Last Month aug-2021 I have taken Housing loan from SBI, that time my cibil score was 792 after one month, when I evaluated my cibil score on transunion site found 747 in 23-sep-2021 on 25-sep-2021 it was again downgraded to 724. I when observed found multiple disbursement entries as loan amount and sum of that disbursement as third loan sanctioned. In all there was mess in outstanding balance and duplicate entries shown as total outstanding. When disputed on 2nd saturday which is holday they corrected it on sunday but about score they says that, we shows score on the basis of CIR. I am not able to understand when loan taken and not even fully disbursed how can score of 792 come down to 724? there is no correct reply from cibil till today.
There are some basic facts about credit scores and credit bureaus like CIBIL you need to understand.

CIBIL credit score ranges between 300 and 900 and indicates the probability of default. There are four essential components with different weightage in a CIBIL credit score. Past performance has a weightage of 30%, while credit type/duration and leverage have a weightage of 25% each. Rest, 20% weightage, is based on other factors.

Credit institutions or banks/ lenders submit your credit account details along with your personal, contact, employment information like name, address, date of birth, PAN, telephone number, and income to credit bureaus. This data submission occurs on a periodic basis (like the 1st or 15th day of every month) as decided by the credit institutions or banks/ lenders and the credit bureau.

A credit bureau like CIBIL then creates your complete credit profile basis these details. This, in other words, means CIBIL cannot make any change directly to your CIBIL report. Once the change is authorised and provided by the concerned credit institution, CIBIL can update your credit report.

As you say, in August, when you obtained the housing loan, you had a score of 792 and it went down in September. This is not unusual. When a borrower takes a loan, he/she may have carried out some inquiries with different lenders, which gets reflected in the credit score. Further, you obtained the loan in August, and the lender may have sent this information to CIBIL in its cyclic updates. Plus, as you said, there are multiple entries of loan disbursement, which could also affect your credit score.

You need to find details from your CIBIL report, like the name of the credit institution that reported multiple loan disbursements against your name. You then need to raise a dispute with CIBIL via this link or directly approach the concerned credit institution.

Suppose the concerned credit institution does not resolve the dispute filed on the CIBIL site within 30 days. In that case, CIBIL uses an automated process where a daily reminder is sent to the bank / CI until the dispute is resolved.

Further, if you are not satisfied with the dispute resolution, you can contact the concerned credit institution directly. Alternatively, you can again initiate a dispute request with CIBIL, which will re-verify it with the relevant credit institution and update its records accordingly.
Our Experts

Sucheta Dalal Trustee - Moneylife Foundation

Abhay Datar Abhay Datar is a consumer activist and is also Member of the Managing Committee of Mumbai Grahak Panchayat (MGP). He was Treasurer at MGP for over two and a half years. After working at Bank of Baroda for about 29 years, he retired as IT Manager. After retirement, Mr Datar joined Consumer Guidance Cell of MGP in 2008 and solved many cases related to banking including online fraudulent transactions, misuse of credit cards and ATM cards. Also handled cases related to mobile and mediclaim. Mr Data

Suresh Prabhu Mr Prabhu retired as Senior Vice President from HDFC Bank

R Bhuvaneswari After serving Bank of Baroda for almost 40 years, Ms Bhuvaneshwari retired as Chief Manager in 2013.

Yogesh Sapkale Yogesh Sapkale is Deputy Editor of Moneylife and writes on finance, credit related issues

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