How to remove late payments from CIBIL report?

Having late payments from CIBIL report can prove detrimental to your credit score, and indeed is something that requires your attention. If not addressed in time it can snowball into a much bigger, more significant problem that not only affects your credit report but your overall financial fitness in the long run.late payments from CIBIL report

What is a CIBIL report?

A credit report provided by CIBIL, India’s oldest credit information company or bureau is known as the CIBIL score. It is the fundamental document lenders access when determining whether to extend any credit facilities to a borrower as it helps them gauge just how risky a customer may prove to be.

This report details information pertaining to any loans or credit cards that you have availed of, and your repayment behaviour is emphasised upon. Hence, ensuring that you do not have a pattern of late payment on your record is crucial.

While you can request for a copy of your CIBIL report, it is currently not offered as a free service.  Upon payment of a small fee, the report is made available by way of a quick, hassle-free process.

What is defined as a late payment?

Let us take an example – Borrower A has a credit card, which has a payment due date of the 25th of each month. When Borrower A makes a payment any day after the due date, the payment is considered to be a late payment. Simply put, therefore, any amount outstanding past the due date will be a late payment once received by the lender.

However, for the sake of categorization, lenders universally slot late payments into buckets, denoting how many days past due (or DPD) they are. These buckets are tagged at 30, 60, 90 and 120 days past the due date, and the more number of days past, that much more serious is your problem.

Impact of late payments on your CIBIL report

Sometimes, a person defaults on a loan or card payment simply because they have forgotten the due date. In most other cases however it is a willful default wherein the borrower does not intend to pay the amount owed to the lender.

Whatever be your reason for delaying a payment, know that your credit report does not consider the same, and every late payment is meticulously captured in the document. Of course, data received by bureaus is only that sent by its member institutions (banks and other financial institutions) and bureaus do not generate any information on their own. Hence, the moment your lender updates your account with a late payment remark, the same is transferred on to your bureau report.

Delaying a payment or missing it as a one-off instance will have a short-term, immediate impact on your CIBIL rating, it is true, but not as much as a regular history of payment defaults would. When you are 90 DPD, for example, your record is already tarnished, and building your score back up is a tedious exercise, one that takes time and patience. When you go as much as 90 days past the due date, it conveys to a lender that you have not only defaulted on payment once – and for a relatively long period – but are likely to do it again. In most cases as a global standard, late payments stay on record for a period of 7 years. Hence while erring may be simple, it is far more complex to rebuild your score.

How do you remove late payments from the CIBIL report?

In order to know how to clear CIBIL issues, you first need to identify them in your CIBIL report; hence calling for a copy is your first step in the process. Once received, go through it carefully and check for any errors or inaccurate information, which includes late payments.

If your late payment is on account of having forgotten the payment due date, you can request for the information to be struck off on the basis of goodwill, which is known as a ‘goodwill adjustment’ to lenders. If your credit history – and most importantly, your repayment track record – is otherwise good, a lender is likely to consider this favourably and delete this information from their records. Once they send this revised update to the bureau, your record is struck clean. Of course, this is purely at the discretion of the lender and your relationship with them, so even when you do send a letter, do not assume that it will be automatically done.

Further, if the information in your report is accurate, chances are that the lender is unwilling to strike it off your report without any assurance from your end. Therefore, some lenders globally request for the borrower to sign up with their banks to ensure auto-debit towards payment on the due date. On doing this, they are willing to consider erasing the late payment record. However, as with a goodwill letter, this depends solely upon the lender.

You can also negotiate with the lender with regards to making either a partial or full payment towards the amount outstanding, thereby not only reducing your debt burden but also having the late payment record struck off.

However, do keep in mind that a late payment is not looked upon favourably by any lender, and getting the remark struck off from your credit report can be an uphill task.

