Maintaining your credit profile is essential in today’s financial world. The first step towards keeping your finances healthy is knowing your credit standing and ensuring you’re not a defaulter. However, the term “CIBIL defaulter list” is sometimes misconstrued. Let’s break it down and understand how to run a CIBIL defaulter check and what you can do to improve it.
What is the CIBIL Defaulter List?
The truth is, there is no such thing as an official CIBIL defaulter check or list. CIBIL, or Credit Information Bureau India Limited, maintains credit scores and reports on businesses and individuals based on their credit behaviour. When a person fails to repay loans or credit card bills on time, this is recorded in their credit report. Lenders and financial institutions often use these reports to evaluate an individual’s creditworthiness.
What people commonly refer to as the “CIBIL defaulter list” is essentially a record of individuals with poor credit scores or loan defaults that financial institutions or lenders might use internally.
Why Might you be Concerned About the CIBIL Defaulter List?
Getting branded as a defaulter may result in:
1. Loan rejection: Most lenders refuse to approve loan requests, given the bad repayment history.
2. High interest rates: High interest rates would be charged to counterbalance the risk even when a loan is sanctioned.
3. Restricted access to credit cards: Credit card companies are less likely to approve new applicants given poor credit history and risk.
4. Impact on employment opportunities: Some companies check credit reports during background verification.
How to Check CIBIL Defaulter List?
Since there isn’t a distinct “defaulter list,” looking at your CIBIL score is the best way to determine the status. The procedure is as follows:
Step 1: Visit the official CIBIL website
i. Go to www.cibil.com, the official website of TransUnion CIBIL.
ii. Go to the individual credit report page.
Step 2: Register or log in
i. New users: To create an account, enter your name, contact details, birth date, and PAN card number.
ii. For current users: Enter your login information.
Step 3: Give the required information
The following information is required when registering or seeing your report:
i. Personal information: Name, address, gender, and birth date.
ii. Identification details: A valid ID, such as a PAN card number.
iii. Credit card or loan information: For identity verification.
Step 4: Cover the charges
You will have to pay a nominal fee to check your entire CIBIL score report. Moreover, CIBIL offers annual plans with unlimited credit history access as well.
Step 5: Analyse your credit report
You can check your report for:
i. Credit score: A score below 650 indicates it is bad, and there’s an increased possibility of default.
ii. Account details: All your credit card and loan details, including overdue dates.
iii. Payment history: Missed payments or defaults.
iv. Credit inquiries: How many loan or credit card applications.
How to Interpret your Credit Report?
1. Defaults: Any amounts due or unpaid settlement would mean issues in repaying the loan.
2. Account loan: Check whether or not all the accounts listed are actual. Discrepancies might denote fraud or mistake.
3. Assess credit utilisation: Credit score is usually reduced by heavy use of credit limits.
4. Check closed accounts: Verify that all paid loans and credit cards are reported as “closed”.
What to Do if you Find Defaults or Errors?
If you discover errors or defaults on your credit report, you need to:
1. Verify the default: Check again to confirm the default; this could be due to:
i. Actual late payments
ii. Errors in credit reporting
iii. Fraud
2. Speak with the lender: Regarding actual defaults, talk to your lender about the default and determine the amount owed and potential repayments. If terms are discussed, the default can be removed.
3. Raise an issue: Use the website’s “Consumer Dispute Resolution” tab to contest any errors you discover with CIBIL. Be sure to support this with pertinent evidence.
4. Monitor your report: Make sure you regularly review your credit report and that resolved disputes are accurately reflected.
How to Not Get Listed as a Defaulter?
1. Pay on time: To avoid missing payments, activate auto-debit services and always pay your EMIs and credit bills before the due date.
2. Keep your credit usage ratio low: Ensure that credit utilisation does not exceed 30% of its limit.
3. Limit credit inquiries: Avoid applying for several credit cards or loans within a short period.
4. Regularly reviewing your credit report: It helps you detect and correct issues before they become worse.
5. Plan your finances: Budget your income to ensure you can comfortably pay off your debts.
How do Financial Institutions Use Credit Reports?
Financial institutions and lenders review your credit report to determine:
1. Loan eligibility
2. Interest rates
3. Loan limits
Your report’s low credit score can substantially reduce your likelihood of getting financial support as it could indicate defaults and poor credit repayment history.
Benefits of Maintaining a Good Credit Score
1. Availability of credit: Quick approval of loans and credit cards.
2. Better loan terms: Reduced rates and more credits.
3. Financial independence: Ability to cater for crises or investments.
Conclusion
If you’re wondering how to check the CIBIL defaulter list, you can understand where you stand through regular credit report checks and avoid becoming a defaulter. If you want to enhance your creditworthiness or explore customised financial solutions, Tata Capital provides seamless services to meet diverse financial needs. From personal loans to customised credit offerings, Tata Capital can be your trusted partner.
For expert guidance and tailored solutions, visit the Tata Capital website or download the Tata Capital app.
FAQs
You can pay outstanding dues, negotiate settlements, or dispute errors through CIBIL's online dispute resolution. Once done, you can get a No Objection Certificate (NOC) from the lender.
Dispute unauthorised enquiries through the CIBIL website with evidence. Avoid frequent credit applications to minimise hard inquiries.
24 January 2025
5 mins read
Previous Post
