Credit Score and Dispute Resolution

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Know your rights: credit score and dispute resolution (representative image) | Photo credit: Pexels

Lenders use credit scores to assess an individual’s likelihood of repaying their loans in a timely manner.

What is the credit score?

The higher the score, the more a borrower turns to potential lenders. A credit score is a number between 300 and 900 that determines a consumer’s creditworthiness.

How is it calculated?

A credit score is based on credit history – number of loans and credit cards, total level of debt, repayment history, balance between secured and unsecured loans, use of credit and the number of credit applications received.

Credit Rating Agencies In India, there are four credit rating agencies licensed by the Reserve Bank of India. These are CIBIL (Credit Information Bureau India Ltd), Experian, Equifax and Highmark. The most widely used credit score in India is the CIBIL score.

What is a good credit score?

The better the CIBIL score, the higher the chances of the loan being approved. Other benefits of a good credit rating are lower interest rates, better repayment terms, and a faster loan approval process. A good CIBIL score can be considered greater than or equal to 750.

How to maintain and improve the CIBIL score?

It is important to make timely loan EMI payments and pay bills on the due dates. Full use of credit limits should be avoided. Also, applying for many credit cards or loans should be avoided.

How to check your CIBIL score for free

  • Visit the CIBIL website (www.cibil.com) and click on ‘get free CIBIL score & report’

  • Enter the personal information needed to create your CIBIL account

  • Continue to verify your identity and verify your CIBIL score

  • Click on the “get your free report” link on your “my account” page

  • Find your CIBIL report in the ‘accounts’ and ‘surveys’ sections and download it

The CIBIL score can only be viewed free of charge once a year on the website.

Benefits of checking personal CIBIL score

Checking the personal CIBIL score provides an understanding of credit health and helps plan monthly expenses. It provides useful information to ensure that the credit profile is in good standing.

In the event of discrepancies/errors in the credit score and report, a dispute may be raised with the credit rating agency and rectified.

How to Raise a Dispute and Get Your Credit Rating Corrected

  • Go to the site, click on ‘my CIBIL’ and log in

  • After logging in, click on “Credit Reports” and select “Dispute Resolution Center”.

  • Select “dispute an item”

  • Complete the dispute form with your details and click ‘submit’

Choose the section of your CIBIL report for which you wish to raise the dispute and enter the relevant details. CIBIL will verify the disputed information and forward these details to the lender depending on the type of dispute.

If the lender accepts this dispute, corrections will be made by CIBIL and the updated details will be reflected on the next credit report.

Contact Details for Raising a Dispute CIBIL Offline TransUnion CIBIL Limited, One Indiabulls Centre, Tower 2A, 19th Floor, Senapati Bapat Marg, Elphinstone Road, Mumbai – 400 013

The writer is a social activist based in Vile Parle

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