How to fix errors in your Cibil credit report?

Your Cibil credit report is an important document that comes to your aid for everything from availing of a loan to a credit card application and will sometimes even be referred to by a prospective employer. A discrepancy in your Cibil report thus will not only cause your loan application to be rejected, but may also cost you the possibilities of getting a better job. However, if you find that there are errors in your Cibil report, the good news is that you can go about with dispute resolution to get an error free report.

The nature of errors can be something mundane as mistakes in the spelling your name, age, address or PAN card. These errors may not necessarily ruin your Cibil score, but need to be corrected nevertheless. The really damaging errors in your report may arise from a mistaken identity when you find there are someone else's loan details in your report or an overdue amount that is on a loan you have not taken! Such an error can bring down your Cibil score drastically for no fault of yours. If you find such an error exists in your Cibil report, here's what you need to do to rectify it.

The first step

The first step is obviously obtaining a copy of your credit report. More often than, not such errors happen because people undermine the importance of obtaining their credit reports till they hit a roadblock in their loan application process. If you find that there is an error in your report you will need to "initiate" a dispute by submitting a dispute resolution form.Once Cibil receives this form, it takes approximately 30 days to resolve a dispute. This is however subject to the time taken by the credit institution (bank or NBFC or card issuer) to send the required information to Cibil.

For lender related disputes

If you find that the lender has supplied incorrect data to Cibil with regards to your loan details (eg: an overdue amount that you may have cleared is still showing on your report, or a loan is being shown as active even after its closure) you can contact your bank and report this discrepancy. Your bank will then contact Cibil and give the correct information regarding your loan account, after which the information will be updated on your Cibilreport.  Once you get a confirmation from your bank about the rectification of this information in their records, it takes 45 days for this rectified information to show up on your Cibil report.

In case of a mistaken identity

If you find that your report is showing the details of a loan or a credit card that you have not availed of, you will have to raise a dispute regarding the same using the online dispute redressal mechanism of Cibil. Once Cibil receives your application, it will take up the issue with the concerned lender and if it reverts saying that your complaint is a valid one, it will make the necessary changes and submit the rectified information to Cibil. On the basis of this new information that it receives, Cibil will rectify your credit report within 30 working days.

Problems that can arise

If the errors in your report are regarding your own loan or credit card account, the redressal mechanism is easy, but in case of mistaken identities where the bank may have submitted the information of someone else's loan account under your name, the difficulties are much more. The bank in such cases will need to get in touch with the person with whom your identity has been confused and follow up with him. However, since banks mostly outsource their collection process to third parties, there may be some lack in documents or adequate proof. In such cases, the dispute resolution mechanism can go up to more than 60 days.

If the redressal is not satisfactory

If you are not satisfied with the dispute resolution process of the credit bureau, you may approach the bureau directly again, this time making a specific request about what you want. More often than not Cibil will have resolved your dispute in the first shot, even if it does take a little longer if the process in a complicated one.

Your Cibil report  is your passport for a smooth loan application process and is increasingly assuming importance in other spheres of life as well. The prudent thing to do therefore is not to wait till you apply for a loan to take a look at your credit information. Obtain your Cibil report at least once a year to ensure that it is free of errors, or in case there are discrepancies, there is enough time to correct them.

To avoid the complicated prodecure of dispute resolution just book an appointment at www.cibilconsultants.com and get end to end solution for rectification of errors.

ATM Thefts

It's any time money not just for depositors but also for thieves.

If India puts not just a man on the moon but also the first ATM, the next day's headlines could announce that the money withdrawn by the country's first lunar bank customer was swiped seconds later by an anonymous compatriot who had managed to get there on his own steam.

ATM thefts are one area where India is not lagging behind the developed world. It's not just in Japan that there are reports of the yakuza (gangsters) using trucks with sophisticated construction equipment to uproot ATMs. India's Silicon Valley of Bangalore has also witnessed amateurish attempts to carry away ATMs, lock, stock and barrel.

And so what if, according to some media reports, India holds the record for the world's highest installed ATM some 4,000 metres above sea level and around the Nathu La Pass in Sikkim. There are also reports that the Agricultural Bank of China has installed the world's highest ATM at around 4,500 m in Tibet. There are no reports however of the highest ATM theft. Whether the record is jointly held by Chindia is not known.

