How many years CIBIL keep record of defaulters?

The CIBIL keeps records of defaulters for up to 7 years. This is the standard duration followed by all major credit bureaus. In simple terms, whenever you miss a loan EMI, delay a credit card payment, or default on any credit obligation, that negative information gets recorded in your credit report. It remains visible to lenders for seven years from the date of the first or last default.

• This does not mean there is a permanent “defaulters list” maintained by CIBIL. Instead, all your credit behavior, including late payments, defaults, settlements, or write-offs, is stored in your credit report, which lenders check before approving loans.

• During these 7 years, the default can significantly reduce your CIBIL score. So, it will be harder to get loans, credit cards, or favorable interest rates, because banks see you as a higher-risk borrower.

• Even if you repay the loan later, the default history does not disappear immediately. It will remain in your report for the full 7-year period. Although its impact gradually reduces over time, if you maintain good financial discipline, such as paying EMIs on time and keeping your credit utilisation low.

After the 7 years is completed, the default entry is automatically removed from your credit report, and it no longer affects your credit score. However, your future creditworthiness will depend on how well you manage your finances during and after this period. This is all about how many years CIBIL keep record of defaulters.

Hey,

I wanted to apply for a home loan but I was worried about having my name on the CIBIL defaulter list as I wasn’t able to make timely payments on previous loans. So, I asked my banker cousin about the process to check this list.

He told me that if you fail to make payment on time, defaults will be specified in the Days Past Due (DPD) section of the credit report. Your CIBIL score will start decreasing and lenders will refrain from approving your credit card or loan application. If you want to know whether your low credit score has put you on the ‘CIBIL Defaulters List’ then you should know that CIBIL doesn’t maintain any such list.

Defaulters are categorised into non-wilful and wilful by RBI. This has been done to differentiate between those who are actually in debt and those who willfully forgo their repayments. If you don’t want to be labelled as a ‘Defaulter’, you should improve your credit score. Following these tips will help you with the same:

• Clear off your dues

• Pay your bills timely

• Spend as per your credit limit

• Take loans one at a time

The CIBIL CIR (Credit Information Report) includes an individual’s details of the defaults. This record stays with CIBIL for a minimum period of seven years. The CIR doesn’t contain any records that are over 7 years old.

Now you know for how many years CIBIL keep record of defaulters.

How to get a loan application approved despite having a bad CIBIL score:

• Salary: No matter what your CIBIL score is, if your salary is good, you can get your loan application approved.

• CIBIL Score of the Spouse: If the CIBIL score of your spouse is good, then you can get your loan application approved.

• Credit Bodies for a Low CIBIL Score Holder: There are a few bodies that provide loans to people who have bad CIBIL scores. They might ask for higher interest rates on the repayment.

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I hope now you know everything about the CIBIL defaulter list.