What is Defaulter or Negative List?

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.

CIBIL™ is one of the four authorized credit bureaus in India, the others being Equifax, CRIF High Mark and Experian. 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.