How To Remove Name From Cibil Defaulter List After Settlement?

How to remove Name from Cibil after settlement?

First thing, There doesn’t have any Cibil Defaulter list

In fact, Cibil has data about the consumer’ credit history records such as credit card repayment
List, individual and entities borrowing list. 

The Cibil provides the credit score on the basis of the consumer’s previous Credit history record.

Now, the situation is, you have already paid all over dues and bounce charges to the banks.

And you want how to remove Name from Cibil after settlement but as I have already told you

There Is no such any CIbil defaulters list. 

Now the question is what’s next? What’s the solution?

simply you should see whether your Credit score has improved or not?

And check your Cibil score free before making a decision.

How many years Cibil keep record of defaulters?

Normally Cibil keeps down the Credit score of defaulters for 7 years until you take a necessary step

How to improve Cibil score after settlement?

How to improve Cibil score after settlement
  1. Pay existing loan payment-If you have any current loan or Credit card, you should pay it on a regular basis without any defaulting 
  2. Apply for new credit card-Your Cibil score can be increased if you apply for a credit card against a fixed deposit of your account.
    Let’s say you have an Rs.20000 fixed deposit in your account and if you apply for a credit card, the bank can allot your credit card up to 90% limit.
    In this way, you can improve your credit score
  3. Mutual communication with a lender – You can directly communicate with the lender to close your account rather than to settle your account.

    Because the Settlement can not improve your credit score, it’s a loss to the bank that will reflect the negative impact of your Cibil score

    So, request your bank to close the account even by paying extra fees and charges, however, the loan account should be closed.
  4. Maintain your credit utilization
    Suppose you have credit card limit Rs.50,000, You should always try to expend limit up to 30%-50% which are Rs.15000-25000 per month.

    Suppose you have credit card limit Rs.50,000, You should always try to expend limit up to 30%-50% which are Rs.15000-25000 per month. 

    Your Cibil score must improve by maintaining your credit utilization up to 20%-30% of the total limit.
  5. Manage credit cards
    Don’t go for the multiple credits card because it might be difficult to manage your annual charges and multiple due payments 

    Suppose you forget to pay your credit card charges due to multiple cards, then it would cause you to decline your Cibil score. 
  6. Don’t inquiry another loan
    Do not apply for another loan application immediately after the settlement because the lender might reject your application.
    Your Cibil score might be affected for this reason.
  7. Go for the Secured loan
    Different lenders have different credit regulations so some banks allow secured loans like two-wheeler loans, loan against fixed deposits and allow guaranteers to apply for the loans easily.

    Always prepare to have backup repayment money for the future to repay the Loan Installment.

how to remove Name from Cibil defaulter list?

how to remove Name from Cibil defaulter list

There may come the situation you might not afford Loan EMIs, Your Cibil score may probably be reduced.
If you don’t want to be the Cibil loan defaulter list In that case how you can save
Of yourself?

  1. You can talk your lender to extend your loan tenure to reduce your loan EMIs 
  2. Request your bank to defer your loan EMI in reason you have already lost your job and facing a medical emergency.
  3. You can show genuine reason to the lender so that they can postpone your loan EMI.     

Suppose You have already cleared all your dues and loan EMIs 

But     

Still, If your Cibil score is below average number like from 300 to 500. 

Then It’s your duty to verify the below checklist whether there is anything wrong with you?.

You can check all the mistakes that happened with you free from Cibil’s official websites. The mistakes might be 

  •  Account Information

         Your lender may wrongly enter your account as Settled/ written off rather than closing your account. If the bank Wrongly makes it settled/written off you should inform the Cibil to resolve the issue.

  • Duplicate Account

    Check whether there might be the account which doesn’t include your
    Credit information. In such cases, your credit score will not improve and you should 
    follow the Cibil dispute resolution process
duplicate account
  • Payment History
    Check on your payment history that If you see any type  of missing EMI payments like it might show anything without “XXX” and “0” then it can be viewed as negatively in Cibil
    score.
payment history of Cibil account

How to raise dispute in Cbil? How to make Cibl correction Online?

You can simply go to Cibil account page then go to Credit report>Dispute center> dispute an item

after clicking “dispute an item”, You will get different dispute types to rectify it.

You can now check all your data whether It’s correct or not and you should change wrong data entry. Finally, click on “SUBMIT DISPUTE”

 In this way, you can raise your dispute and It may take time to resolve the issue from CIbil’s End.

Cibil will inquiry with the lender about the issue, if the issue is wrongly made by the lender then it

will be rectified by the Cibil and It makes the Cibil clearance.

Conclusion

Always maintain your Cibil score high as far as possible and some points to remember

  1. Don’t apply for multiple loans after settlement otherwise it will hamper Cibil score
  2. Apply for a secured loan and credit card against your fixed deposit
  3. Repay all your existing loan EMI and continue.

Hence, wait for at least 8-9 months time to improve again your credit score.

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