Apoorvaa Foundation | CIBIL Repair Consultants & Service Provider
Frequently Asked Questions (FAQ)
Banks are threatening me about classifying me as a default customer and put my name in CIBIL. Can Apoorva Foundation Stop this?
CIBIL does not maintain any defaulters list, however banks can update the status of the respective account with CIBIL. If payments are not made on time or if payments are not made intentionally, banks can update the status of the customers in CIBIL even as Sub Standard or for that matter even as willful default.
However if your situation is genuinely bad and you are not in a state to make full payment , Apoorva Foundation can approach your lenders on your behalf and arrive at a settlement option with good waivers or discounts on the current outstanding on your account.
Can Apoorva Foundation help to get my name out of CIBIL?
There is no such option available, CIBIL maintains collects and maintains all credit information. If there has been defaults in your account and if you have resolved the issues with the banks by making full payments or settlements, such status will be updated accordingly in your credit report. However even after settlement or closure of the accounts the history of such accounts will still be there on your credit report.
How long will it take for Apoorva Foundation to get my CIBIL score?
You can get your credit report within 4 to 14working days based on the document you provide.
My loan got rejected because of CIBIL Score does that mean I will never get a loan?
Your score with CIBIL is dynamic and keeps changing , once you have realized that your score is low and have taken a positive decision towards working on your credit score ,no doubt your scores will move up and you will get a loan or a card in the future. However the time line for such improvements is in the range of 12 to 24 months based on your current score and your efforts towards managing your debts.
How to solve issues on my CIBIL score?
You can approach CIBIL directly by filing dispute requests or alternatively approach Apoorva Foundation for the same. We will analyze your report and on obtaining feedback from you, we will help you to file the dispute request with CIBIL and also help you to approach the lender simultaneously to resolve the issue.
I never had a loan but my CIBIL report shows some defaults?
Millions of records are maintained by CIBIL and some time if the financial institutions have wrongly reported due to some errors, there is a possibility of such defaults on your account .However If you believe that either some of the personal details or one or more accounts on your credit report do not belong to you, you should write to the credit bureau. The credit bureau will look into the matter and help you update the information if required.
Can I increase my score in some way immediately?
No there are no shortcuts. It’s a gradual process and one has to work over a period of time to increase the score.
How long does it take for me to Increase the score?
Anywhere in the range of 3 to 6 months based on your current score
Can Apoorva Foundation help me in increasing the score?
Apoorva Foundation has been in the business for over 5 years now and we understand the various factors considered in the dynamism of your credit score. Once we obtain your Credit report and simultaneously understand your financial situation, we can analyze and come with a tailor made solution for you to work on your credit score. We have several remedial solutions that we offer based on the situations you are in. Remedial solutions are different for each of the clients.
Why should I work with Apoorva Foundation on my CIBIL score?
Online CIBIL score can be obtained yourself. However just buying a report and reading the report would not be just sufficient especially when either one of your loan or card is rejected or you were told that the score was not enough or just CIBIL not cleared from the banker.
With the years of experience and with professionals who have specialized in this field of business, you chances of resolving issues and moving forward faster and the right way is always better than you doing it yourself.
What is the advantage of working with Apoorva Foundation on my CIBIL?
Apoorva Foundation will start working from filing an application for the credit report and will work with you until the issues are resolved. Apart from the dispute resolution on your report, there could be old accounts with large out standings after adding all the penal interests and other cost to your account. In such cases our Debt Negotiation team will liaison with the respective financial institution and negotiate on your behalf and get waivers on your account and help you close the account in the right way.
Not only this after closing the account with the financial institution Apoorva Foundation will help you obtain a fresh report from CIBIL to confirm if the settlements or closures are updated accordingly else we further work with you until the issue is resolved o your credit report.
Cibil TransUnion Score
What is the CIBIL TransUnion Score?
The CIBIL TransUnion Score is a 3 digit numeric summary of your credit history. The Score is derived by using the details found in the “Accounts” and “Enquiries” sections on your Credit Information Report (CIR) and ranges from 300 to 900 points. The closer your Score is to 900, the more favourably your loan application will be viewed by a lender. The Score plays a critical role in the loan approval process.
What does my Score mean?
An individual’s Credit Score provides a lender with an indication of the ”probability of default” by the individual based on their credit history. in simple word the Score tells a lender how likely you are, to pay back a loan (should the lender choose to sanction your loan) based on your past pattern of credit usage and loan repayment behaviour. The closer you are to 900, the more confidence the lender will have in your ability to repay the loan and hence, the better the chances of your application getting approved.
What are the major factors that affect my Score?
