Discrepancy in CIBIL score: How to rectify it to improve credit score?

As soon as you identify a discrepancy, fill the dispute form available on the CIBIL website. CIBIL score discrepancies can be resolved in less than two months, however, it can take longer if the lender disagrees with your claim and you need to appeal with CIBIL again.

Higher the CIBIL score better the credit history of a person.

If you have been borrowing loans or opting for other credit facilities then you should be familiar with the term "CIBIL score" by now. It plays a vital role in ascertaining whether you'll be eligible for credit facilities in the future or not. However, the credit score provided by the Credit Information Bureau (India) Limited (CIBIL) might not always be accurate due to errors or discrepancies and this could cost you significantly.

It’s important to know the factors that impact your CIBIL score and how to remove the discrepancies to improve your credit score.

What does CIBIL score mean?

CIBIL score basically refers to a summary of one's credit history that is expressed in numeric terms. CIBIL Score is a three digit number that ranges between 0 and 900. Higher the score better the credit history of a person.

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The score is based on the credit history documented in the CIBIL Report, also known as Credit Information Report (CIR). The report contains all the information related to an individual’s availed credit facilities and the repayments. Maintaining a good CIBIL score, which ranges between 700 and 749 or above, ensures higher chances of getting a quick approval for future loans. It's even better if you have an excellent credit score, which ranges between 750 and 900.

How to rectify a discrepancy in CIBIL score?

Identifying a discrepancy in your CIBIL score could be a little tricky. As soon as you identify a discrepancy, fill the dispute form available on the CIBIL website. In this step, you'll be asked to provide the necessary details and will be asked to explain the discrepancy clearly. You can choose to attach supporting documents that help in proving your point. Moreover, don't forget to keep a copy of this form for future reference.

After the dispute is filed, CIBIL will take action and investigate the matter with the concerned lender. Thereafter, the lender gets 30 days to respond to the dispute. If the bank or credit institution agrees that they had made an error, CIBIL rectifies the discrepancies in its own records. Therefore, if the dispute gets resolved in your favour, the required changes are made in your credit report and you'll receive the revised report.

On the other hand, if the lender disagrees with your dispute claim, the details present in the credit report and your credit score will remain unchanged. In this case, you can contact the bank or credit institution and provide them with the documents of your timely repayments. This can help them tackle the situation better and the dispute could be resolved in your favour.

However, if you're not content with the dispute resolution or in case you don't get to hear from the lender within 30 days, you can follow-up and contact CIBIL to expedite the process. Also, don't forget that the CIBIL score won't change overnight as it'll take some time for CIBIL to update its records once the discrepancy is identified, therefore, better to remain patient.

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