An extract from the CIBIL website:

What do you do when you spot a mistake on your credit report?
Typically, you check your credit report when your loan gets rejected and the loan provider tells you it’s because of some information on your credit report. But there is no need to panic! Mistakes on a credit report can be easily corrected with the CIBIL’s help. All you need to do is:

a) Purchase your CIBIL credit report

b) Identify the erroneous information

c) Provide name, address, date of birth, an Control Number and the nature of the error on the credit bureau’s website. This is known as a ‘Dispute Request‘ in credit bureau parlance.

The Control Number is a unique 9-digit number found on the top right hand side of your CIBIL Credit Information Report and is generated every time a credit report is generated. It is very important to provide this number to the bureau, as it helps identify the CIBIL credit report on which you would like to ‘dispute’ information.

What kind of errors can occur in the CIBIL credit report?
Your Credit Information Report (credit report) is an important factor in the loan application process. Hence, mistakes on your credit report can result in reduced chances of a loan approval. It is very important for every credit active individual to understand the various types of common mistakes that can occur in their Credit Report.

• Inaccurate Current Balance or Amount Overdue When you have purchased your CIBIL credit report you may notice that your Current Balance or Amount Overdue may not be updated for your most recent payment. This will usually be the case if you have purchased your CIBIL credit report within 45 days of making a payment. Loan providers report information to CIBIL on a monthly basis, which would mean that the latest payment will not reflect on your CIBIL credit report.

An inaccurate Current Balance (especially on the high side) implies that you have more debt than you actually do while an “Amount Overdue” indicates that you are unable to service your existing loan obligations. Both are viewed negatively by loan providers and may affect the chances of getting your loan application approved.

• Incorrect Personal Details Credit information is submitted to CIBIL by various loan providers. Each loan provider submits your credit account along with your personal information such as name, address, date of birth, PAN Card Number and so on. CIBIL then uses the personal information to collate these details into a single credit report which provides your complete credit profile.

Ensure that you have provided accurate and updated details to your loan provider at the time of your loan application. In addition, every time your personal details change or are updated, you should inform your loan provider so that it is possible for it to make the necessary changes to its database.

• Ownership If you believe that either some of the personal details or one or more accounts on your credit report do not belong to you, you should write to the credit bureau. The credit bureau will look into the matter and help you update the information if required.

Overall, the best solution is to check your CIBIL credit report before you apply for a loan so that you know your loan provider is evaluating your loan application based on accurate data.

What does CIBIL do once I raise a Dispute Request?
Once you have raised a Dispute Request, the CIBIL checks whether all the requisite details have been provided. The request is then routed to the Dispute Resolution Department for Analysis. This is because one type of dispute request can be resolved by CIBIL itself. If the credit bureau is unable to resolve the request, it is routed to the relevant loan provider. Once the loan provider confirms that there is an error it will provide CIBIL with corrected data. CIBIL then updates the data and informs you as appropriate. Always remember, it is the duty of CIBIL to help you resolve your request.

Please remember that CIBIL does not make changes to any information on its own. It is only a custodian of information received from credit institutions. CIBIL is permitted to make changes to your credit information only when it is confirmed by the relevant loan provider(s).

Why doesn’t CIBIL verify the information with consumers before updating the report?
CIBIL has the information of millions of individuals. It’s virtually impossible to verify the information of each individual. The ‘Dispute Process’ is provided to the consumer to help correct any discrepancies that may arise in their credit report exactly for this reason. Hence, it is recommended to review your credit report prior to submitting a loan application just to be sure that there are no errors on your credit report which may hamper your loan approval.

How do I get the results of my dispute request?
You will receive an email notification informing you of the results of the dispute request.

Will I get an updated copy of my credit report when my dispute is resolved?
If you wish to have the updated CIBIL credit report, you can purchase it by clicking on the following link – Access your CIBIL Credit Report page.

How long does it take to respond on a dispute request?
Dispute resolution takes approximately 30 days, subject to members responding to our dispute resolution raised.

What if I am not satisfied with the results of my dispute request?
You can initiate a dispute request again and we will re-verify it with the relevant loan providers. Alternatively, you can contact the loan providers yourself.

Account Detail

I am an authorized user, why is this account reflecting on my report? I am not liable to make payments on the account, it should not reflect on my report?
CIBIL will continue to report all information as submitted by the Credit Institutions. An authorized user means that you have been issued an “add-on” card by the credit card’s primary owner. It is important to note that the primary card holder is responsible for payments on charges incurred on both the primary and add-on credit cards issued. If the primary card holder defaults on any payments, this will be reflected as a default on the Credit Information Reports of both primary and add-on card holders.

My account is closed, why is it still on my report?
As per the Credit Information Companies (Regulation) Act, 2005 governing Credit Information Companies, all accounts irrespective of their status (both Good Standing and Delinquent accounts) have to be maintained for a minimum period of 7 years from the date the account was last reported.

Source : http://goo.gl/BlNgyV