Follow up is the key

When you request for removal of late payment remarks from your report, follow up with the lender to keep periodically checking the status. Once the lender agrees to removal, it can take up to a month (or sometimes longer) to have your credit report updated with the new data. Hence, do call for your credit report and check the details yourself.

Note-This is a guest post written by Arun Ramamurthy, author of “Unlock the Power of Your Credit Score” : India’s first book on credit scores.

BasuNivesh in no way associated with the author or the organization he represents. Also, we not received any monetary benefit for publishing this post. This is purely based on knowledge sharing purpose.

47 Comments

  1. Hi Basavraj,

    Article is really informative, thanks.
    I applied for credit card 2 years back..i never received the delivery of card , neither have i activated or made any transaction from that card. Still the bank is now asking me to pay 3500rs to settle and clear off the due..my cibil score has been impacted..i feel since i never got card why should i pay..can you please advise

    Reply
  2. Hi ,
    If missed emi is paid in one week after the emi date ,then how many point will come down in cibil

    Reply
  3. Hi
    I had 2 late payments in a credit card which I didn’t used much because I forgot and later cleared with all applicable interest and late charges and closed the card. The cibil score dropped from 746 to 650 because of this. What can I do in this case

    Reply
    • Dear Nitin,
      No option but to act wisely by using the credit cards to increase your score.

      Reply
  4. I have taken two loan, one auto loan and another pesonel loan, some time payment hav delayed but paid all dues at finaly, kindly let me know whether my civil report may be corrected or delay past paymnet not effected in my civil score

    Reply
    • Dear Chanderdeep,
      Your delayed payments might have reflected in your report.

      Reply
      • I had make full payment. so it can be corrected in report and advise further.

        Reply
        • Dear Chanderdeep,
          Even if you settle also, such late payments definitely a negative impact on your score. Hence, to recover the score, you have to be very cautious and manage future transactions wisely.

          Reply
  5. MY NAME IS CHANDRA SEKHAR I HAVE PAID AMOUNT OF 18000/- BAJAJ FINANCE THIS LOAN HAS TAKE OVER TO KOTAK BANK I HAVE PAID AMOUNT BUT IT IS SHOWING IN CIBIL HOW CAN I REMOVE

    Reply
    • Chandu-First contact Kotak Bank and try to get the clearance certificate. Once it is ready, then you can approach CIBIL for the same.

      Reply
  6. Hi,
    I have applied for autoloan in Co operative bank. They rejected my application due to overdues are showing in my credit report. So i have checked my cibil report and came to know that one housing loan in which cibil report shows me as guaranteed is overduing since April 17. Now my concern is i am not Guaranteed in any housing loan bt it is showing so how do i process further to remove this housing loan? Please help me grt this out from my cibil.

    Reply
    • Miraj-Without giving your guarantee, how can a Bank show you? Touch with bank at first and try to resolve it at the earliest.

      Reply
  7. paying my gold loan but gold loan overdue show in cibil how to removed in cibil

    Reply
  8. hi Sir, present my cibil score is 772 , . My personal loan was rejected due to my previous closed loans having DPDs . Last one year on words ,i don’t have any default payments in Gold loan & credit cards. Still banks rejected my personal loan due to closed personal loans showing DPD . please suggest how to over come this problem ?

    Reply
    • Sunil-Whether you have NOC issued for those closed loans? If so, then contact CIBIL and let them know about your NOC.

      Reply
      • Sir, Yes, I send all NOC to Cibil and Bank. They updated in My CIBIL report closed status. But DPD ( Year 2015,16) shows 840 870 900 900 900 and 000. Is it possible to remove closed loan DPD after two years?
        Please suggest….

        Reply
  9. Hi

    I have taken one personal loan from and Credit Card from ICICI Bank in 2007. Due to some finanicial problem I cant make proper repayment. Finally in 2009 I made one time payment to ICICI bank to close my Personal Loan and and settled by credit card by paying settlement amount. I have received no dues certificate from bank for PL and CC. But still this record is visible in CIBIL report. How I can remove these records from my CBIL record.

