How to Remove Inquiry from CIBIL?

Your credit report plays a key role in determining your eligibility for loans and credit cards in India. It provides detailed insights into your credit history, outstanding debts, and loan enquiries. Loan enquiries are recorded whenever lenders review your credit report to assess your creditworthiness. However, multiple loan enquiries within a short period can negatively impact your credit score. 

This article explores loan enquiries, their impact on your credit report, and how you can remove them effectively. 

What is a Loan Enquiry in a CIBIL Report?

A loan enquiry, also called a credit enquiry, happens when a lender accesses your credit report to evaluate your creditworthiness. Here are the two types of loan enquiries:

1. Soft Enquiry:

• Soft enquiries are made by individuals or companies to gather information from your credit report.
• These enquiries are for informational purposes and do not affect your credit score.
• Lenders may conduct soft enquiries to assess your eligibility for pre-qualified loan offers.

2. Hard Enquiry:

• Hard enquiries occur when you apply for a loan or credit card.
• These enquiries are recorded on your credit report and may temporarily lower your credit score.

Remember, soft enquiries have no impact on your credit score, while hard enquiries may have a temporary negative effect.

When to Remove an Enquiry from CIBIL?

You cannot remove a legitimate credit enquiry (hard enquiry). Hard enquiries are recorded when you apply for a loan or a credit card, and they form part of your credit history. These enquiries remain on your credit report for up to two years.

However, under certain circumstances, removal is possible. If a lender or other entity accessed your credit report without your consent, or if the entry contains incorrect information (such as a wrong lender name, date, or duplicated entries due to a data mix-up), you can raise a dispute with TransUnion through its official website.

How to Remove a Loan Enquiry from the Credit Report?

Removing a loan enquiry from your credit report involves a few simple steps. While you cannot remove legitimate loan enquiries, you have options to dispute inaccurate or unauthorised ones. Here is what you can do:

1. Review your credit report:

• Obtain a copy of your CIBIL credit report.

• Go through the report carefully to identify the loan enquiries listed.

• Verify if all the enquiries are accurate and authorised.

2. Dispute inaccurate enquiries:

• If you find any loan enquiries that are incorrect or unauthorised, you can raise a dispute with CIBIL through their dispute resolution portal.

3. Timeframe for removal:

• If the disputed loan inquiry is confirmed to be inaccurate or unauthorized, CIBIL will remove it from your credit report within 30 days. 

• The removal of such inquiries may have a positive impact on your credit score. 

How to Avoid Hard Enquiries?

Hard enquiries can appear on your credit report for up to two years and may have a temporary negative effect on your credit score. Here are some practical ways to avoid them in future:

• Only submit credit applications when you truly need credit.
• Before formally applying, check for pre-qualified offers to understand your eligibility.
• Check your CIBIL report routinely to spot any unexpected hard enquiries.

5 Tips to Improve Your CIBIL Credit Score

While removing loan enquiries can help increase your CIBIL credit score, it is essential to follow good credit practices to maintain a healthy credit profile. Here are some valuable tips to improve your CIBIL credit score:

1. Pay your bills on time:

• Make timely payments for your credit card bills and loan EMIs.

• Timely payments demonstrate responsible financial behaviour and have a positive impact on your credit score.

2. Keep credit utilisation low:

• Aim to keep your credit card utilisation below 30% of the available limit.

• High credit utilisation indicates a higher credit risk and can negatively affect your credit score.

3. Maintain a diverse credit mix: 

• Having a mix of different types of credit, such as credit cards, loans, and mortgages, can be beneficial for your credit score.

• However, be cautious and avoid taking on excessive debt.

4. Limit new credit applications:

• Avoid applying for multiple loans or credit cards within a short period.

• Rapidly applying for credit can raise concerns about your creditworthiness.

• Wisely space out your credit applications to maintain a positive credit image.

5. Regularly monitor your credit report:

• Stay vigilant by reviewing your credit report periodically.

• This practice helps you identify any inaccuracies or discrepancies in your credit report.

• Promptly address any issues to ensure that your creditworthiness is accurately reflected.

By implementing these credit improvement strategies, you can enhance your CIBIL credit score and strengthen your financial standing.

Read Also: Tips to Improve CIBIL Score Above 800

How to Raise a Dispute with CIBIL to Remove a Loan Enquiry from Your Credit Report?

If you come across an inaccurate or unauthorized loan inquiry on your CIBIL credit report, you have the option to raise a dispute with CIBIL to rectify the issue. Follow these step-by-step guidelines to initiate the dispute resolution process: 

1. Obtain your credit report: 

• Request a copy of your CIBIL credit report from their official website or through authorized channels. 

• This report will provide you with the necessary information to identify the loan inquiry that you believe is incorrect or unauthorized. 

2. Identify the inaccurate loan inquiry: 

• Carefully examine your credit report to pinpoint the specific loan inquiry that you suspect to be inaccurate or unauthorized. 

• Pay attention to the details and ensure you have a clear understanding of the inquiry in question. 

3. Gather supporting documents: 

• Collect any relevant supporting documents or evidence that substantiate your claim of an inaccurate or unauthorized loan inquiry. 

• These documents can include application receipts, loan rejection letters, or any communication you may have had with the lender in question. 

 4. Raise a dispute with CIBIL: 

• Visit the CIBIL website or get in touch with their customer service to initiate the dispute resolution process. 

• Provide all the necessary information, including the details of the loan inquiry and the supporting documents you have gathered. 

• Clearly articulate your concerns and explain why you believe the inquiry is inaccurate or unauthorized. 

5. Follow up on the dispute: 

• CIBIL will undertake an investigation into your dispute and communicate the resolution within a period of 30 days. 

• If the inquiry is determined to be inaccurate or unauthorized, CIBIL will take the appropriate steps to remove it from your credit report. 

Remember to maintain documentation and keep track of all interactions and communications with CIBIL throughout the dispute resolution process. By following these steps and staying proactive, you can ensure that any inaccurate or unauthorized loan inquiries are rectified, and your credit report accurately reflects your creditworthiness. 

Conclusion

In conclusion, addressing inaccurate or unauthorised loan enquiries on your CIBIL credit report through the dispute resolution process with CIBIL can improve your credit score. Maintain a healthy credit profile by monitoring your report regularly, practising good credit habits, and promptly resolving any discrepancies. A strong credit score unlocks opportunities for favourable loan and credit card offers, supporting your financial aspirations.

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