How To Remove Your Name From The CIBIL Defaulter List?
Is it possible to get your name removed from CIBIL defaulter's list? Yes, it is. Get to know the complete process & how to avoid from getting listed in CIBIL defaulter list!
A CIBIL score is vital to availing any credit products. Whether a loan or a credit card, you must have a strong CIBIL score to prove your creditworthiness. A CIBIL score is a three-digit credit summary that reflects your credit history. However, failure to repay loans on time can put you on the defaulter’s list, reduce your credit score, and cause you inconvenience in applying for further credit.This article explains how to remove your name from the CIBIL defaulter list.
What Is A CIBIL Defaulter’s List?
It is noteworthy that CIBIL, one of the credit bureaus of India does not maintain a default list. Instead, the Reserve Bank of India maintains a list of debtors which is published on their official website. The Reserve Bank of India introduces new frameworks from time to time to establish a rigorous and fair financial system in the country.Depending on the circumstances that lead to the defaults, the RBI divides the list of defaults into two groups: intentional and unintentional debtors. It is designed to identify those who face challenges with debt and those who have consciously chosen not to pay it back. CIBIL will consider you in default if your name appears on this list due to repayment failure.
How To Remove Your Name From The CIBIL Defaulter’s List?It is advisable to avoid allowing your name to appear on the CIBIL defaulter’s list. However, if you happen to find yourself in the list for some reason, you can remove your name from the CIBIL list in the following ways.
• Check Your Credit Report:Checking your credit report carefully will help you understand any discrepancies and ensure that the information in your report is correct.
• Clear Outstanding Dues:The best way to improve your credit score is to pay all outstanding dues on time. Reach out to your creditors and show them an exit. After you’ve cleared the entire outstanding amount, wait three months and then check your credit report again to see if it has been renewed.
• Do Not Exceed Your Credit Limit:Do not exceed 30% of your credit limit. This will keep your credit score healthy at all times.
• Do Not Apply For Multiple Loans Simultaneously:Applying for multiple loans and credit cards in a short period means you are credit-starved. Lenders doubt your repayment ability and may reject your loan application. Each rejection further lowers your credit score. Therefore, you should only apply for one loan or credit card at a time. This makes payments easier and increases the chances of your loan application being approved.
How To Avoid Getting Listed As A CIBIL Defaulter?A few tips to avoid being listed on a CIBIL defaulter’s list include the following.
• Make timely repayments of all your dues. Setting reminders of your upcoming EMI dates can help you make payments on time.
• Avoid having multiple credits and credit cards, as lenders may perceive you to be in a perpetual debt cycle with too many credits simultaneously. It may also pose eyes on your ability to repay the loan.
• Check if the credit reports present accurate information about your credit history. You must also check your credit report (CIR) to review prepayments/credits that may have defaulted. From there, you can take steps to rectify the situation so that you can remove your name from the list of defaulters.
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Frequently Asked Questions
Q.1: For how many years does CIBIL track defaulters?
Ans: CIBIL records seven years of your financial history from the day of your last report date.
Q.2: How can you improve your CIBIL score if you have defaulted on a loan?
Ans: A few techniques to improve your CIBIL score includes
• Timely repayment
• Verifying the information on the credit report
• Avoiding multiple credits simultaneously