How to Read CIBIL Report? (With Dispute Resolution Process)

What Is a CIBIL Report?

The Credit Information Bureau (India) Ltd (CIBIL) generates CIBIL reports. It is a detailed record of a person's credit history and repayment activity. The report contains details regarding the individual's credit accounts, including credit cards, loans, and other credit facilities. It also includes information regarding the individual's repayment history, such as whether or not they have paid their bills on time, defaulted on any loans, and the current status of their credit accounts.

Lending bodies and other financial organizations use the CIBIL report to assess an individual's creditworthiness and choose whether to extend credit or give loans. A high CIBIL score implies that a person has an excellent credit history and is more likely to be granted credit. A low CIBIL score, on the other hand, shows that a person has a poor credit history and may be seen as a high-risk borrower.

Common Terms You Need to Know While Analyzing Your Credit Report

When analyzing your credit report, it's important to understand the following common terms:

1. Credit Score: A numerical value that represents your creditworthiness based on your credit history and behavior. 
2. Credit Report: A detailed report that shows your credit history, including credit accounts, payment history, and inquiries. 
3. Credit Utilization: The percentage of your available credit limit that you're currently using. 
4. Payment History: A record of your past payments on credit accounts, including any missed or late payments. 
5. Credit Inquiries: Records of companies that have requested your credit report. 
6. Derogatory Marks: Negative information on your credit report, such as late payments, defaults, bankruptcies, or foreclosures. 
7. Collection Accounts: Unpaid debts that have been sent to a collection agency. 
8. Public Records: Legal actions, such as bankruptcies or judgments, that can affect your credit score. 
9. Account Status: Indicates whether a credit account is open, closed, or has been transferred to another creditor. 
10. Authorized User: A person who is authorized to use your credit account but is not responsible for repayment. 
11. Account Age: The length of time that an account has been open. 
12. Balance: The amount of money owed on a credit account. 
13. Available Credit: The amount of credit that is still available to you on a credit account. 
14. Credit Limit: The maximum amount of credit that you can borrow on a credit account.

Maintaining a good credit history, and ensuring that the same is reflected in your CIBIL report is a must to be able to access loans when you need them the most. You can get your CIBIL report by applying for the same at the CIBIL portal. Read on to find out how to understand better the various sections provided in the report:

1. CIBIL score

The very first thing you would see in the CIBIL Credit Information Report is your CIBIL Score. This is an overall valuation of your credit history and is used by lenders to evaluate your creditworthiness. The score is a single number between 300 and 900. Higher the score, more favourable is your application for new credit extension as this means you have been repaying your loans on time and have enough disposable income to repay another loan if required. This is calculated based on the information you would find in the Account Information and Enquiry Information sections of the report. In a few cases the score may be displayed as NA or NH, this indicates one of the following:

1. You do not have a credit history yet - this is mostly applicable for those who don’t have any income - like young students.
2. You have not undertaken any loans over the last few years
3. You have no credit cards or any other exposure.

Must Read:Check CIBIL Score Online

2. Personal information

The second section of the report presents your personal information like your name, date of birth, gender, etc. as registered with CIBIL. The section also contains all the identifying information that CIBIL may have about you. This includes:

1. PAN
2. Passport number
3. Aadhaar
4. Driver license number
5. Voter ID number
6. Any other identifying information provided by the lenders to the bureau.

Must Read: Personal Loan for Low CIBIL Score

3. Contact information

Your addresses, telephone number, and email address are present in the next section of the report. These details are captured as shared by the lenders. As part of addresses, the report would capture your office address, residential address - both permanent address and the current address. The report does not just contain the current information, but historic information as well. The historic information goes back to a maximum of four iterations.

4. Employment information

This section contains the information about your occupation, and your income based on the information shared by you when opening an account for a credit facility or loan. Again, this information is presented as-is from what the lenders submit to the bureau as part of the repayment information.

