What Is CIBIL Score?

CIBIL Score is a three-digit score of your credit history. The score is derived using your credit history generated in the CIBIL report. The report represents the individual’s financial identity across loan types and credit institutions over a period. It is generally considered that an individual with a high credit score can easily avail of a loan with lower interest on repayments. This makes it necessary for an individual to do a CIBIL score check occasionally.

Where Can I Get My CIBIL Score?

Many banks and non-banking financial companies can provide you a free CIBIL report checks to help better understand your eligibility on loan. A low CIBIL score can account you more interest rates. However, you can still apply for a loan by rebuilding your score, requiring time and patience.

How Long Does It Take To Repair Your CIBIL Score?

Repairing and rebuilding your CIBIL score can take months and involves a lot of patience. Many agencies claim to rebuild your CIBIL score in just a few months. But most of these agencies repair the CIBIL score in fraudulent ways, which may land you in several problems. Beware of it and never take any shortcuts. It is best that you differentiate between the right and wrong way of repairing the CIBIL score and avoid getting into such traps.

This article will discuss the three fraudulent ways of repairing CIBIL scores, which are to be avoided at any cost.

  1. Updating Incorrect Personal Details

The wrong listing of personal details by a bank or any other financial institution, like the addition of an alphabet in the name or a typo error in your father’s name or your name, can make a big change. A minor change can make a big difference by creating a unique combination of Name, DOB, Father’s name, and other details. However, this is not considered to be fraudulent if it’s done by mistake by NBFC and will help repair your CIBIL score. The individual can easily take advantage of this mistake and rebuild their CIBIL score once the account is free of default/delayed payment.

  1. Wrong Mapping / Mistaken Identity

CIBIL account also consists of your passport number, driving license number, Aadhar, or PAN number. Suppose there is an error in any of the above documents or is mistakenly switched to someone else’s details. In that case, it can land you into significant trouble while availing of a personal loan, home loan, or business loan. There are many instances in which a person having a good CIBIL score gets rejected just because the financial institution wrongly mapped the details of your passport number with some other individuals having the same name and father’s name to your account. This will create a lot of havoc as someone gets to make use of the opportunity while you are being rejected. Also, it may become hard to prove whether the error was intentional or unintentional, giving a chance to misuse this loophole easily and repair their CIBIL score.

  1. Making Changes In PAN Details/ New PAN

Changing PAN is the easiest way to clean or refresh your CIBIL score. Changing Pan creates a unique combination of an Individual name, a Father’s Name, and an individual’s date of birth. Changing PAN establishes a possibility of all three data points being the same for two different individuals, which is rare and not impossible. However, any change in PAN or its combination is considered fraudulent. Also, one should keep in mind that holding more than one PAN is illegal, and any error/mistake in PAN details should be brought to the notice of the Income Tax department.

How Often Should You Check Your CIBIL Score?

Once should pull out their CIBIL report at least twice a year to check for errors/mistakes/ wrong reporting, etc. As per RBI guidelines, every individual can get their free CIBIL score report free every year. Therefore, you can use this free service to keep a check on your CIBIL score.

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