How to remove Loan Inquiry from Cibil Credit Report?

• cholamandalam
• November 1, 2023November 23, 2023
• 22

If you need to approach a lender for a loan or credit card, your CIBIL credit report or any credit report, for that matter is crucial. This is particularly true for credit cards and unsecured loans like personal loans. Generally speaking, to qualify for a fast loan and a loan without collateral, you need to have a credit score of 750 or above. It is very difficult for people with poor CIBIL scores to get a quick loan. Those with poor CIBIL scores typically have to apply jointly with a co-borrower or provide collateral in the form of an asset. Additionally, lenders will charge you a greater interest rate on their loan products. Even if you are not considering a loan, it is still vital to periodically check your credit score to make sure it accurately reflects your creditworthiness. Having a loan inquiry on your credit report gives away a wrong impression.

What is a Loan Enquiry?

When a lender inquires with credit rating agencies about your credit score, debt amounts, and repayment history, this is known as a hard inquiry. This occurs when you voluntarily apply for a credit card or loan from a lender. This is done to determine how much danger there is in granting you a credit card or loan. The risk assessment increases with a lower credit score. It is important to distinguish between a hard and a soft inquiry. The latter is produced when you check your credit score or when lenders request a comprehensive copy of your credit report, which they may do to compile a shortlist of possible clients to whom they may independently extend credit card and loan offers. A soft inquiry has no bearing on your CIBIL Score; however, a hard inquiry lowers your credit score.

How to remove Loan Enquiry from CIBIL Credit Report?

You can only get rid of a lender’s hard inquiry trace from your credit report in two different situations. The first is if a lender has done an inquiry against your credit record without your consent, meaning that the inquiry has been made without your having applied for a loan from the lender. The second scenario is if the credit rating agency makes a mistake when entering data.

If you do come across such a mistake on your credit report, you should contact the credit rating company right away to report the issue and request a correction. If there is an error by the credit rating agency, it will be corrected promptly. But before making any modifications to your credit report, the credit rating agency must write to the lender in the event of an unauthorized inquiry by the lender to request an explanation. This process may require forty-five days or longer.

You must go to the company’s official website, navigate to the “Dispute Resolution” section, pick the “Consumer Dispute Resolution” link, and follow the instructions to file a request to have an incorrect hard inquiry removed from your CIBIL report.

If the loan inquiry is legitimate, it will be on your record for a minimum of one year. Additionally, your credit score will drop, and this effect lasts for at least two years. The only method to raise your credit score in this situation is to engage in very credit-worthy behaviour, such as making on-time credit card and EMI payments and maintaining a debt-to-income ratio of no more than 30%. You will be able to eventually raise your score to a respectable level by doing this regularly.