CIBIL or credit score is a 3-digit number that represents an individual’s creditworthiness. It is one of the multiple parameters used by financiers to arrive at one’s credit reliability. Other determinants include CIR, CCR, etc.
Credit Information Bureau of India Limited or CIBIL is the apex body issuing credit score and generating reports. It does so for 600+ million individuals and companies in India via information collected from various financial institutions.
Regardless, possibilities of errors in recording and transferring such information remain, which can result in an incorrect CIBIL score or report. Such discrepancy is known as CIBIL dispute, which must be resolved at the earliest to minimise the effects on one’s creditworthiness.
While updating the information at respective credit institutions can result in dispute resolution and rectification of records, it is a long process. Thus, the simplest and best way to initiate a resolution of CIBIL dispute is via an online application to CIBIL.
The process to initiate and resolve a dispute –
CIBIL provides one application form to raise all disputes.
Step 1 – Log in to your myCIBIL account on CIBIL’s official website.
Step 2 – Access the Credit Information Report (CIR) generated in your name. If you have already received your CIR from a lending institution and found the discrepancy, you must first obtain both CIR and CS provided by CIBIL before raising a dispute.
Step 3 – Proceed by clicking on the ‘Dispute’ tab to register the discrepancy.
Step 4 – In the CIR provided, you need to select the respective section or field that carries the discrepancy.
Step 5 – Next, select the account concerning the given dispute.
Step 6 – After this, either of the following two steps applies depending on the case you seek CIBIL dispute resolution for –
i. Dispute of credit information – Provide the correct value for the section disputed and click on submit.
ii. Dispute of account ownership – Select the type of dispute and proceed to submit.
Once a CIBIL dispute is submitted, the relevant fields are marked ‘Under Dispute’ and forwarded to the concerned financial institution. After reviewing the disputed field, the financier initiates reapplication for dispute resolution.
Once completed, you will be informed of the rectification or rejection. Meanwhile, you can check your CIBIL report dispute status online to confirm the progress.
Alternatively, you can also write a letter to CIBIL and apply for a resolution manually.
Now, take a look at the types of errors that can occur to complete the resolution process accurately –
Types of inaccuracies resulting in CIBIL dispute:
I. Data representing inaccurate current balance – It represents the total debt owed by you, the higher of which implies you owe more debt than you actually do.
II. Data showing an incorrect amount due – It represents a record of payments and amount overdue, implying inefficient management of finances. Such discrepancy hampers your eligibility to avail loans.
III. Inaccuracy in personal details – Inaccurate data of personal detail record bears a negative impact on your credit score too.
IV. Data showing inaccuracy in ownership – Inaccurate data for ownership implies accounts that do not belong to you have been recorded in your name and has a similar impact as other errors.
CIBIL dispute resolution must be completed at the earliest to minimise the discrepancy’s negative impact on your creditworthiness. Such resolution helps improve your credit score. Know that a CIBIL score of 750 and above is a mandatory requirement to avail advances like personal loans with ease from lenders like Bajaj Finserv.
They also bring pre-approved offers to make financing hassle-free and quick. You can enjoy these offers on several financial products like home loans, personal loans and business loans. To check your pre-approved personal loan, all you need to do is provide initials like your name and contact number.
As for the resolution of CIBIL dispute, you can expect a turnaround time of up to 30 days. It can also vary depending on the time taken by the concerned financier to complete the process. Once resolved, make sure to check your CIR and credit score to confirm the changes.
By Gaurav Mittal
who is a Content writer and he loves to write about Finance & Insurance Articles.