn’t the sole credit information agency – others include Experian, Equifax, etc. – most banks and moneylenders use it to assess borrowers’ credit histories. Instances like missed loan installments, delayed EMI payments, or outstanding credit card payments are reported to credit information companies. This emphasizes the importance of taking your credit score seriously and striving to maintain a healthy score. (Learn How To Improve Your CIBIL Score)

Let’s examine common CIBIL score problems. Nowadays, many individuals post on social media about incorrect or entirely wrong information in their CIBIL reports. Below are three types of errors commonly found in CIBIL reports:

1. Incorrect personal details. Sometimes, errors in the CIBIL report may seem minor, such as a misspelled name or address. However, such errors can actually lead to serious CIBIL problems. In fact, they could even harm your credit health by associating someone else’s loan status with your report. Thus, rectifying these minor errors that impact your CIBIL score is crucial. Some individuals forget to update their new addresses or phone numbers, while others consider updating basic information a waste of time. If you fall into either category, you should know that CIBIL rewards you with a +1 point for updating your basic contact information.
2. Errors in Credit Balance. At times, CIBIL might display an incorrect balance. In such cases, it’s your responsibility to inform the bank about the correct credit balance so that it can be accurately reflected in your CIBIL report. You should review your report at least once a year to verify your balance.
3. Inaccurate overdue amounts. It’s possible to be unaware of your CIBIL Report and not realize that inaccurate overdue amounts are listed. These inaccuracies can exacerbate your CIBIL problems, as financial institutions or moneylenders might reject your loan application. Fortunately, you can obtain a free CIBIL report once a year (To get your free CIBIL report, click here) to assess your score.

If you or someone in your circle is seeking to improve their credit score, please reach out to us today on our WhatsApp number.

See how we improved the credit score of one of our clients from 560 to nearly 800 in just 45 days.

All it took was ensuring that their past records were rectified and preventing further credit mismanagement. For any questions about CIBIL or personal finance, write to us at info@mintrafinserv.com.