    Reply
  10. Hi,

    I have a Citifinancial loan taken in 2005.. and it was written off in 2006…but it has been transferred to Kotak bank and they keep updating it on Cibil as written off, so it is affecting my score. I have spoken to Kotak bank, and got a written confirmation from them that, when i pay the agreed amount they will issue the NDC and also inform Cibil to change the records. But I just realized that the DPD fields for the last 36 months will remain the same.

    I have not made the payment yet. Can I ask them to update the DPD as 000 for the next 36 months(that is after I have made my payment) In this way the DPD will get phased out in 3 years. Is this something I can negotiate with the bank? Or do u have any other suggestions? Thanks…

    Reply
  11. Hi,

    My CIBIL score is 758. I had taken few loans in the past and had settled them. Now I have paid the complete outstanding amount. However in few of the occasions, they have indicated the dates under Days Past Due. However that is as of 2012. Do you think it will impact my Home Loan eligibility?

    Kindly suggest.

    Reply
  12. Hi, great article.
    Unfortunately I am also a victim of low cibil score and was looking measures to improve it. Will try the above actions. Thanks.

    Reply
  13. Dear sir,

    My CIBIL score is effected because of credit cards of two. Now I want to foreclose the credit cards.

    A card shows of an amount of current balance of Rs. 10,000=00, overdue of Rs. 10,000=00. So, how much I have to pay to remove my name from CIBIL.

    A other card shows of written of principle Rs. 30,000=00 overdue of Rs. 30,000=00. So, how much I have to pay to remove my name from CIBIL.

    Reply
    • BLN-First check with your banks and discuss with them the dues and why such dues left (if you already paid).

      Reply
  14. I have clear my gold loan.. But shows in cibil… By showing closure of gold loan can I get business loan.

    Reply
      • How sir

        Reply
  15. Hi Basawaraj
    I cleared my overdue with the bank and cibil is not yet updated how to update it. because of this other bank has rejected me from taking loan

    Reply
  16. Hi Baswaraj ,

    I am using only one credit card and not made any payment from the past 6 months. I am planning to go for a home loan now. I cleared all the outstanding amount by today and the respective bank promised me that will give NOC. so that i can go for a home loan on next month. i didn’t checked the cibil score yet. can you please clear me two things.
    Will i get loan sanctioned by using NOC?
    how many days will it take to update my info on cibil from now?(it says 45-60days)

    Thanks
    Satya

    Reply
    • Satya-Getting NOC not guarantee you that you get loan. Because CIBIL score depends on how accurate you are in repayment. None can say of how many days it takes to update. But if you found it is not updated, then you can contact CIBIL and let them update the same.

      Reply
  17. Sir I am satish last jan16 I forcloused my car loan. I have 6 delay pemints. I am facing loan rejections my cibel score is 756 . delay pemints on shows my cibel reports how to remove sir

    Reply
    • Satish-It is already explained above. Please go through above post.

      Reply
  18. Basavraj ji can you tell me, what happens after 7 years does that records got earsed or its their in Cibil report. Please enlighten on this issue thanking you.

    Regards
    Prayank Raj Sinh

    Reply
    • Prayank-It will be there in report. But such past data may not be relevant to the lender NOW.

      Reply
  19. Is there a method by which you can remove your previous applications for credit card ?

    I was once rejected for a credit card and after that I have been unable to get any new credit card issued.

    Regards

    Abhay

    Reply
  20. If I pay a part of my credit card due in a month and pay the remaining balance in the next month, will it affect my CIBIL Score ?

    Reply
    • Arup-As long as you not defaulted any payment schedule, there will not be any impact on CIBIL score.

      Reply
  21. Thank you Basavaraj Tonagatti . Informative source about CIBIL report .

    Reply
  22. I did delay of 1 day while making credit card payment. Do my CIBIL score reduces?

    Reply

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