All about CIBIL Defaulter

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Let us understand that there is no separate defaulters list with the banks or credit bodies. Rather, credit companies maintain data pertaining to your repayment performance on credit of all sorts. This data is expansive and includes timely payments as well as defaulted payments of the borrower’s. Any individual who has ever been on the credit line gets a report automated in the credit bureau together with information on the repayment timings. When repayments are late or not made at all, it has a negative impact on your credit score.

Action by Banks on Loan Applications around your CIBIL, Experian, CRIF Highmark or Equifax Reports

When you file an application for a loan, the respective bank will attain a copy of your credit report from either of four credit bureaus namely Experian, CIBIL, Highmark or Equifax. This is done in order to evaluate the loan application. In case you have a low credit score or a record of delayed repayments, credit institutions will hesitate in lending you the money. They will likely disapprove your loan application considering the delayed or defaulted payment record. Banks consider the same in case of a credit card application.

How to remove your name from CIBIL defaulter list?

  • Examination of Your Credit Report Make a careful examination of your credit history, this will help you understand your mistakes and will also ensure that your details in the report are flawless and correct.
  • Clear Off Your Dues The best way to improve your credit report, is to clear off your all outstanding credit. In case you have any financial limitation, you should speak with your lenders in advance and make a way out. Once your bills are cleared, wait for 3 months and again check your credit report.
  • Pay in Time A delay in the payment of the loan or credit card instalment has negative impact on your credit history. If you desire an improvement of your credit score or if you want to keep the good score good, you should start paying your monthly instalment before the due date.
  • Spend as Per Your Credit Limit Try to spend no more than 30% of your credit limit. This one move will always keep your credit score healthy.
  • Take Loans One at a Time If you apply for multiple loans in the same go, you will only show your credit hunger. Applying for short duration loans is not a good idea either. Therefore, you should apply only for one loan at a time. This makes for easy payments and higher possibility of getting the loan approved.