Fraudulent Ways You Should Avoid while Repairing Your CIBIL Score

Fraudulent Ways You Should Avoid while Repairing Your CIBIL Score: A CIBIL score represents the financial identity of an individual or a business. With a high credit score, you can easily avail a loan and the interest rates on repayments are low.

If you have a low credit score then you will be charged with a much higher rate of interest due to the higher risk associated with it. Hence it is necessary to do a CIBIL score check once in a while. Many banks and NBFCs also provide free CIBIL report checks to help get a better understanding of your eligibility. Even with a low credit score, you can still apply for a loan by rebuilding your score. However, the rebuilding process might require time and patience.

Whereas the wrong solution to repair your CIBIL score is by taking a shortcut. You should never take shortcuts as you can land in trouble. Therefore, you cannot repair your score overnight in a rightful manner. It might take you months to repair the CIBIL Score. There are many agencies that promise to repair your scores within months. But most of these agencies repair CIBIL scores through fraudulent ways. It is best to avoid such traps and differentiate between the right and wrong way to build your score again.

Wrong Updation of personal details

If a financial institution makes changes in your personal details intentionally or unintentionally say the addition of an alphabet or a typo error in your name or Father’s name. This error changes everything and creates a unique combination of Name, Father’s Name and DOB. This wrong updation will help to repair CIBIL Score and cannot be termed as fraudulent as it was because of error/mistake by NBFC. The individual can easily take advantage of this error/mistake. Once the account is free of default/delayed payment remarks the CIBIL Score will gradually increase.

Wrong mapping / mistaken identity

Besides PAN there are other documents like passport number, driving license number, etc mapped to your CIBIL account. If any of the above document details has an error or is mistakenly switched to someone else’s details you might have to face major consequences in availing a personal loan, business loan or home loan.

For example, if you apply for a loan and despite having a good CIBIL score got rejected only to find out later that the financial institution wrongly mapped passport no of some other individuals with the same name and father’s name to your account. This will create a lot of havoc as you are simply being denied your right to avail a loan and someone else gets to make use of the opportunity.  Unfortunately, it’s hard to prove whether this error/mistake was made unintentionally or through fraudulent ways. Someone may misuse this loophole pretty easily to repair their CIBIL Score.

New PAN / Change in PAN details

The easiest way to clean or refresh the CIBIL Score is by changing your PAN details. The Name of an Individual, Father’s Name and Date of Birth of an individual is a unique combination. The possibility of all three data points being the same for 2 different individuals is a rare possibility but not impossible. The same combination is used by the financial institutions to identify an individual. Any change in this combination will be considered fraud.

Moreover, this situation is quite convenient to repair the CIBIL Score. For instance, if your father’s name/initials are included in the PAN then based on that you can change your bank account and other documents. The new combination of Name, Father’s Name and DOB is now unique and ready to start with a fresh credit life.  Note that it is illegal to hold more than one PAN and in case of error or mistake in PAN details should be brought to the notice of the income tax department.