There is nothing called a Defaulter List or Negative List. Banks and credit institutions report repayment performance on loans and credit card dues to the Credit Information Companies. Such data will include both prompt payments made and defaulted payments made. Anyone who has ever taken a loan or a credit card gets reported to the credit bureau and whether they have made timely repayments . Delayed / defaulted payments reported, are likely to cause a negative impact on your credit score or credit rating.
Most people at point of time would have faced the problem of being denied a loan or a credit card on grounds of not being eligible due to a bad credit history. Often people don’t understand why their names are being listed in defaulters list and the ways to remove their names from defaulters list.
Credit Information Bureau of India Limited (CIBIL), has the credit information of all the borrowers. CIBIL contains the credit history of all the borrowers associated with the member banks or NBFC’s.
When you approach a bank or a NBFC for a loan, they first collect your credit information report to understand your credit history and judge your credit worthiness. And based on your credit worthiness, banks and NBFC’s decide whether to provide you a credit or not.
How do I know my name is in the defaulters list?
Every individual has the right to access their Credit Information Report (CIR). CIR is a factual report which gives an idea about your credit history of the borrower which is compiled from the information from the different credit lenders. This helps the banks to check and analyse whether he/she credit worthy and are not in the defaulters list.
What if my name is still in the defaulters list?
If you don’t wish to settle your dispute and remain in the defaulter list, this will stay in your credit history for 7 years and destroy your score. During this period no lender will come forward to give you credit. After 7 years you must start from the scratch and rebuild your credit score by paying your loans and credit card bills on time.
A few simple steps to improve your CIBIL score are:
- Never spend more than you earn: If your expenditure is more than your income, it might put you in debt, which eventually leads to low CIBIL score. This is one basic step for a better financial security.
- Pay your credit card bills and EMI’s on time: Paying all your bills and EMI’s on time is the best way to save and improve your CIBIL score. Make sure that you don’t opt for the minimum payment. This will get you into trouble and permanently effect your credit score.
- Save for future: Make sure you have enough savings in your bank account, which can help you reduce your financial burden by paying debts and bills.
A CIBIL score is a three digit number between 300 and 900 that gives potential lenders a quick idea of your loan
Credit repair involves rebuilding your credit health to a level where you become eligible for loans.
A CIBIL Score is an indicator of an individual’s credit worthiness. It impacts the individual’s ability to borrow
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Is 800 a good credit score? Yes. In fact, a credit score of 800 is very good! Only a small percentage of people reach,
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First, it is important to note that there is no ‘Defaulters List’ that is maintained or circulated by CIBIL or any of the other
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A poor CIBIL score can increase your financial problems and make it difficult to access credit, whether as a loan or credit.
One common worry that runs through your mind after you have made a credit card settlement is,