There are 4 major factors that affect your Score. These are described below:
1. Late payments or defaults in the recent past: Your payment history has a significant impact on your Score. Hence, if you have missed payments on any of your existing loans, over the last couple of years, your Score is likely to be negatively affected because it indicates that you are having trouble servicing your existing obligations.
2. High Utilization of Credit Limits: While the balances on your loans will only reduce over time as payments are made, you must be diligent about making timely payments on your credit cards. While increased spending on your credit cards may not necessarily negatively affect your Score, an increase in the current balance on the card over time is an indication of an increased repayment burden and may negatively impact your Score. It’s always prudent to not use too much credit.
3. Higher percentage of Credit Cards or Personal Loans (commonly known as Unsecured Loans) on your CIR: A higher concentration of home loans or auto loans (commonly known as Secured Loans) is likely to be more favourable for your Score than a large number of unsecured loans. Although unsecured loans offer easy access to finance, it’s also by far the most expensive forms of credit.
4. Behaving “Credit Hungry”: If you have made many applications for loans, or have recently been sanctioned new credit facilities, a lender is likely to view your application with caution. This ‘Credit Hungry’ behaviour indicates your debt burden is likely to, or has increased and you are less capable of honouring any additional debt and is likely to negatively impact your Score.
For information on how to improve your score please refer to the information provided pertaining to How to improve your credit history. Given that the score is derived from it, if you credit history improves, your score will increase.
What does it mean when my Score is "NA" or "NH"?
A Score of “NA” or “NH” is not a bad thing at all. These mean one of the below:
a) You do not have a credit history or you do not have enough of a credit history to be scored, i.e. you are new to the credit system
b) You do not have any credit activity in the last couple of years
c) You have all add-on credit cards and have no credit exposure
It is important to note that while these Scores are not viewed negatively by a lender, some lenders’ credit policy prevents them from providing loans to an applicant with Scores of “NA” or “NH” (applicants with no credit track record). Hence, you may have better chances applying for a loan elsewhere.
Consumer Credit Report
Accounts
What is the difference between an "Account" and an "Enquiry" on my CIBIL credit report?
The ‘Accounts’ section of your credit report contains existing and past credit facilities that you have availed from various loan providers. For example, if you have a home loan and a personal loan, your credit report will reflect both accounts on your credit report along with details such as the name of the lender, type of credit facility, dates of opening and closing (if applicable) of each account, current balances, status of the accounts and your payment history. Your credit report summarizes your credit behavior across these accounts for the last 36 months.
The ‘Enquiry’ section of your credit report will be populated when a lender accesses your credit report from CIBIL in order to evaluate your loan application. If you have applied for a home loan of Rs. 10,00,000 then the ‘Enquiry’ section of the credit report will be populated to show the name of the lender you applied to, along with the enquiry date (date on which the lender has accessed your credit report, enquiry purpose (in this case it was a home loan) and the enquiry amount (which would be for Rs. 10,00,000 in this case). All enquiries made by lenders in the past are displayed here.
There is a critical distinction between an Account and an Enquiry in that the former denotes actual loan obligations that you currently are bearing while the latter denotes that you had applied for a loan or other credit facility from various lenders. Given that open accounts have an impact on your ability to repay additional debt obligations, having many open accounts may result in your loan application being viewed negatively by a lender. This need not necessarily be the case if you have many enquiries on your credit report.
What is the difference between "High Credit" and "Sanctioned Amount" on my credit report?
‘High Credit’ in the accounts section of your credit report is only displayed with credit card and overdraft accounts. It denotes the highest credit utilized in a single month over the life of that credit card. For example, 2 years ago I spent Rs. 75,000 on some emergency medical treatment on my credit card (which has a credit limit of Rs. 1,00,000). Given, that was the single highest monthly balance in the history of my credit card usage, this is what gets reflected in my credit report.
‘Sanctioned Amount’ is displayed along with credit facilities other than credit card and overdraft accounts. The Sanctioned Amount field denotes the amount disbursed to you.
What does "Date Reported" mean?
The “Date Reported” on your credit report indicates the date on which that information was reported to CIBIL. Sometimes if a lender has stopped reporting information (say on a closed account), the date reported could be a year or more old. If your date reported on open accounts is not within the last 3 months of the date of the credit report you should raise a Dispute Resolution request.
How does "Written Off" or "Settled" affect your credit application?
Given that a CIBIL credit report helps a loan provider ascertain your ability to pay additional debt based on your past performance, a ‘’written off’ or ‘’settled’’ account implies that you have not been able to pay your past dues. Hence, Loan providers may view accounts that are reported as ‘’written off’ or ‘’settled’’ negatively and this may affect your chances of a loan approval.
