5 Easy Tips to Get Off from CIBIL Defaulter’s List While Availing a Personal Loan

Last Updated : July 21, 2016, 12:18 p.m.

In order to avail the personal loan, the first and foremost thing that you need to do is to keep a track of your credit score. Yes, in the present scenario, it is really important to maintain a good CIBIL as it helps you in getting the loan easily. However, this concept this new in India, but it is a common yardstick which is used worldwide in order to access the credit worthiness of an individual while applying not only for loan, in fact for telecom services, insurance or even while screening the employees prospective.

Moreover, the credit bureau in India i.e. CIBIL basically maintains a list of defaulters which it gathers from its member organizations such as banks and NBFCs. And, if they find a default being mentioned in the credit report, it would not be wrong to say that it can actually lower your score drastically, and in fact can affect your chances of getting the approval for personal loan so easily. So, the only way out here is to remove the default mention in your CIBIL score, if you are a defaulter.

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However, this may sound like an overwhelming task, but in reality, it is not the same as it is easy to get the default removed from your report. So, don’t worry! Follow these five easy steps mentioned below to get off from the defaulter’s list:

Step 1: Look for errors

Try to keep a track of your CIBIL score as it is not a difficult task. In fact, you can get your credit report free once in every year, but later on you will have to pay for it. Look at your report carefully and try to evaluate it thoroughly. Look for some details such as gender, name, passport number, PAN, address etc, have entered with errors. Although some of these do not matter, but these may also include some errors in accounts, credit card information, identity theft and last, but not the least wrong default payment reports. Moreover, the errors, if found will actually give you one solid proof of raising a dispute with CIBIL which is actually a direct way to remove the default from your list.

Step 2: Find the financial institution or bank

Well, in case if step 1 is not helpful, you can use the step 2. You need to identity which NBFC or bank actually provided the default information to the CIBIL. Since CIBIL is nothing but just a regulatory authority. So, with the help of knowing this, it will help you with the fast removal of the default.

After you get a letter of acknowledge from the concerned institution, it proves that the default is erroneous, and it will be easier to remove the default entry. You can also write to the bank as well s CIBIL regarding the faulty entry, if a bank or NBFC is denying to help or cooperating with you.

Step 3: Settlement

If you are the one who has defaulted officially, and the entry on the default is correct, its better for you to consider settling down the things with the bank or NBFC which had sent your report to CIBIL. In such a scenario, you need to make the settlement letters and ensure that the default entry is removed failing which the default will automatically affect your financial prospects.

Step 4: Pay dues on time

When it comes to ensuring the removal of the default entry, it is important for you to pay off all the dues you own and make sure that all your future payments are made on time. So, you need to understand that whenever you are delaying a payment, it will affect your score very badly. Thus, to avoid this situation, all you need to do is set up payment alerts in your mobile or have auto debit feature in your bank account. With the help of doing so, you will be able to ensure the regular payment.

Step 5: Spend wisely

When it comes to spending with your credit card, you need to make sure that it should be within your approved limit. It you overspend regularly on your limit, it will automatically alert the lenders, and ultimately indicate that you have insolvency issues with you.

In a nutshell, it would not be wrong to say that you need to ensure that the default issue does not occur in the first place as it is a positive step that will give you the assurance that your score is good always. Try to avoid using too many credit cards, budget wisely and keep control on your expenses in order to get off from the defaulter’s list permanently.