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CIBIL Defaulter list

To begin with, let us understand that there is no separate defaulters list with the banks or credit bodies. Rather, credit companies maintain data pertaining to your repayment performance on credit of all sorts. This data is expansive and includes timely payments as well as defaulted payments of the borrower’s. Any individual who has ever been on the credit line gets a report automated in the credit bureau together with information on the repayment timings. When repayments are late or not made at all, it has a negative impact on your credit score.

Loan Process for CIBIL Defaulter

You can get a loan application approved despite bad CIBIL scores. This can work as an alternative to help you get personal loan irrespective of your CIBIL score.

  • Salary: It will help you get your loan application approved, no matter whatever your CIBIL score is, if your salary is good.

  • Spouse’s CIBIL Score: If your CIBIL score is poor and your spouse has got a good score, then you can get your loan application approved.

  • Credit Bodies for Low CIBIL Score Holders: Some bodies cater with loans to individuals who have bad CIBIL scores. They ask for higher interest rates on the repayment.

  • Peer to Peer Lending: This type of practice is finding foothold in India gradually. It involves high interest rates and a small loan amount though.

How to know if your name is in CIBIL defaulter list?

There is no CIBIL defaulter list as such. No credit rating agency or CIBIL issues a defaulter list. Hence, whenever you apply for credit of any kind, the credit body will ask for your score from the credit bureau. If you have a poor credit score, you will not get credit due to a bad repayment record.

How to remove your name from CIBIL defaulter list?

  • Examination of Your Credit Report Make a careful examination of your credit history, this will help you understand your mistakes and will also ensure that your details in the report are flawless and correct.

  • Clear Off Your Dues The best way to improve your credit report, is to clear off your all outstanding credit. In case you have any financial limitation, you should speak with your lenders in advance and make a way out. Once your bills are cleared, wait for 3 months and again check your credit report.

  • Pay in Time A delay in the payment of the loan or credit card instalment has negative impact on your credit history. If you desire an improvement of your credit score or if you want to keep the good score good, you should start paying your monthly instalment before the due date.

  • Spend as Per Your Credit Limit Try to spend no more than 30% of your credit limit. This one move will always keep your credit score healthy.

  • Take Loans One at a Time If you apply for multiple loans in the same go, you will only show your credit hunger. Applying for short duration loans is not a good idea either. Therefore, you should apply only for one loan at a time. This makes for easy payments and higher possibility of getting the loan approved.

What to do if your name is still in CIBIL defaulter list?

  1. Check your credit report - There could be an error causing your name to be defaulted. Always check on the report and make sure all your details are properly mentioned, like Date of Birth, Name, PAN number, Address, etc.

  2. Another frequent reason why names pop-up in default, is late and incomplete payments on monthly EMIs

FAQs on CIBIL defaulter list

How to improve your score and not get on the Defaulters List?

A good repayment track record: It does not need be said, a good CIBIL score starts with a timely repayment of credit. Irrespective of whether you are an individual or a Company or business, the credit rating can be improved by timely repayments.

Maintain a low credit utilisation ratio: A better rate of credit utilisation indicates that the an individual / company is not credit hungry, and this will improve your credit rating.

Length of Credit: Companies that have a more established track record of repaying credit have a better ranking than that of start-ups. These companies are thus likely to get a simpler, more effective access to credits. You can also improve your credit ranking, by being patient and bringing down the length of credit and by repaying credit diligently.

Pay Complete Bills on Credit Cards: You can either make a minimum or entire payment for credit card bill. Going with the second option will keep you off the credit default.

Displaying Credit Hunger: Continuously applying for loans will affect your CIBIL score. Only take a loan when you absolutely need credit.

What is credit repair?

Credit repair is undoing of mistakes and other inaccuracies on your credit report. These are not your fault and should ideally not affect you. However, since it is your credit record, having a bad remark on it will certainly be negative for your credit requirement.

For how many years does CIBIL keep track of defaulters?

The Credit Information Bureau of India Limited gathers and syncs all information to make a Credit Information Report containing an individual’s details of credit and defaults. This record stays with them for minimum 7 years from the date of first late report. Kindly note that CIBIL cannot delete or modify your records.

What to do if my loan is rejected due to my name in CIBIL defaulter list?

There is no CIBIL defaulter list as such. Nor does a credit rating agency or CIBIL issue a defaulter list. If your loan is getting rejected, it could be due to a poor CIBIL score, then you could start with clearing off all dues. Once the dues are cleared the default will be eliminated from the Credit Information Report. This is can take one month to maximum two months’ time.

If even after waiting out the due period, the record has not been updated, you will have to file a grievance with CIBIL. Beyond this, you can write to the RBI regarding your grievance.