Closed loan accounts and what they mean to your Credit Information Report?
If you find a date adjacent to the ‘Closed’ field in the account section of your CIBIL credit report, this means that that loan account has been closed by the loan provider. In other words, it means you have paid off your loan. However, if you have not been able to pay off your dues in full, your account could still be marked ‘Closed’. In such cases, you may see the ‘Status’ section populated (Written-off or Settled), which is viewed negatively by loan providers.
If no date is populated in the ‘Closed’ field, it implies that your account is still open. This can be harmful to your loan application, if you have taken many loans over the years. Now, why is this harmful? Well, if many loan accounts are perceived to be open, the loan provider is likely to think that you already have large monthly outflows in terms of EMIs. This can negatively impact your loan application. Hence, if you see open accounts on your credit report that are actually closed, raise a Dispute Resolution request.
What are the different types of Ownership Indicators that can appear on your credit report?
The Ownership indicator tells the Loan provider who is responsible for payments on that credit facility. There are 4 types of indicators that can appear on your CIBIL credit report:
1. Single: You are solely responsible for making payments on the account.
2. Joint: You and someone else bear joint responsibility for payments on these accounts. It is important to check your credit report periodically, because late dues on a Joint account are likely to affect your loan application, even if you are not the one paying off the loan.
3. Authorized User: This is used for add-on credit cards. It implies that you have an access to credit, but are not responsible for paying dues on that particular account.
4. Guarantor: A guarantor pledges to repay a loan on behalf of a third party who has taken a loan. Hence, he provides a guarantee to the loan provider, that he will honour the obligation, in case the principal applicant is unable to do so.
What does DPD mean? What are the 2 ways in which DPD can be reported?
DPD or Days Past Due appears in the Account(s) section of your CIBIL credit report. Here, it resides with one other piece of information - the month and year of payment. The DPD indicates how many days a payment on that account is late that month. Anything other than “000” is considered negative by a Loan provider. Up to 36 months of this payment history (with the most recent month displayed first) are provided in this section. For example, if you have taken a loan whose payments started in Aug 2010 and are 3 months late on a payment due at the end of Sept 2010, your DPD may be reflected as follows:
DPD 090 060 030 000 000
Month/Year 12-10 11-10 10-10 09-10 08-10
Given that your credit history helps a Loan provider ascertain your ability to pay additional debt based on your past performance, having DPD other than “000” on your CIBIL credit report would imply that you have not met your financial obligations in the past. Hence, Loan providers may view accounts that are reported with DPD as anything other than “000” negatively and this may affect your chances of a loan approval.
It is important to note that some Loan providers report DPD as follows:
|
DPD |
Denotes |
Explanation |
|
STD |
Standard |
Payments are being made within 90 days. Any account overdue by more than 90 days is classified a Non-Performing Asset (NPA) by lenders |
|
SUB |
Sub-Standard |
An account which has remained an NPA for up to 12 months |
|
DBT |
Doubtful |
The account has remained a Sub-Standard account for a period of 12 months |
|
LSS |
Loss |
An account where loss has been identified and remains uncollectible |
Any classification other than “STD” is viewed negatively by Loan providers during the loan application process.
On occasion you may see “XXX” reported for your DPD on a certain account. This means that the Loan provider has not reported that month’s DPD to CIBIL and hence, there’s no need to worry.
The best way to avoid having anything other than DPD of “000” or “STD” on your CIBIL CREDIT REPORT is, to always pay on time and the best way to always pay on time, is to avoid more debt than you can comfortably handle with your current income.
What steps can I take to prevent DPD appearing again on my credit report?
The best way to avoid this from happening is to always pay your bills on time and avoid taking on excessive debt. Just so that you are always able to honor your loan obligations.
However, there is a situation where you may face some difficulty.
If you have any sort of credit facility, you must keep track of your credit profile by reviewing your credit report 2-3 times each year. This will ensure that you detect and resolve any credit related problems well in advance.
Enquiries
What does it mean when I see "Enquiries" on my credit report when I haven't applied for a loan?
Enquiries are usually made on your credit history when you apply to a lender for a loan. The lender accesses your CREDIT REPORT to assess your repayment capability. When you see Enquiries that you have not made it means one of 2 things:
1. The lender is making an Enquiry to review your overall financial health
2. Someone with access to your personal information may have approached a lender in order to apply for a loan. This is worrisome because the lender could believe that the applicant is genuine (even though this may not be the case) and may proceed to sanction the loan.
In the event that a loan is sanctioned by a lender the account will appear on your credit report within 45 days.
