Are You A CIBIL Defaulter? This Is How You Can Get Your Name Removed From The Defaulter's List
When you hear “CIBIL Defaulter's List”, what comes to your mind? Most home loan borrowers think that defaulter's list is maintained by the Credit Information Bureau of India Limited (CIBIL). But the reality is that the CIBIL does not maintain a defaulters list. The CIBIL only maintains the credit history of individuals as reported by banks and financial institutions.
The decision to grant a loan does not depend on what the CIBIL has to say. It is solely dependent on the credit policy of the lending institution.
So, what if your name is in the list of defaulters? How can you get it removed?
MakaaniQ tells you how you can get your name removed from the CIBIL defaulter's list.
If you are planning to take a home loan, make sure that your name never comes in the defaulter's list. Before you get your name off the list, you should understand why your name appears on the list. The reasons mentioned below could explain why your name is on the defaulter's list.
- Check the nature of error in your CIBIL report. There could be a human error that causes your name to be on the defaulter's list. The best way to check it is to ensure that all details are correctly mentioned in the report. For example, you need to cross check your PAN card details, name, address, date of birth etc. in your CIBIL report.
- There could also be an error in the reporting of details by your lender. Lending institutions have to submit large amounts of data about clients to the agency. The possibility of such an error is quite high. The chances of identity thefts are very high. This can lead to reporting of late repayment, despite making all payments on time.
- Last but not the least, settling of a credit or delay/ no payments could be another reason why your name is in the defaulter's list.
What can be done to not be on the defaulter's list?
- The information you need regarding the CIBIL defaulter's list is the Control Number (CN). Every time a bank or a financial institution asks for your CIBIL report, a CN will be generated. A CN is a nine-digit number that makes your credit report easily available and traceable.
- If you want to improve your credit score or remove your name off the list, you must find out your credit information report (CIR). This will enable you to check any advance/ credit` you may have defaulted on. From there, you can take steps to rectify the situation so that you can remove your name from the defaulter's list.
- One thing you can do immediately is to avoid having multiple credit cards. Too many credit cards will imply that you are highly in the need of credit, and that the chances of defaults are quite high.
- Avoid applying for credit cards and loans unnecessarily. Avoid pre-approval of loans too, if you have too many credits already running and you are not planning to take a home loan anytime soon. Greater the number of enquiries in your CIBIL report, more it will take you towards the lower bracket of CIBIL score.
- You must also check whether the outstanding loan amount and Days Past Dues (DPDs) reflecting in your CIBIL report reflect the true story.
- Last but not the least, make all payments related to your credit outstanding in punctually. Forget what you have done in the past and start making equated monthly instalments (EMIs) payments on time. This will definitely improve your credit score, even if it is not in a very good shape currently.