How Long Does CIBIL Keep Defaulted Credit Cards and Bank Loans on Your Credit Report?
Credit Reporting Terms in India
CIBIL, the Credit Information Bureau India Limited, maintains detailed records of default payments on credit cards and bank loans for a period of seven years from the date of default. This critical information is a significant factor in determining an individual’s credit score and their ability to secure new credit during this timeframe.
Understanding the Credit Default Duration
Prior to the seventh year, CIBIL records the default information prominently. For the first 2 years, this information is displayed on the Top Page/First Page of your CIBIL report. During this period, it is considered a recent financial crisis, leading to a higher likelihood of loan rejection. Starting from the third or fourth year, lenders might consider it less severe, but it could still result in higher interest rates or penalties.
After the seventh year, the defaulted information is still retained in the CIBIL records but is less prominent. However, it can be accessed upon request by lenders, potentially affecting future loan applications.
Contact Information for CIBIL Counseling
Rajkumar, CIBIL Counselor: If you require assistance in resolving settled accounts on your CIBIL report and need guidance on improving your credit score, you can contact Rajkumar at 9315912260.
The Impact of Credit History on Loan Applications
Since credit scores in India are subject to different rules and regulations compared to other regions like the US, credit bureaus like CIBIL are required to maintain and provide this historical information upon request by lenders. This means that the defaulted credit accounts will continue to be maintained and displayed regardless of their age.
For individuals dealing with defaulted accounts, it is advisable to:
Close all credit cards that you have defaulted on to limit new inquiries. Request a No Objection Certificate (NOC) from the bank. Wait at least a year before applying for any new loans to ensure the defaulted information has less impact on your credit score.Conclusion
The CIBIL defaulters list and credit reports retain information for a minimum of seven years, with the first two years being the most critical for loan applications. Understanding and managing this period is crucial for improving your credit score and securing future loans.