What should I do when I see "Enquiries" that I haven't made?
The first thing you should do when you see Enquiries that you have not made is to check your credit report for loan accounts that do not belong to you. If you do find discrepancies, immediately raise a ‘Dispute Request’ by visiting the ‘Dispute Resolution’ page on the credit bureau’s website.
If you are informed by CIBIL that the loan provider has rejected your Dispute Request you should report the erroneous account to the relevant loan provider immediately so that the it is alerted to the identity theft case. This will prevent the situation from recurring.
What is identity theft?
Identity theft occurs when someone uses your personal information to apply for a loan or credit card. If this application is successful the individual has access to finance that you are liable for. The individual who has stolen your identity will probably not pay back the misappropriated funds. Hence, the lender will update your Credit Information Report (CIR) to say that you have defaulted on a loan. Unfortunately, in the event that your identity is stolen, you will be unaware that this has occurred. You will most likely only discover this when you apply for a loan and your loan application is rejected.
How can I protect myself from identity theft?
The easiest way to prevent Identity Theft is to regularly monitor your credit history. Purchase your CIR 3-4 times a year and ensure that your credit history accurately reflects your credit usage and activity. If you see Enquiries (loan applications) that you have not made, immediately.
Understanding the loan evaluation Criteria
What factors on my credit report are the most critical to my loan approval?
CREDIT REPORTs have been widely used by loan providers to evaluate loan applications for over 5 years. However, only recently have people begun to realize, how crucial it is to be aware of and maintain their credit history. Understanding the CIBIL credit report helps you identify the right time in your financial life cycle to apply for a loan and increase your chances of a loan approval. Listed below are the most important attributes looked at by a Loan provider while evaluating your credit application.
· -> Attribute 1: Payment Histor
This appears in the Account(s) section of your CIBIL credit report. There are 2 parts to this information: the Days Past Due (DPD), and the month and year of payment that reside here. The DPD indicates how many days the payment is late that month. Anything other than “000” is considered negative by a Loan provider. Up to 36 months of this payment history (with the most recent month displayed first) are provided in this section.
· -> Attribute 2: Current Balance
Also appearing in the Account(s) section of your credit report, the current balances on various loans indicate the depth of your debt. The sum of your current balances helps a Loan provider determine your strength to take on additional EMIs, in relation to your current income. Naturally, lower the current balance, the better the chance of your loan getting approved.
· -> Attribute 3: New Credit Facilities
If a loan provider observes that you have recently been sanctioned a number of new credit facilities, it would mean that your monthly outflow in terms of EMIs, are likely to have increased. Hence, it may have a negative impact on your loan application.
· -> Attribute 4: A number of new Enquiries
If you have applied for a number of loans in the recent past, the chances of your loan getting approved are likely to suffer. Simply because, this credit behaviour indicates that you are “Credit Hungry” and in an urgent need of money. It is likely to make Loan providers more cautious while evaluating your credit application.
If you are planning to apply for any sort of credit facility for a purchase (home or car) in the near future, it is imperative to check your CIBIL credit report 2-3 times each year and ensure that your ‘Reputational Collateral’ is reflected accurately. This will provide you with access to credit faster and at better terms. Rest assured; that Enquiries are not added to your CIBIL credit report when you purchase one directly from a CIBIL.
Managing Your Credit History
How do you improve your credit history?
Your credit history, other than your income, is the single most important tool used by a Loan provider to evaluate your application for any loan or credit card application. Naturally, it’s important that you understand your Credit Information Report (CREDIT REPORT) and what it takes to maintain a credit history, so that is viewed favourably by Loan providers.
A good credit history can be maintained by following these 7 simple rules:
· Rule 1: Always pay your bills on time. Late payments are viewed negatively by Loan providers and may affect the chances of your loan getting approved.
· Rule 2: Keep your balances low. While the balances on your loans will only reduce over time as payments are made, you must be diligent about making timely payments on your credit cards. Also, you should control your utilization. For example, if you have used Rs. 90,000 out of a credit limit of Rs. 1,00,000, this may be viewed negatively by a Loan provider. It’s always prudent to not use too much credit.
· Rule 3: Maintain a healthy mix of credit. Your credit history should contain a mix of a home loan, auto loan and a couple of credit cards. A high number of just credit cards may affect the chances of a loan approval. More the number of credit cards with high utilization, larger are the payments resulting from its high rate of interest.
· Rule 4: Apply for new credit in moderation. If you have made many applications for loans, or have recently been sanctioned new credit facilities, a Loan provider is likely to view your application with caution. This ‘Credit Hungry’ behaviour indicates your debt burden is likely to, or has increased and you are less capable of honouring any additional debt.
