How do you correct your CIBIL score when getting an instant personal loan?

Your way to your goals often has a moment when emergency expenses accumulate, and you’ll have to raise cash soon. It may be that gadget, the medical emergency, or that dream vacation; instant personal loans are just a balm in times of sore need. However obtaining such a loan happens purely based on creditworthiness, wherein your CIBIL score plays a crucial role.

Errors in your CIBIL report may drop your score, thus disqualifying you from access to financial assistance. This comprehensive guide will help in spotting and correcting errors in the CIBIL report, so that you may have a fair chance of getting that instant personal loan at the right time. 

What is a CIBIL Score, and Why Does It Matter?

The three-digit number from 300 to 900 shows your creditworthiness, calculated from your credit report. This contains your borrowing history, repayments, and outstanding loans. The more significant the score is, the better your credit history, meaning the more chances you have of getting a loan, such as an instant personal loan.

But one mistake in your CIBIL report can spoil the game. It may lead to higher interest rates, lower loan amounts, or even outright rejections from lenders. So, an accurate CIBIL report is a must for smooth financial transactions.

Common Mistakes in CIBIL Reports

Many reasons may cause errors in your CIBIL report. However, the most common errors include clerical errors and some of the older information mentioned there. Look out for these most common problems:

  1. Wrong Personal Information

Your report might carry some incorrect information: it might take a misspelled name, the wrong PAN number, or the wrong address. Such minor flaws can trigger discrepancy that has the potential to damage your creditworthiness.

  1. Credit Utilization Details Incorrect

At times, your credit utilization ratio may seem more inflated than it is. It may occur when your creditors fail to update your repayment information with CIBIL. It may then give the impression that you are using more credits than you are.

  1. Incorrect Overdue Amounts

Overdue amount, also known as overpay balance due in loan or credit card: It means that if reported incorrectly while you are paying on time for loans and credits, then to the reader, it shows that you are delaying your loan and credit payments. Mistakes like this affect the credit score, and there is a delay in immediate approval for the instant personal loan.

  1. Duplicate entries of loans

Sometimes, the same loan account may appear in more than one CIBIL report. It is adding more active accounts, which is creating an illusion of higher debt on your credit. The more active accounts you have, the more harm is caused to your CIBIL score.

  1. Unrecognized Loan Accounts

Sometimes, you may experience loan accounts on your report which are not yours. These may be a result of clerical errors or identity theft. If left unchecked, they will cause a serious blow to your credit score.

  1. Miscalculation of Closed Loans

Even after you have closed a loan, it may still appear on your CIBIL report as active. Active loans are some of the primary determinants of your credit score; therefore, errors that are not corrected can keep your score artificially low.

How to Correct Errors in Your CIBIL Report?

You discovered errors in your CIBIL report. Here is how you can correct them and restore your score:

  1. CIBIL Report SCRUTINY

First, download your own CIBIL report and read it properly. Look into the wrong personal information, duplicate entries, or overdue balances.

  1. Online CIBIL Dispute

Step 3: Download the form for dispute redressal on the CIBIL website. Fill it in with your report’s 9-digit control number along with the entry you would like to correct, and also include supporting documents like a payment receipt or ID proof.

  1. Verification and approval by lenders

After raising your dispute, CIBIL will verify the issue and contact the lender responsible for the mismatch. Changes can only be made to your report after the lender confirms the mistake. To ensure a faster resolution, ensure all supporting documents are accurate and complete.

  1. Wait for Resolution

Generally, correction will take 30 days, and if the report has been cleared with correction, it is sent by mail. In case you still disagree with their conclusion, then a new complaint will be filed before further evidence has been submitted to CIBIL.

Correcting all these faults on time allows for a tremendous boost in CIBIL and significantly increases one’s chances of being granted instant personal loans.

Some Tips for a Healthy CIBIL Score

Correcting errors is but half the strategy. Maintaining good financial habits is equally important in keeping your CIBIL score high. Here’s how to do it:

  • EMI and Bill Payments: Making timely payments is crucial for maintaining a good credit score. It is always best to set reminders or automate your payments to avoid delays.
  • Credit Utilisation: Keep your credit utilization ratio under 30% to maintain a healthy score.
  • Avoid Multiple Loan Applications: Too many loan applications within a short period can lower your score.
  • Diversify Your Credit Portfolio: A mix of secured and unsecured loans reflects responsible borrowing.

These practices not only improve your CIBIL score but also ensure you’re in a strong position to apply for an instant personal loan whenever needed.

Why Does CIBIL Score Matter for Instant Personal Loans?

The best option for meeting urgent monetary needs would be an instant personal loan. Although it entails less paperwork and gives speedy disbursals, it still depends highly upon the individual’s CIBIL score by the lending bank.

A good score increases the opportunity of getting it approved and, in some cases, also helps you lower the interest. A low score may lead to rejection or unsatisfactory terms of the loan. Correct errors and maintain proper financial habits by ensuring that you have a very strong CIBIL score at all times, which will make sure you get a personal loan fast when you apply for it. With Stashfin, getting the money has never been easier. Get in control of your financial journey today!

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