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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.
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.
My dad had taken a phone on me in 2016 and only made 1 payment of 7k now my cibil score is 407 and i have 74late payments and overdue of 12k does it clear if i pay 12k
Dear Spandhana,
Not imemdiately.
Dear sir,
I have used in March 2021 loan application where I got loan but that time I completed my loan amount but now a days overdues is showing so please suggest how to I remove this
Dear Gunendra,
Approach the bank for this.
Hi Basavaraj Tonagatti
My self Ashok, i had used the loan applications lot in 2019-2020,Now i have one issue with Credit score. As per my civil report i missed the payment of 99rs for one lender but as i remember i cleared all the loans and i am not aure that i took the loan from that platform which name is NDX P2P Private Limited and the Account Number also starts with “PL”.
HERE my issue is i can’t able to found this Loan application to clear it, if i wanted to transfer to account i don’t know the bank .
Is there any possibility to close / clear this amount to fix it.
Dear Derangula,
Contact the lender immediately.
Hello Sir,
I took a consumer durable loan for my friend in 2013 and after few payments I stopped payment and now I approached IDFC they denied to update cibil even for 28k I am paying full amount of 1.72l. They are saying we will close the account but cannot remove written off status. Is there any way we can approch consumer forum or banking ombudsman as we are paying the complete writeoff still they are not ready to change. What should be the right approach. Your help in this matter is highly appreciated.
Dear Sounak,
Sadly NO.
Hi Sir,
If I had 1 personal loan and 2 credit cards not paid for more than 2 years due to loss of job and financial issues. But now as things are back to normal, I want to foreclose everything. Will it improve my cibil score?
As banks are stating once they provide me Foreclosure letter it will improve.
Please assist me.
Dear Shivani,
Yes, but not instantly along with closure to increase rating, you have to use credit card frequently or go for loan and pay it without missing.
I had a personal loan in Aditya Birla. I have done BT from Yes Bank and closed the loan in the month of September 2021 also I have received the NOC from Aditya Birla. But in the Cibil report still Aditya Birla loan is reflecting as active. How to remove this from my Cibil report..?
Dear Mohan,
Either wait or approach the lender to rectify it.
Hi Baswaraj,
My CIBIL score drop from 699 (In March 2021) to 620 (April’2021) when it’s get updated.
as i am aware, i have not done any major changes in my transaction behavior, but i made some house loan application in the month of March, do you think it is the reason to drop my credit score from 699 to 620?
and my second question is, I was guarantee for one of the person loan (OD -Over draft) taken by my father, but unfortunately due to pandemic & with other reasons it was late payment of 60 days for the consecutive years 2019 and 2020, and it’s reflecting in my CIBIL, Now we are planning to clear the balance amount & close this account.
But i don’t want show this delay payment (60 days DPD) in my CIBIL-could you please suggest that how can remove this 60 days DPD in my CIBIL.
can i request bank to clear this in my CIBIL ?
or do i have any other option to proceed, so that the 60days DPD should not show in my CIBIL.
Thanks in advance.
Dear Siddu,
“do you think it is the reason to drop my credit score from 699 to 620?”-MAY BE.
How can you stay away from the delayed payment responsibility? It will obviously reflect in your score.
My cibil is above 720, but my account is updated as LSS since I paid my education loan after many years. How can I rectify it?
Dear Jennifer,
Approach the CIBIL and also bank in this regard.
How to approach CIBIL? I am not getting housing loan. Is there any bank who don’t mind this status
Dear Jennifer,
You will find the details on CIBIL website.
Hi,
Is there a grace period in case you have missed ur due date?
And in case where u had opted for moratorium but bank has still marked DPD 3 and is asking for proof, but I never received any proof. Have two cards from sbi and they say for Tata card I have first moratorium part and for prime I have second moratorium. But I has opted for both cards
And this 3 days DPD has effected my cibil I have been following up for more than 2 months is there anything else I can do?
Dear Manash,
There is no such grace period.
Hv taken a personal loan frm nbfc bank and the amount was very less 15k fr 3 months..The payment was made on time ..Nbfc company has sent a report to cibil tht the payment of 5k is overdue..i hv sent a email to nbfc company inspite of several reminders still no response..nw my cibil score hs dropped frm 740 to 680 ..kindly suggest me
Dear Nithya,
Follow as suggested during our call.
Hello I had a credit card bill of Rs 55.43, I had paid Rs 55 now for 43 paisa payment is reflected in my cibil as late paymnet what to do in this case
Dear Praveen,
Approach the issuing bank for rectification.
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
Dear Palash,
You can approach the banking ombudsman.
Hi ,
If missed emi is paid in one week after the emi date ,then how many point will come down in cibil
Dear Kedar,
Hard to say in terms of points.
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
Dear Nitin,
No option but to act wisely by using the credit cards to increase your score.
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
Dear Chanderdeep,
Your delayed payments might have reflected in your report.
I had make full payment. so it can be corrected in report and advise further.
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.
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
Chandu-First contact Kotak Bank and try to get the clearance certificate. Once it is ready, then you can approach CIBIL for the same.
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.
Miraj-Without giving your guarantee, how can a Bank show you? Touch with bank at first and try to resolve it at the earliest.
paying my gold loan but gold loan overdue show in cibil how to removed in cibil
Hardik-Check first with bank level and then approach CIBIL.
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 ?
Sunil-Whether you have NOC issued for those closed loans? If so, then contact CIBIL and let them know about your NOC.
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….
Sunil-Not sure..check with CIBIL.
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.
Biju-Refer above post and contact CIBIL.
hi Sir, present my cibil score is 650, . My personal loan was rejected due to my previous closed loans having DPDs . Last two year on words ,i don’t have any default payments in Two Wheeler loan & Business. Still banks rejected my personal loan due to closed personal loans showing DPD . please suggest how to over come this problem ?
Dear Lakshmi,
You have to increase your score patiently and it not happen instantly.
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…
Kavetha-Better to negotiate with bank.
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.
Tapas-It may be, better to correct it.
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.
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.
BLN-First check with your banks and discuss with them the dues and why such dues left (if you already paid).
I have clear my gold loan.. But shows in cibil… By showing closure of gold loan can I get business loan.
Shariq-It depends on your score. First concentrate on score.
How sir
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
Chandrika-How many days back you cleared the overdue?
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
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.
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
Satish-It is already explained above. Please go through above post.
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
Prayank-It will be there in report. But such past data may not be relevant to the lender NOW.
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
Abhay-NO.
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 ?
Arup-As long as you not defaulted any payment schedule, there will not be any impact on CIBIL score.
Thank you Basavaraj Tonagatti . Informative source about CIBIL report .
I did delay of 1 day while making credit card payment. Do my CIBIL score reduces?
Abhimanyu-It will but not to great extent.