· Rule 5: Think twice before closing credit card accounts. While, using credit cards may negatively impact your credit history, unused credit cards actually imply that you are financially secure. This makes Loan providers view your application more favourably.
· Rule 6: Monitor your co-signed and joint accounts monthly. In co-signed or jointly held accounts, you are held equally liable for missed payments. This is extremely important because your joint holder’s negligence could affect your ability to access credit when you need it.
· Rule 7: Review your credit history frequently throughout the year. Unpleasant surprises in the form of rejected loan applications can be avoided by ensuring that your CREDIT REPORT accurately reflects your current financial status. So reviewing your credit history 3-4 times each year is imperative.
Though these general rules are important to keep in mind, each loan provider has its own policies to sanction a loan to an applicant.
It is important to note that your CIBIL TransUnion Score will begin to rise as you improve your credit history
Dispute Consumer
What kind of errors can occur in the CIBIL credit report?
Your Credit Information Report (credit report) is an important factor in the loan application process. Hence, mistakes on your credit report can result in reduced chances of a loan approval. It is very important for every credit active individual to understand the various types of common mistakes that can occur in their Credit Report.
• Inaccurate Current Balance or Amount Overdue When you have purchased your CIBIL credit report you may notice that your Current Balance or Amount Overdue may not be updated for your most recent payment. This will usually be the case if you have purchased your CIBIL credit report within 45 days of making a payment. Loan providers report information to CIBIL on a monthly basis, which would mean that the latest payment will not reflect on your CIBIL credit report.
An inaccurate Current Balance (especially on the high side) implies that you have more debt than you actually do while an “Amount Overdue” indicates that you are unable to service your existing loan obligations. Both are viewed negatively by loan providers and may affect the chances of getting your loan application approved.
• Incorrect Personal Details Credit information is submitted to CIBIL by various loan providers. Each loan provider submits your credit account along with your personal information such as name, address, date of birth, PAN Card Number and so on. CIBIL then uses the personal information to collate these details into a single credit report which provides your complete credit profile.
Ensure that you have provided accurate and updated details to your loan provider at the time of your loan application. In addition, every time your personal details change or are updated, you should inform your loan provider so that it is possible for it to make the necessary changes to its database.
• Ownership If you believe that either some of the personal details or one or more accounts on your credit report do not belong to you, you should write to the credit bureau. The credit bureau will look into the matter and help you update the information if required.
Overall, the best solution is to check your CIBIL credit report before you apply for a loan so that you know your loan provider is evaluating your loan application based on accurate data.
What does CIBIL do once I raise a Dispute Request?
Once you have raised a Dispute Request, the CIBIL checks whether all the requisite details have been provided. The request is then routed to the Dispute Resolution Department for Analysis. This is because one type of dispute request can be resolved by CIBIL itself. If the credit bureau is unable to resolve the request, it is routed to the relevant loan provider. Once the loan provider confirms that there is an error it will provide CIBIL with corrected data. CIBIL then updates the data and informs you as appropriate. Always remember, it is the duty of CIBIL to help you resolve your request.
Please remember that CIBIL does not make changes to any information on its own. It is only a custodian of information received from credit institutions. CIBIL is permitted to make changes to your credit information only when it is confirmed by the relevant loan provider(s).
Why doesn't CIBIL verify the information with consumers before updating the report?
CIBIL has the information of millions of individuals. It’s virtually impossible to verify the information of each individual. The ‘Dispute Process’ is provided to the consumer to help correct any discrepancies that may arise in their credit report exactly for this reason. Hence, it is recommended to review your credit report prior to submitting a loan application just to be sure that there are no errors on your credit report which may hamper your loan approval.
How do I get the results of my dispute request?
You will receive an email notification informing you of the results of the dispute request.
How long does it take to respond on a dispute request?
Dispute resolution takes approximately 30 days, subject to members responding to our dispute resolution raised.
What if I am not satisfied with the results of my dispute request?
You can initiate a dispute request again and we will re-verify it with the relevant loan providers. Alternatively, you can contact the loan providers yourself.
Account Detail
I am an authorized user, why is this account reflecting on my report? I am not liable to make payments on the account, it should not reflect on my report?
CIBIL will continue to report all information as submitted by the Credit Institutions. An authorized user means that you have been issued an “add-on” card by the credit card’s primary owner. It is important to note that the primary card holder is responsible for payments on charges incurred on both the primary and add-on credit cards issued. If the primary card holder defaults on any payments, this will be reflected as a default on the Credit Information Reports of both primary and add-on card holders.
