SBI Card customers are seeing their CIBIL scores fall by 50 to 70 points due to incorrect 'overdue' labels on July statements. This reporting error affects even those who paid on time, potentially impacting their future ability to secure loans or credit facilities. Affected users are advised to verify their credit reports and contact the company immediately to resolve these discrepancies.
SBI Card customers have reported a widespread issue where their credit reports show incorrect 'overdue' statuses on their July billing statements. This technical error is causing unexpected drops in CIBIL scores for many cardholders, with some users reporting declines between 50 and 70 points. The drop is particularly concerning for those who have maintained a history of timely payments.
Nature of the Reporting Error
The issue stems from how billing data is being communicated to credit bureaus. Reports indicate that the system is incorrectly tagging minimum payments as 'overdue' even before the customer's actual payment deadline has passed. In some cases, only the minimum amount due is flagged, which creates confusion and triggers a negative impact on the individual's credit profile. The error appears to be affecting users regardless of their actual payment status or history.
Financial Impact and Borrower Risk
A credit score is a vital number used by banks and financial institutions to decide if they should approve a loan or a credit card application. When a score falls sharply, it can lead to immediate complications for a borrower. This includes potential rejection of new loan requests, delays in processing applications, or being offered loans at higher interest rates due to a falsely lower credit score. For someone planning to apply for a home loan, car loan, or personal credit in the near term, this error could be a significant obstacle.
Steps for Affected Customers
For investors and customers, the primary concern is the time it takes to correct these errors. The standard process for fixing a credit report involves raising a formal dispute with the credit bureau and notifying the lender. SBI Card users are encouraged to log in to their official credit bureau account and check their latest report immediately. If a discrepancy is found, it is necessary to gather payment receipts and the relevant credit card statement as proof. Users should then reach out to the SBI Card customer support team or escalate the matter to the company's nodal officer to ensure the corrected data is sent to the credit bureau. Tracking the status of this correction will be important until the score is restored to its accurate level.