5. Account information

This is arguably the most important part of the report as your CIBIL score is greatly influenced by this. This section presents information about all your loans and credit cards and your repayment history. All the data shared by the lenders is summarized in a table including:

1. The name of the lender,
2. Type of credit facility,
3. Account Number,
4. Type of Ownership,
5. The date of opening the account,
6. The date of last payment,
7. Loan Amount,
8. Outstanding Balance,
9. A month-on-month record of the last 36 months, and
10. The Days Past Due (DPD), i.e. the number of days for which the payment has been due

Must Read:Check CIBIL Score for a Personal Loan

Status of the account could be one among the following:

1. Standard (STD) - Payment settlement within 90 days.
2. Special Mention Account (SMA) - Special accounts are made that report standard accounts transitioning towards sub-standard. 
3. Sub-Standard (SUB) - Payment settlement after 90 days.
4. Doubtful (DBT) - Any account that is sub-standard for 1 year.
5. Loss (LSS) - An account that reflects loss and is uncollectable.

STD is considered a favorable status. Every other status is negative.

6. Red Box

Within the Account Information section, if any details are disputed then a red box with an alert message is shown above the account information along with the date of the dispute.

7. Inquiry information

The inquiry section is the final section of the CIBIL report. It contains information about any recent inquiries made by lenders. Every time you apply for a loan or a credit facility, the lender would send an inquiry to CIBIL about your credit history. The same is recorded in your CIBIL report as well. Each entry includes the name of the lender, date of the application, type of the loan, and the loan amount requested.

Must Read: How to Check CIBIL Score For Personal Loan?

Dispute Resolution Process

If anything in your credit report looks off, you can raise a dispute with CIBIL to correct the same. Follow the below steps for this:

1. Submit the Online Dispute Form at the CIBIL portal
2. CIBIL will show the disputed entries as disputed in the report
3. CIBIL will reach out to the lenders to get the correct information, based on the type of dispute
4. If the lender accepts the dispute, the report will be changed to reflect the same
5. The turnaround time for dispute resolution is typically under 30 days.

How To Improve The CIBIL Score

A CIBIL score of 650-700 and above is considered healthy. If your score is lower than this, you may find it difficult to get loans and should work to improve your score. Some of the steps that you can take include:

1. Make timely payments on all your loans
2. Do not use the credit card to its limit, and make credit card payments by the due date
3. Keep your credit utilization low
4. Pay off dues in full as soon as possible

How to rectify CIBIL Report errors

If you discover inaccuracies on your CIBIL report, you can correct them by taking the following steps:

1. Examine Your CIBIL Report: Get a copy of your CIBIL report from the website of CIBIL or any of the other authorised credit information businesses in India. Examine the report carefully and make note of any flaws or inconsistencies.
2. Collect All Pertinent Papers: Collect all pertinent documents that support your claim, such as loan repayment receipts and credit card bills.
3. Contact CIBIL: Fill out the dispute resolution form accessible on the CIBIL website to file a disagreement. Provide all pertinent information and documentation to support your claim.
4. Follow Up With CIBIL: Ensure that your dispute is being processed by following up with CIBIL on a regular basis. Also, you can monitor the status of your dispute on the CIBIL website.

CIBIL will advise you of their conclusion regarding your disagreement after considering it.

Follow these steps for CIBIL report correction

Obtain a copy of your CIBIL report: Visit the CIBIL website and request a copy of your credit report. You will need to pay a nominal fee for the report.

1. Review your report: Once you receive your report, review it carefully to identify any errors, inaccuracies, or discrepancies.
2. Gather supporting documents: Gather all relevant documents that support your claim, such as loan repayment receipts, credit card statements, and other related documents.
3. File a dispute: Fill out the online dispute resolution form available on the CIBIL website. Provide all the necessary details and documentation to support your claim.
4. Wait for CIBIL's response: CIBIL will investigate your dispute and contact you with their decision within 30 days.
5. Follow up with creditors: If the error was caused by a creditor's mistake, follow up with them to ensure that they have corrected the error and that it has been reported to CIBIL.
6. Review the updated report: Once CIBIL has updated your report, obtain a copy and review it to ensure that the error has been corrected.

Credit Score Range