I was shocked to see two unknown loans on my credit report. It took me a couple of weeks to get my credit history repaired.
This is a usual scenario in India because credit bureau is still in early stages. There are three credit bureau companies in US – TransUnion, Experian and Equifax but only CIBIL is maintaining credit history for Indian consumers. TransUnion is CIBIL partner in India.
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- I was aware of credit history
- Banks check credit score before approving loan
- I was lucky to check my CIBIL report before applying for loan
- But they sent my report to wrong address
- I won the war
- Tips to maintain your credit history in green health
I was aware of credit history
I lived in US for some time so I knew about credit history and it’s importance for personal finance.
Credit history starts from the first approved loan whether it is credit card, home loan, car loan or personal loan. Bank is responsible to report loan activities to credit bureau companies. Bank share details like Name, Address, Salary, PAN, Loan total amount, EMI and period. Banks keep on updating Credit Bureau with EMI payment status.
Your credit score drops significantly even If you miss single payment
If you default any loan then it takes few years to repair your credit history which means banks will not approve you any loan.
Banks check credit score before approving loan
What you thought, why banks are reporting loan activities to the credit bureau? This is centralized system. All banks report our loan activities to CIBIL and scrutinize credit report before approving any loan.
Gone are early days when people fraud with one bank but get approved for loan from some other bank.
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I was lucky to check my CIBIL report before applying for loan
Thank GOD I have not applied for any loan before checking my CIBIL report. My loan would definitely be rejected because of someone’s fault.
It was the fault of CIBIL system that my credit report was displaying loans which I never applied for. I was surprised to see that name of one loan holder was not even matching with my name. How that loan can appear on my report?
I dialed their phone and explained the situation to customer care executive. I was feeling like talking to government office babu.
They were rough and arrogant, like if it’s my fault. They asked me who is XYZ whose loan is on my report.
What the f*ck!! How can I know who is he? It’s your job to figure out. And why don’t you first remove his name and loan details from my account.
I received email but no action
Have you experienced this ever in life? I received their standard format email but no action. What would have happened if I had applied for loan without checking my report?
There were so many questions in my mind. I was frustrated and worried.
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I followed up matter over phone for many days
I spoke to customer care executive every other day. They never apologized for their mistake. Why should they? They were hired by CIBIL to write complaints and someone was handling critical financial data in their back yard.
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One day they informed that my credit report has been rectified and I have to order again to see updated report. I have to argue with them for long time that I have right to see updated copy without paying again. One of their senior guy took over control and ordered free copy for me.
But they sent my report to wrong address
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What else can you expect from such a sarkari department. My credit report was traveling to a wrong address. I shouted but they were helpless in aborting post delivery.
I was feeling like being trapped into conspiracy by two government departments of India.
They dispatched another copy at my correct address.
and they removed only one loan
I was thinking if I am the only special one or they were doing this with every second person.
They have not removed loan information of some other person having difference in surname, father name and address.
I kept on fighting with them like I am on mission impossible
This was my credit report and it was critical for my future financial planning. I followed up with them every week.
I won the war
I was happy. My clean credit report was at home. I was confident to apply for any loan or credit card.
Tips to maintain your credit history in green health
- Never ever ever default on loan payment
- Always pay loan EMI and credit card bills before due date
- Be aware while availing EMI options on electronics and other stuff. Never miss EMI even as low as Rs. 10
- Get closure documents from loan company when you clear all loan
- Do not apply for credit card if you don’t really need. Every application leaves bad mark on credit score
- Do not close your oldest credit card. Longer credit history is better
- No matter how bad is CIBIL services, check your CIBIL report at least once per year
- Always check your credit score before applying for loan
- Maintain at least one credit card. Find a good credit card from my list of best credit cards of India with no annual fees. No credit history without loan or credit card.
Share your experience and questions in the comments below.