CIBIL Dispute: All You Need to Know About CIBIL Dispute Resolution

The Credit Information Bureau (India) Limited, commonly known as CIBIL, plays a crucial role in maintaining credit records and generating credit scores for individuals and businesses. However, at times, there may be a possibility of finding inconsistencies in your credit report. These could include typos, incorrect information, or other discrepancies. All of these can have a detrimental effect on your credit score, which in turn may affect your creditworthiness. In such cases, you can raise a complaint with CIBIL, which is known as a CIBIL dispute. 
Read on to find more information about CIBIL dispute resolution and how to raise one by following some simple steps.

What is CIBIL Dispute?

Let’s first understand what the CIBIL score is and why maintaining a good score is important. A CIBIL score is a three-digit numerical representation assigned to you by TransUnion CIBIL based on factors like your credit history, payment accuracy, loan applications, and more. It reflects your creditworthiness and overall credit health, which is used to assess your likelihood of repaying your loan within the specified time limit. Your CIBIL score makes up a part of your credit report.
When errors or inconsistencies appear in your credit report, they can harm your credit score and, consequently, your eligibility for loans. Hence, it is crucial to address these inaccuracies promptly by raising a concern with CIBIL. This process, known as a CIBIL dispute, involves submitting a request for a resolution to the credit agency. By doing so, you can ensure that your loan or credit card prospects are not hindered. It also makes sure that you can access the funds you are eligible for without any hassle.

Common Reasons for CIBIL Disputes

Some of the most common discrepancies that can occur in your credit history and can be raised for CIBIL dispute include:

• Incorrect Personal Information: Your personal details are required by credit or financial institutions to verify your identity and employment. This includes your name, contact number, address, date of birth, income, etc. If any of these are incorrectly mentioned in your credit report, then you must immediately raise a CIBIL dispute and have them rectified quickly.
• Errors in Account Details: This is a common issue that people face while checking their credit reports. Sometimes, there can be errors in the account details such as incorrect payment history, unauthorised charges, or duplicate accounts. In such cases, you should raise a CIBIL dispute and have the incorrect details rectified as soon as possible.
• Unclear Ownership: Another common reason for CIBIL disputes is unclear ownership of the accounts. If you find any such discrepancies in your credit report, you should immediately raise a CIBIL dispute and have it resolved.

Types of CIBIL Disputes

There are different types of disputes that can arise in an individual’s or a company’s credit report. Understanding the specific category of the dispute can simplify the CIBIL dispute resolution process. 
Here are some of the primary types of disputes that you can encounter in your CIBIL report:

• Individual Disputes

Individual disputes can occur when an individual finds an error in the information within their credit report. This happens when there are mistakes, errors, or wrong details in the person's credit history, personal information, accounts, payments, or any other important data. Individual disputes can also arise in the case of a duplicate account.

• Company Disputes

As the name suggests, company disputes refer to the CIBIL disputes a business, or a company has regarding the information in its commercial credit report. This type of dispute may arise due to incorrect ownership details, duplicate accounts, or data inaccuracies.

 Also Read: 8 Tips to Improve CIBIL Score After Loan Settlement...!

How to Raise a CIBIL Dispute?

Here are the steps to raise a CIBIL dispute online:

• Step 1: To raise a dispute in the CIBIL report, you are required to access the CIBIL portal using your login credentials. If you do not have an existing account, you will need to create one to initiate a dispute with CIBIL.
• Step 2: Log in to your CIBIL account on the official website. Once logged in, navigate to the ‘Credit Report’ tab, and choose the ‘Dispute Centre’ option. From there, click on ‘Dispute an item’ to initiate a dispute for any specific items in your credit report.
• Step 3: After this, an online dispute form will appear on the screen. 
• Step 4: Under the ‘Identification #’ option, select the specific documents that need to be rectified.
• Step 5: Proceed to rectify the identified documents, ensuring that the necessary corrections or updates are made accurately.
• Step 6: Once the documents are rectified, submit the completed dispute form.

If multiple documents require rectification, click the ‘+’ button to add additional entries before submitting the form. This allows for the inclusion of all relevant documents that need to be addressed in the dispute resolution process.

CIBIL Dispute Resolution Process

After completing the online process, the errors in your credit report will be investigated and the disputed fields will be marked as ‘under dispute.’ CIBIL will contact your lenders and correct the discrepancies accordingly. To keep you informed, CIBIL will send you email updates concerning your CIBIL dispute status every seven days. Once your report is corrected, the company will send you an SMS. In general, the total time for this process may take up to 30 days.

Tips for Avoiding CIBIL Disputes

• Pay Your Bills on Time: Late payments can hurt your credit score. Make sure to pay your bills on time to avoid any issues.
• Check Your Credit Report Regularly: It's important to stay on top of your credit report and check it regularly. This will help you identify any errors or discrepancies and take corrective action before it becomes a bigger issue.
• Keep Your Credit Utilisation Low: High credit utilization can indicate a higher risk of default and can negatively impact your credit score. Try to keep your credit utilisation low and use credit only when necessary.

By following these tips, you can avoid CIBIL disputes and maintain a healthy credit score.

Conclusion

To sum up, understanding the CIBIL dispute resolution process is key for addressing credit report inaccuracies. By following the above-mentioned steps, providing evidence, and regularly checking your credit report, you can increase the likelihood of a successful outcome. With the right knowledge and proactive approach, you can navigate the CIBIL dispute resolution process effectively and work towards improving your creditworthiness.

Frequently Asked Questions About CIBIL Dispute

• How much time will it take to resolve a CIBIL dispute?

The time required for CIBIL dispute resolution varies. Typically, CIBIL aims to address disputes within approximately 30 days, but the time taken is subject to how quickly the lending institution responds to the dispute.

• What information can be disputed under CIBIL?

You can raise a CIBIL dispute for various types of information, such as personal details, account information, payment history, credit inquiries, and public records. It is important to note that the specific information under dispute may vary depending on your credit report and the nature of the discrepancies or inaccuracies identified.

• What is the success rate of a credit dispute?

The success rate of a credit dispute can be different for each case as it depends on factors like the type of dispute, the evidence you provide, and the accuracy of the information in question. It can be a bit difficult to give an exact success rate because every situation is unique. However, if you have convincing evidence and a clear case, your chances of a successful outcome are higher. Make sure to gather accurate supporting documents and present your case on time.

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
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