CIBIL score is the utmost important thing in order to get a loan and a credit card. If your CIBIL score is pretty high, then you easily get loan or credit card approval with higher amount limits. But this score also fluctuates a lot, only if you don’t pay attention to your dues and repayments. When you don’t pay the timely installments, your credit score dips by a few points. And if you don’t repay the installments as you should, your name may show up in the Defaulter List.
Since every bank and non-banking financial entity always checks one’s CIBIL score before lending money, that’s why if your name is on the defaulter list, your loan and credit card application will not be approved. It could be that there was some emergency situation or any other personal issue that’s why your name ended up on the defaulter list. And that is why many people search for how to remove their name from the defaulter list. Sometimes it happens when you have already done the settlement but your name is still showing up in the defaulter list and CIBIL status hasn’t changed. But don’t you worry now, below we will be talking about how you can remove your name from CIBIL after settlement. So stay tuned for that.
Ways To Remove Name From Cibil After Settlement
There is no specific way like you submit a form somewhere or apply on a portal online in order to remove your name from CIBIL after settlement. It doesn’t work that way. However, in the situations mentioned below, you can remove your name from the defaulter list.
- If the lender has already filed a lawsuit against you, then you must repay the full amount with interest and ask the lender to remove your name from the CIBIL or defaulter list. Since now you have a lawsuit in your name, you’re bound to repay the total amount, and only then the case can be withdrawn by the lender.
- Before the lender files a lawsuit against you, it would be better if you negotiate and both come to a conclusion. Sometimes if you don’t have the full amount to pay, you can pay a percentage of the total amount and ask them to remove your name from the CIBIL defaulter list. It doesn’t work all the time, but if you assure the lender, it is possible.
How To Avoid Getting Your Name On The CIBIL Defaulter List?
Of course, if your name shows up on the CIBIL defaulter list, your chances of getting any financial help or loan from any financial institute are close to zero. Therefore you must maintain your finances well and repay the installments on time. This will help you maintain a good or high CIBIL credit score, which will help you get approval for higher loan amounts in the future. Along with that, if you don’t want to end up on the defaulter list, then it is better to review your CIBIL credit profile regularly. Sometimes it happens when your CIBIL score is on a decline, but you don’t know it yet because you haven’t checked your CIBIL credit profile in a while. And that’s why you don’t take timely actions to stabilize it.
What To Do In Case Wrong Loan Settlement Status Is Showing Up?
It could be that your name is showing up on the CIBIL defaulter list because you have been a victim of fraud. It is a sad reality, but this happens to hundreds and thousands of people in India. If that’s the case, and you notice your name on the defaulter list, and your CIBIL score is on a continuous decline without you doing anything. Then you should Raise a Dispute by going to the official CIBIL portal.