How many years CIBIL keep record of defaulters?

Hey,

I wanted to apply for a home loan but I was worried about having my name on the CIBIL defaulter list as I wasn’t able to make timely payments on previous loans. So, I asked my banker cousin about the process to check this list.

He told me that if you fail to make payment on time, defaults will be specified in the Days Past Due (DPD) section of the credit report. Your CIBIL score will start decreasing and lenders will refrain from approving your credit card or loan application. If you want to know whether your low credit score has put you on the ‘CIBIL Defaulters List’ then you should know that CIBIL doesn’t maintain any such list.

Defaulters are categorised into non-wilful and wilful by RBI. This has been done to differentiate between those who are actually in debt and those who willfully forgo their repayments. If you don’t want to be labelled as a ‘Defaulter’, you should improve your credit score. Following these tips will help you with the same:

• Clear off your dues

• Pay your bills timely

• Spend as per your credit limit

• Take loans one at a time

The CIBIL CIR (Credit Information Report) includes an individual’s details of the defaults. This record stays with CIBIL for a minimum period of seven years. The CIR doesn’t contain any records that are over 7 years old.

Now you know for how many years CIBIL keep record of defaulters.

How to get a loan application approved despite having a bad CIBIL score:

• Salary: No matter what your CIBIL score is, if your salary is good, you can get your loan application approved.

• CIBIL Score of the Spouse: If the CIBIL score of your spouse is good, then you can get your loan application approved.

• Credit Bodies for a Low CIBIL Score Holder: There are a few bodies that provide loans to people who have bad CIBIL scores. They might ask for higher interest rates on the repayment.

Read more:

I hope now you know everything about the CIBIL defaulter list.