Do I Need a Loan Settlement Lawyer? Pros and Cons Explained
August 5, 2025
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“Did you know that nearly 30% of credit reports contain errors? Inaccuracies in your CIBIL report can significantly impact your financial health, making it crucial to understand how to resolve them.”
If you find an error in your CIBIL credit report, you can fix it by following the CIBIL Dispute Resolution process. Start by logging into your CIBIL account and identifying the incorrect information. Next, submit an online dispute by filling out the dispute resolution form, clearly explaining the error. CIBIL will investigate and verify the disputed item with the relevant financial institution. This process may take up to 30 days, after which CIBIL will update your report if the error is confirmed. You can track the status of your dispute through your CIBIL account.
SettleMyLoan is a financial advisory and debt settlement agency that facilitates debt settlement and encourages adoption of proper debt management measures by its clients.
The CIBIL (Credit Information Bureau (India) Limited) Dispute Resolution process is initiated for several reasons related to inaccuracies or discrepancies in an individual’s credit report. Common reasons include:
Initiating a CIBIL dispute resolution process allows individuals to correct these inaccuracies, ensuring their credit report reflects their true credit history. This is crucial as the credit report directly impacts an individual’s credit score and their ability to obtain loans, credit cards, and other financial products.
Disputing inaccuracies in your CIBIL (Credit Information Bureau (India) Limited) report is essential for maintaining a healthy credit score. Here’s what you can dispute in each section of your CIBIL report during a CIBIL Dispute Resolution process:
Raising a CIBIL dispute involves several steps to ensure that any errors in your credit report are corrected. Here’s a step-by-step guide:
By following these steps, you can ensure that any inaccuracies in your CIBIL report are addressed and corrected promptly.
In conclusion, resolving a CIBIL dispute can be a straightforward process for you. By carefully gathering and submitting all necessary documents, and following up with CIBIL as required, you can ensure that any inaccuracies in your credit report are addressed. It is important to remain patient and persistent, as the resolution process may take some time. By taking these steps, you can improve your credit score and maintain a more accurate and positive credit history.
SettleMyLoan is a well-known financial advisory and debt settlement company which provides settlement counseling legal and financial advice to clients.
A CIBIL dispute normally takes maximum 30 days since you have made the complaint to be processed. During this period, CIBIL can even inquire on the discrepancy through contacting the concerned financial institution where the information was contributed. Although in the majority of cases, a decision can be reached during this period, it may take a bit more time in complex cases. Through the CIBIL portal, you will normally be able to check the status of your dispute online.
Negative records such as defaults, settlements, written-off accounts in India as a rule tends to remain in your cibil report approximately 7 years after the last activity or reported defaulted. Although the influence of these older entries decreases as time passes and they finally do fall off, your credit history is not cleaned or wiped out. Credit positivity on the post-negative incident is essential to do in reaching an active score improvement.
After 7 years, a defaulter can borrow once again since adverse reports normally expire after the said period of time. Nonetheless, it cannot be just a matter of waiting out the 7 years. Lenders will also examine how you have behaved in the recent past on credit. To combat this, focus on establishing a good credit history which can be done by paying successfully on any new credit, such as secured credit cards within the post-default period.
Once you have filed a credit dispute with CIBIL, the entry that you are disputing will be tagged as “under dispute.” CIBIL then passes on the information to the respective financial institution in order to be verified. The institution is given a specific time frame (normally 21 days) to reply. In the case of an error being confirmed, CIBIL reacts by their updating your report and the tag of “under dispute” label is eliminated. When the error is not confirmed, it can bring closure of the dispute without the alteration.
When your CIBIL status is marked as settled it means that you paid less than what you were to pay and may be marked as such in your report anywhere up to 7 years. To get it possibly upgraded or eradicated earlier, you would normally be forced to pay the outstanding sum to the lender in full. After payment, you should receive a “No Objection Certificate” (NOC) and forward it to CIBIL asking them to change the status which is to be “settled” to “closed.” This could reflect well on your credit score in the end.
We can negotiate your settlement so that you become debt free, in most cases without it affecting your credit score.