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Get Off The CIBIL Defaulter’s List in 5 Steps

5 Steps To Remove Your Name From The CIBIL Defaulter's List
Viveka Rao
Written by Viveka Rao

Get off The CIBIL Defaulter’s List Now

Get your finances in order before the next list update Improving India's Credit EverydayTo keep your personal finances or credit health in order, you should keep track of your credit score. In the present scenario, credit score is very important especially for your financial life. Although it is new in India, it is a common yardstick used worldwide to assess the credit worthiness of an individual, while applying for loans, telecom services, and insurance or even while screening prospective employees.
The credit bureau in India, CIBIL maintains a list of defaulters, which it gets from its member organizations such as banks and various other financial companies. If you find a default mention in the credit report, it can lower your score drastically, and affect your chances of easy loan approval. So the only way is to remove the default mention in your CIBIL score.

While this may seem an overwhelming task, it is actually easy to get the default removed from your report. Here are five practical and easy steps to accomplish this.

Follow These 5 Easy Steps

Step 1: Look for errors
Get your CIBIL score and credit report. This is easy. You can get it free once every year, but later on you will have to pay for the report. Look at the report carefully. It is possible that the report is not accurate. Details such as gender, name, passport numbers, PAN and address may be entered with errors. Although some of these do not matter, these indicate that there could be errors in relation to the default payments too. These may include errors in accounts, credit card information, identity theft and wrong default payment reports.

The errors, if found will give you solid proof for raising a dispute with CIBIL. This is a direct and simple way to remove the default from your list.

Step 2: Find the financial institution or bank
If step 1 is not helpful, you can use this step. You should identify, which financial institution or bank gave the default information to CIBIL. Since CIBIL is just a regulatory authority knowing this will help in fast removal of the default mention.

When you have a letter of acknowledgement from the concerned institution that proves the default is erroneous. it will be easier to remove the default entry. You can write to the bank and CIBIL regarding the faulty entry, if the financial institution or bank is refusing to cooperate with you.

Step 3: Settlement
If you have defaulted officially and the entry on the default is correct, you should consider settling things with the financial institution or bank which had sent the report to CIBIL, and also update CIBIL on the actions you have taken. You have to make settlement letters and ensure the default entry is removed failing which, the default will affect your financial prospects for seven years.

Step 4: Pay dues on time
To ensure the default entry is removed, you have to pay off the amount you owe and ensure that all future payments are made on time. Whenever you are delaying a payment, it will affect the score badly. If you are unable to pay on time, set up payment alerts in your mobile or have auto debit feature in your bank account, so you can ensure regular payment.

Step 5: Spend wisely
Whenever you spend on your credit card, make sure it is within the approved limit. If you regularly overspend on your limit, it will alert lenders and indicate that you have insolvency issues.
In conclusion, ensuring that the default issue does not occur in the first place is a positive step towards ensuring your score is good always. Avoid using multiple credit cards, budget wisely and keep control of the expenses to be permanently off the defaulter’s list.

About the author

Viveka Rao

Viveka Rao

Viveka Rao is post grad in finance and a freelance writer here at CreditSmart. A love for shopping and travel rewards has fueled her interest in personal credit, and making the most of rewards programs. She writes to educate other consumers in making great financial choices.

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