Wrong Loan Status Or Delayed EMI Update? Here’s How To Fix CIBIL Score Report Errors

A credit score is often seen as the financial identity card of an individual. Banks and financial institutions rely heavily on these three-digit scores, most commonly generated by TransUnion CIBIL, to assess a borrower's creditworthiness and repayment behaviour. However, credit reports are not always error-free.

A 2024 study in the US on credit report accuracy found that more than 44% of people who reviewed their reports discovered at least one error that could potentially affect their financial credibility. Even minor inaccuracies in a credit report can lower your score, impact loan approvals, or lead to higher interest rates.

Common Errors Found In Credit Reports

Incorrect personal details

Clerical or typographical mistakes in your name, address, age, date of birth, or PAN details can appear in your credit report and may create issues during verification.

Loan accounts showing the wrong status

Sometimes, loans or credit card accounts that have already been closed or fully repaid are not updated by the lender with TransUnion CIBIL. An account may also be incorrectly marked as 'written off' or 'settled,' which can significantly damage your credit profile and be viewed negatively by lenders.

Incorrect outstanding balance

The outstanding loan amount or due balance reflected in the report may sometimes be inaccurate. Since credit scores are calculated based on your credit exposure and repayment behaviour, incorrect loan balances can affect your score.

Duplicate or unfamiliar accounts

Duplicate loan entries or unfamiliar accounts appearing under your name are another common issue that can adversely affect your credit score.

Delayed EMI updates

Even if you have made your EMI payments on time, delays in updating repayment records can result in errors in your Days Past Due (DPD) status. Such inaccuracies can lower your credit score and even lead to rejection of loan or credit card applications.

Unauthorised enquiries or suspected fraud

If lenders have made hard enquiries on your credit profile without your knowledge, it could indicate identity misuse or fraudulent activity. Too many unauthorised enquiries can also negatively impact your score.

How To Correct Errors In Your CIBIL Report?

The good news is that most credit report errors can be corrected through a straightforward process, provided you act quickly and follow the right steps.

1. Check your credit report regularly

Download your latest credit report periodically and review it carefully for any inaccuracies, unusual entries, or suspicious activity.

2. Make a list of all errors

Identify and document every discrepancy in the report, including incorrect personal information, unfamiliar accounts, duplicate entries, or repayment errors. Seeking guidance from a financial advisor can also help simplify the correction process.

3. Raise a dispute with the credit bureau

Log in to the official TransUnion CIBIL website and navigate to the dispute resolution or correction section. Select the incorrect entries, upload supporting documents, and submit your complaint.

Once the dispute is raised, CIBIL coordinates with the concerned lender to verify the information. Most disputes are resolved within 30 days, although lenders may legally take up to 45 days to respond. Consumers can also file complaints offline by sending written requests along with supporting documents to the bureau's registered office.

4. Wait for resolution and verify updates

Once the issue is resolved, review your updated report carefully to ensure all corrections have been properly reflected.

5. Follow up or escalate if necessary

If the correction is not completed within 30 days, you can escalate the matter to the lender's nodal officer. If the issue remains unresolved even after 45 days, you may approach the Reserve Bank of India Integrated Ombudsman Scheme through its online portal, email, helpline, or physical complaint submission.