ATMs are hitting the headlines for all the wrong reasons. It is not just the customer who no longer has to go to the bank to withdraw money but can swipe a smart card (with an embedded chip containing a unique number) at an ATM. Likewise, instead of holding up a bank like the gangster John Dillinger used to do in the days of the Great Depression in America, the 21st-century thief can source his daily requirements by swiping someone else's money at the nearest friendly neighborhood ATM which is open 24x7.

The ATM has not just enabled the individual customer to have transactions with his own account without accessing the bank's entire database. It has also decentralized bank thefts since the individual thief can operate at a micro level and swipe someone else's hard-earned money by circumventing the customer-identity integrity systems by attaching fake keypads or card-readers on ATMs, to record confidential data like the depositor's PIN. Technological devices have been developed to detect foreign objects on ATMs.

Learn about identity theft at www.cibilconsultants.com

Source: Secondary

Information your Cibil report contains !

In India, very few people know about CIBIL. CIBIL maintains all the data regarding any credit taken by any individual in his entire life cycle. It provides a report known as credit report which contains all the detail regarding all the accounts taken by the individual. This report is very important because it shows our past, future and present of credit history.

All banks refer to credit score of every loan applicant as part of due diligence process. It is an important step in loan due diligence process as it gives a fair idea of the credit-worthiness of every individual. In very simple terms - CIBIL Score determines the probability of a default of a customer. A high CIBIL credit score demonstrates financial discipline and a lower likelihood of default.

Credit Information Report (CIR) contains the basic information about your credit history and any other financial related information that is available from CIBIL.

Personal information: Your name and details of ID proofs are shown here. Your PAN, Passport, Drivers License, Voter ID etc. appear in this section.

Contact information: Your recent address, phone number and email address given by you to the banks and lenders will be shown here. The address category tells whether it is permanent or temporary and official or residential.

Employment information: This section shows your occupation and income. The most recent information as provided by the lender for a particular credit account will be shown here.

Account information: This is the most important section of the report, which shows the details of your existing loans and other credit facilities. Along with this, the details such as name of the lender, types of credit facility, account number, account type and type of the ownership will be given here.

Get your credit report easily by visiting www.cibilconsultants.com

Source: Secondary

Make your business creditworthy !

Is your business credit worthy is one of the main things asked when you apply for a loan or credit card. Here are some ways to make your business credit worthy-

Make yourself personally creditworthy:
Your personal credit score pays a big role in building your business creditworthiness. If it is low, you should focus on repairing it. Pay off all your dues on time i.e. any past amounts which are due and/or also those in process of collection. Pay down any revolving balances on your credit cards and in future try to avoid carrying such debts. If that is not possible for you, then make sure you pay more than the minimum amount which is due and also make these payments on time.

Establish a separate business identity:
As and when your business starts getting settled and well established and you are looking for specific credit score for your business, then set up a separate business entity from your personal affairs. Get advice from your legal advisor or attorney on which would be the best possible legal structure for your business. Register for a federal tax ID or an EIN (employee identification no) in your state. Then lastly, establish a business banking relationship to segregate your business from your personal finances.

Establish separate credit record for business:
After you've set up a separate business identity for your business and been there for a while, you would like a separate credit record different from your personal credit record, for your business too and for this you need to apply for a separate credit card for your business.

Keep up with your business credit reports:
Most businessmen say they don’t get time to check their business credit reports when in reality they are just afraid to check them. You should not be afraid because the faster you would check the reports, the sooner you’ll be able repair them or fix any discrepancies you find. The credit reports should be checked at least annually to make sure there are no mistakes; if you have a frequently changing business situation then check them quarterly. Get your most recent credit report when applying for a loan.

Keep checking up with the credit rating:
Keep checking up with the credit rating about your reports. If you find any inaccuracies or error in your business credit reports, report to the credit bureau directly and challenge them.These bureau are supposed to contact the lenders with the incorrect information; the creditor would then, either contact the credit bureau and correct the information or would respond to you, explaining their reasons on why they do not agree with you on issue of the disputed payment.

When you settle this issue, your credit score is most likely to go up. However, keep checking it till it does.
Now that your credit score has improved it would also improve your credit worthiness. This credit line can be a safety net for your business, as it makes sure that you have required cash for your day to day business activities and for handling an emergency.

For any assistance regarding credit scores and report book an appointment now only at www.cibilconsultants.com

Source: Secondary