Let’s assume a scenario where you go to a lending institution to take a loan. The loan is rejected. You wonder why your loan is denied, as you know you have been a good borrower. One possible reason is there could be a problem with your CIBIL score. You look at your credit report from CIBIL and are surprised that there are some errors.
Should you panic in such a situation? No. You can raise a CIBIL dispute and get it corrected. How can you raise a CIBIL dispute? What are the errors in a CIBIL report? What is the role of CIBIL and the significance of credit score? Let’s answer these questions.
CIBIL and CIBIL score
CIBIL (Credit Information Bureau (India) Limited) is the apex credit bureau of India. It collects and evaluates the credit history of customers. These customers can be individuals or companies.
CIBIL assigns a credit score. A credit score is a three-digit number that determines your creditworthiness. The credit score is given in the credit report. The credit report also gives other details, such as your credit history.
In some cases, wrong information is sent by financial institutions. Sometimes, wrong information is advertently updated by the credit bureau. These errors will be seen in the credit report in both cases.
You can fix the error when you identify incorrect information in your CIBIL report. There can be different kinds of errors in a CIBIL report. For instance, there can be an error in bank-related information, loan repayment status, PAN card details, etc. The process by which you identify and fix errors in the CIBIL report is known as a CIBIL dispute.
Types of Loan Disputes
There can be two types of disputes –
Individual disputes – Disputes relating to individuals who take loans or credit cards
Company disputes – Company disputes are concerned with companies
Steps to Resolve a Dispute for Individuals
To resolve any type of dispute user can follow these steps –
- Go to the CIBIL website and register on it.
- Login to the website and retrieve your credit report.
- Click on ‘Credit Report’. Select ‘Dispute Center’. Then select ‘Dispute an Item’.
- Choose the section of the CIBIL report for which you want to raise the dispute and submit it online.
- Disputed fields are marked as ‘Under Dispute’. You will get a confirmation receipt from CIBIL. It will be sent to you by e-mail and SMS.
- Relax and wait for CIBIL to resolve the dispute. Typically, it takes 30 days to resolve the dispute.
CIBIL Company Credit Information Report (CCR)
CIBIL Company Credit Information Report (CCR) consists of credit information relating to companies. If there are any discrepancies in this information, you need to rectify them. There are different types of disputes:
- Company/Account details – Company details include name, address, etc. Account details include loan sanction date, loan sanction amount, credit type, etc.
- Duplicate Account – A duplicate account implies the same account is reflected more than once.
- Ownership – Ownership implies a particular account does not belong to you. Alternatively, there are inaccuracies in the entire report.
The authorized signatory of the concerned company must raise the dispute. To raise a dispute for discrepancies in CCR, submit an online Dispute Form. You can also raise a dispute by writing at the registered CIBIL address.
1. How to raise the Cibil dispute offline?
You need to write to Transunion CIBIL at its authorized address. Currently, the authorized address is: TransUnion CIBIL Ltd., One World Centre, Tower 2A, 19th Floor, Senapati Bapat Marg, Lower Parel, Mumbai – 400013
While raising a dispute offline, you must mention essential details such as transaction ID, report order number, etc. However, online dispute resolution is much quicker and hassle-free.
You are not satisfied with the dispute resolution. What can you do?
You can raise a new request with CIBIL to resolve the dispute. Alternatively, you can write to CIBIL directly. While doing so, you will have to provide details of the previous dispute request.
Why is it important to fix errors in CIBIL reports through the dispute resolution mechanism?
A credit report has a significant impact while determining your loan eligibility. If there are certain errors in the CIBIL report, there is a possibility that your loan may be rejected. You might get a loan at higher interest rates in case of some errors. For instance, if there is a duplicate account in your credit report, it might affect your score. You might get access to better credit opportunities if these inconsistencies are corrected.
You have raised a dispute. How can you check the disputed status?
You can check the status by logging in to myCIBIL. After logging in, you can go to the ‘Dispute Status’ section to check it. You would have been assigned a unique dispute ID. You can use this dispute ID to check the CIBIL report’s dispute status. CIBIL sends an e-mail and SMS when the dispute is resolved.
Does CIBIL make changes to the credit report directly upon raising a dispute?
CIBIL approaches the lender and, after authorization, makes the changes. This process takes some time. The turnaround time is typically 30 days.
What is the control number in the CIBIL report?
A control number is a unique number that is renewed every time your credit report is generated. You can find the control number at the top of the credit report. You need to keep the control number handy while raising a CIBIL dispute.
Can a lender reject a dispute raised?
In some cases, the lender can reject the dispute. CIBIL will notify you of the same. Periodically review your credit report to find if there is any wrong information. Whenever you find any inaccuracy in the report, raise the dispute immediately. Though sometimes there are discrepancies in the credit report, the dispute resolution mechanism is robust. Trust the process and apply for the loan you need.