How to get CIBIL score corrected: A step-by-step guide for India

Meet Varun, a 30-year-old IT professional from Bangalore who was excited about applying for a home loan to buy his dream house. He confidently submitted his loan application, only to receive a rejection from the bank. Confused, Varun decided to check his CIBIL score, only to discover that it was lower than he expected due to some errors in his credit report. Like Varun, many people in India are unaware that mistakes in credit reports can negatively impact their CIBIL scores, making it difficult to secure loans or credit cards.

In this blog, we will walk you through how to get CIBIL score corrected, using Varun’s experience to illustrate the steps involved. If you’ve faced a similar situation or are looking to improve your credit score by correcting inaccuracies, this guide will help you.

Understanding CIBIL score and why it matters

Before diving into how to get CIBIL score corrected, let’s first understand what a CIBIL score is and why it’s important. The CIBIL score is a three-digit number that represents your creditworthiness, based on your credit history. In India, this score typically ranges from 300 to 900, with higher scores indicating better credit health.

A good CIBIL score (generally 750 and above) is crucial for securing loans at favorable interest rates, getting approved for credit cards, and accessing other financial products. Errors in your credit report, such as incorrect personal details, closed accounts showing as open, or missed payments that were actually paid on time, can bring down your score unfairly. This is why it’s essential to regularly check your credit report and ensure that all the information is accurate.

How to get CIBIL score corrected: Varun’s story

When Varun discovered that his CIBIL score was lower due to a reporting error, he decided to take immediate action. Here’s the step-by-step process he followed to get his CIBIL score corrected.

Step 1: Get Your CIBIL Report

The first step in how to get CIBIL score corrected is to obtain your credit report. Varun logged onto the CIBIL website and followed these steps:

Sign up or log in: Varun registered on the CIBIL website using his personal details like PAN card number, name, and date of birth.
Request your report: CIBIL offers one free credit report per year. Varun used this free service to download his credit report and review it carefully.
Check for errors: Varun found that his report incorrectly showed an unpaid credit card bill from two years ago, even though he had settled the bill in full.

Tip: It’s essential to go through your CIBIL report thoroughly, looking for any discrepancies such as incorrect account details, wrong outstanding balances, or closed loans still showing as open.

Step 2: Identify the Errors

Once Varun had his credit report, the next step was to pinpoint the errors that were affecting his score. Common errors that may lead to a lower CIBIL score include:

Incorrect Personal Details: Errors in your name, address, or PAN number can lead to misreported information.
Closed Accounts Showing as Active: If an account you’ve closed is still reported as open, it can negatively impact your score.
Wrong Outstanding Balances: If a loan or credit card shows a higher outstanding balance than what you’ve already paid off, it can hurt your score.
Duplicate Accounts: Sometimes, loans or credit cards may be reported twice, creating a false impression of higher debt.

Varun’s error involved a credit card bill he had paid in full, but the report still showed it as unpaid. This led to a significant drop in his score.

Step 3: Raise a Dispute with CIBIL

After identifying the error, Varun had to inform CIBIL and the concerned bank about the mistake. The next crucial step in how to get CIBIL score corrected is to raise a dispute.

Here’s how Varun did it:

Visit the CIBIL website: Varun logged into his CIBIL account and navigated to the ‘Dispute Resolution’ section.
Fill out the dispute form: He filled out an online dispute form, providing the necessary details such as the control number of his report (a unique number present on the credit report) and clearly explained the error.
Submit the dispute: Varun submitted the form, making sure to provide all relevant information, including the account number and the specific error he wanted corrected.

Tip: Be as specific as possible when describing the issue. Include account numbers, dates, and any other relevant details that will help CIBIL and the lender understand the error.

Step 4: Follow Up with the Lender

CIBIL processes your dispute and communicates with the concerned lender (in Varun’s case, the credit card company) to verify the error. However, Varun didn’t stop there—he decided to follow up directly with the credit card company as well.

Here’s what Varun did:

Contact the lender: He called the customer service department of his credit card provider and informed them about the incorrect reporting. He provided proof of his full payment (such as bank statements showing the payment was made).
Send a formal letter or email: For a more formal approach, Varun also emailed the bank’s grievance redressal officer, attaching copies of the payment receipts and requesting them to correct the error.

Tip: Always keep a record of your communication with the bank or lender, including email confirmations, reference numbers, and any responses you receive.

Step 5: Wait for Resolution

Once a dispute is raised, CIBIL typically takes 30 days to investigate and resolve the issue. During this time, they coordinate with the lender to verify the details and make any necessary corrections. If the lender confirms that the error was indeed a mistake, CIBIL will update your report and adjust your credit score accordingly.

Varun waited for a month while CIBIL and his credit card provider sorted out the issue. After 30 days, CIBIL informed him that the dispute had been resolved, and his credit score was updated.

Tip: Be patient during this process. While it can take up to 30 days, rest assured that CIBIL is working to correct the error.

Step 6: Recheck Your Credit Score

After receiving confirmation that his dispute had been resolved, Varun downloaded his updated credit report to ensure that the error was corrected and that his CIBIL score had improved. Sure enough, the credit card bill issue was fixed, and his score increased to a healthy 780, putting him back on track for his home loan application.

Tip: Always check your credit report after the dispute resolution process to verify that the correction has been made and your score has been updated.

Maintaining a healthy CIBIL score

Once Varun had his score corrected, he learned the importance of maintaining a healthy CIBIL score. By paying bills on time, reducing outstanding debts, and avoiding multiple loan applications, he made sure his score remained strong for future financial needs.

Conclusion

Knowing how to get CIBIL score corrected is essential for anyone who has faced errors in their credit report. Just like Varun, you can follow these steps to correct mistakes, improve your credit score, and ensure that your financial future remains bright. Regularly monitoring your credit report and addressing discrepancies promptly will help you maintain a healthy score and avoid any surprises when applying for loans or credit cards.

FAQs

How to get CIBIL score corrected if there’s an error on my credit report?

To get your CIBIL score corrected, first download your credit report and identify the error. Then, raise a dispute with CIBIL through their online platform, providing all relevant details. You should also follow up with the concerned lender to speed up the resolution process.
What kinds of errors can affect my CIBIL score?

Common errors include incorrect personal details, closed accounts showing as active, wrong outstanding balances, missed payments that were actually made, and duplicate accounts.
How long does it take to resolve a dispute with CIBIL?

Typically, CIBIL takes up to 30 days to investigate and resolve disputes. They coordinate with the lender to verify the details and make necessary corrections.
Can I raise a CIBIL dispute for free?

Yes, you can raise a CIBIL dispute for free through the CIBIL website. You are also entitled to one free credit report per year to check for any discrepancies.
What should I do if my lender doesn’t correct the error on my credit report?

If your lender doesn’t correct the error, you can escalate the issue by contacting their grievance redressal team or filing a complaint with the banking ombudsman.