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 How wrong information in your cibil report could affect you

How wrong information in your cibil report could affect you

Your credit information report is probably not the deciding factor when you apply for a loan, however it is indeed an influencing one. Making sure the details in the report are correct will not only save you embarrassment in the eyes of the bank, but will also save up a lot of time and energy on your part.

It is not uncommon for the credit bureau to wrongly map information to your account considering the vastness of their accumulated database! Every time, we apply for a loan or a credit card from a bank, it is reported to cibil. The information corresponding to your credit activity is updated in cibil periodically, based on the information reported by the banks. However, there is always room for error wherein, somebody else’s account information or credit transaction may get wrongly mapped to your account.

How does it affect me if my cibil report is wrong?

Well for starters, your personal loan/ card application may be rejected.

Then, comes the trouble of continuously following up with banks as well as cibil to get your record straightened. Looking for the steps to resolve these cibil disputes? You might want to read a detailed post on how to resolve cibil disputes.

The following types of information could be mistakenly updated at any point of time:

- Name /Date of Birth /Gender

- Passport Number / Voter’s id

- Phone numbers

- State, PIN

- Account/Loan type/Status

- Ownership Type

- Date of Last payment/ opened date/ closed date

- Sanctioned Amount

- Current Balance/ Amount Overdue

- DPD/Asset Classification

Also, when you happen to have only a add-on card or if you are a co-applicant or a guarantor for someone,  there are chances your account information may reflect in such a way that you are the main applicant or so.

Most often, there is a mismatch in the name or date of birth. That is, if a defaulter’s record is wrongly mapped to you(when you haven’t done any wrong), and you happen to apply for a loan, banks will receive a risk alert stating that you are a defaulter.

Obviously, your loan is going to be rejected. However, that shouldn’t stop you from finding out the reason for rejection from the bank. And when you do, you can easily find out what went wrong and if it is because of your erroneous credit report, then it is the time when you should place a dispute request with cibil’s site and rectify it immediately.

Another important tip to keep in mind, would be to check your cibil report regularly (at least once a year) so that there is no need of hassles while actually applying for a loan or a card.

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Priya Rai is a loan consultant.