You have no connection with CIBIL authorities
CIBIL has no connection with banking and other financial institutions
Once any loan is provided, it is the responsibility of the bank to provide the details of such loan accounts to the CIBIL authorities within the stipulated time.
As such once the loan is sanctioned to you, within a couple of days, the entire information will be available with CIBIL also apart from your bank.
As and when the transactions are recorded in the loan ledgers, they are in turn conveyed to CIBIL
For such transmission, separate softwares are utilised and the confirmation for having submitted the details of transactions in loan accounts has to be sent to the head office of the bank and to RBI
As such the details of every loan account will be available in CIBIL
Even after the closure of your loan account, the details will find a place in the loan porffolio.
Anybody who is willing to know your CIBIL score can get the details by payment of requisite fees to CIBIL and they will be able to find out the track records
- Promptness in payment of loan instalments and interest
- Delay in remittance of such instalments and interest
- Overdues in loan accounts
The CIBIL software provide a combined score basing upon several positive factors and the bankers and other financial institutions are bound to value such score before granting any loans to any individuals and others
However, such system is not applicable to the following accounts:
- Loans granted against fixed deposits with the bank
- Loans granted against the security of gold jewellery
Common Mistakes in CIBIL Report
Some of the common mistakes in the credit reports are:
- Incorrect remarks in CIBIL report by lender
- Mistake in name, gender, date of birth or address while reporting by CIBIL
- Mistakes during generating CIBIL reports
- Fraudulent activities using the documents of another person and hence causing wrong entries
How to Remove Late Payments from Your CIBIL Report?
Late payments can affect your CIBIl Score a lot and can lead to a lower CIBIL score which can affect your future creditworthiness. This happens because all the banks and NBFCS send the repayment history of their borrowers to the credit unions like CIBIL, Equifax, and Experian.
So, if you want a good CIBIL score it is very important to remove the late payments from your CIBIL report.
Your late payments will definitely be of past and it is possible that till now you have gained stable finances. So, in order to improve your credit score, you can go with a small loan. Take a personal loan of a minimum amount. When you go for a new loan, your history will be created again and when you will be timely with its payment it will create a good CIBIL score for you. Go for a pre-closer option and pre-close the loan when you want.
As a result, your score will improve in a short time without much effort