How to complain in CIBIL for low CIBIL score?
Are you one of them, who thinks your CIBIL score is comparatively poor than others, even though you have an excellent repayment record? Actually, you are not alone. As a credit repair consultant, this is the most asked question from our customers. Mostly, they asked, “Can I complain in CIBIL for low CIBIL score?” The answer is yes. You can raise your concern to CIBIL authorities and get an explanation about your poor credit score.
Sometimes, many of us experience a sudden 30-40 point drop in CIBIL score, even after paying the loan dues regularly. In some points, you may feel your CIBIL score gets stuck for a long time and you can’t improve it anymore.
In rare instances, we’ve also noticed that an individual’s CIBIL score can drop by 20-30 points after correcting errors on their report, such as removing “written-off,” “suit filed,” or “settled” statuses from credit report.
Surprisingly, you might also face a slide dip in your CIBIL score even with the exact same data on your CIBIL report.
But what are the possible reasons in all the above-mentioned cases? Do you know how TransUnion CIBIL evaluates their consumers’ CIBIL score? Let’s begin the discussion with a basic understanding about CIBIL score and its calculating process.
What is CIBIL score?
CIBIL score is a three-digit numeric representation of an individual’s creditworthiness, derived by considering loan repayment history and credit behaviour, especially over the last 36 months.
It ranges from 300 to 900. Usually, a score of 750 and above is considered as an excellent credit score, it suggests that the borrower is quite prudent with his debts, and paying off his debts with no or very less defaults. Ultimately, it increases the chances of loan approval with additional benefits, like low interest rate, better repayment terms and conditions.
On the other hand, a low CIBIL score indicates a risky borrower, making lenders more hesitant to provide credit to such borrowers. However, the bottom line is that CIBIL score is a dynamic figure not static.
With proper knowledge about credit score and its calculating parameters, you are able to increase your CIBIL score gradually for future emergencies.
How does TransUnion CIBIL calculate your CIBIL score?
Did you know your CIBIL score isn’t calculated manually? Actually, TransUnion CIBIL evaluates your CIBIL score through a scoring algorithm by taking into account a large number of data points and parameters, which makes your CIBIL score more comprehensive with the current market trends. It’s completely a mathematical calculation, but TransUnion CIBIL doesn’t disclose the actual formula to their customers.
However, officially they provide an idea about the basic variables, based on which an individual’s CIBIL score is calculated. Each variable has a different weightage on the calculation. Those are respectively:
Payment history:
This is the most important factor in terms of determining your CIBIL score, with a weightage of around 30%. When you pay your loan EMIs and credit card bills on time, it demonstrates that you are a creditworthy borrower and adds a positive impact on your CIBIL score. On the other hand, delayed payments or missed payments accumulate overdue, Days Past Due (DPDs), and consequently damage your CIBIL score severely.
● Credit utilization:
This is the second most crucial parameter og the scoring algorithm with a weightage of around 20%. Credit Utilization refers to the usage amount of your credit card relative to the total credit limit given to you. Ideally, it should be less than 30%. Excessive use of your credit card shows your overspending behaviour and hurts your CIBIL score remarkably.
● Credit mix:
- Your CIBIL score also depends on the mixture of Secured loans (Home loan, Loan against property, Gold loan, Secured credit card, etc.) and unsecured loans (Personal loan, credit card) with a weightage of around 15%. But in most of the cases, we have seen that customers aren’t even aware of it. Nowadays, the maximum borrowers take app-based unsecured loans very frequently, which hampers their CIBIL score even after regular payments.
● Credit application:
When you apply for a loan or any other credit facility, it is considered as a hard enquiry and reported in your CIBIL report accordingly. A large number of credit applications in a short span indicates your credit-hungry behaviour and damages your CIBIL score temporarily. Therefore, always be cautious before submitting multiple loan applications.
● Other parameters:
In addition to this, there are some new variables incorporated with the scoring algorithm, such as
- Depth of Credit: It refers to the duration of your existing debt as calculated from the date when the account was opened. This means a long decent credit history helps you to boost your CIBIL score remarkably.
- Long-term trend of outstanding balances: Regular payments reduce your outstanding debt gradually, and that helps you to improve your CIBIL score over long periods.
- Transaction history on credit cards: To maintain a strong score, aim to pay your credit card bills in full before the due date each month.
- Ratio of actual repayment amount to the total amount due: Regular payments reduce your debt burden gradually, shows your responsible credit management behaviour.
- Number of opened and closed accounts: In some cases, we have seen for many customers that their CIBIL score gets freeze as they didn’t have any active loan accounts in their credit report. In such cases, try to take a new loan to rebuild your CIBIL score.
The process to complain in CIBIL for low CIBIL score:
Now, let’s address the main point: how can you raise your concern with CIBIL regarding a low CIBIL score? At this stage, you might wonder, if I file a complaint about my low credit score, will my CIBIL score improve? Actually, no.
We have already discussed that your CIBIL score is not manually calculated. Therefore, when you complain to CIBIL authorities about low CIBIL score they can’t improve your CIBIL score by themselves. Instead, they will review your entire CIBIL report and provide a detailed explanation of the factors affecting your score. They will also offer effective advice to help you improve your score over time.
- To make an online complain in CIBIL for low CIBIL score, first, you have to visit TransUnion CIBIL’s official website www.cibil.com. You will land on CIBIL’s Dashboard. On the topmost bar, you will find the option “Support” as highlighted in the below picture. Go to the “Support” option.
2. On the support page, several important quick links are mentioned there. Slightly, scroll down the page and you will get the option “Contact Us: CLICK HERE TO KNOW THE DETAILS”. Click on the yellow button to proceed next.
3. Next, the “Contact Us” page will open to you. In this page, you will find the option “Write To Us: Click Here”. Click on the link and proceed.
4. On the next page, you’ll initially see two options: “Consumer” and “Commercial”. TransUnion CIBIL categorizes its customers into these two groups. For individual credit histories, they generate a CIBIL Score (ranging from 300 to 900), while for company credit histories, they provide a CIBIL Rank.
If you are an individual with concerns about your CIBIL score, select the “Consumer” option. If you’re seeking clarification on a CIBIL Rank for a business, choose “Commercial”. The steps for both processes are quite similar.
In this article, we explain the steps specifically for the consumer credit score. So, choose the option “Consumer”.
5. Next, you’ll see four options, as shown in the image below. To complain in CIBIL for low CIBIL score, select “Score Related.” Then, from the five options provided, choose either “Why is my CIBIL score low?” or “Why is my new CIBIL score different from my old CIBIL score?” Choose the most suitable option as per your concern.
6. A new box will then appear, as shown in the image below. At the bottom, you’ll see an option labelled “Write to us by clicking here,” highlighted in the image. Click on this link to proceed further.
7. On the next page, you will get the option to put your Email Id and Service Request Number. But as you are going to complain for the first time, that’s why click on the “New Application”.
This is the all about the process to complain in CIBIL for low CIBIL score. Hope this will help you to get a clear understanding about CIBIL score and its complaint methods.