How Can I Remove Loan Inquiry From Cibil Credit Report

Get the know-how to remove loan inquiries from CIBIL credit reports. Follow the steps and keep in mind the process to remove inquiries impacting your credit score.” Is this what you were looking for?

7 Sep,2023 12:40 IST 1971
How Can I Remove Loan Inquiry From Cibil Credit Report

The ability of a borrower to leverage credit and loans from registered financial institutions and banks depends to a large extent on their credit score. The credit score is very often referred to as CIBIL Score in India. CIBIL is one of the four credit rating agencies authorised to operate in India. Your CIBIL credit report, or any credit report, for that matter is therefore extremely important if you need to approach a lender for a loan or a credit card. This is especially so in the case of unsecured loans like Personal Loans and products like credit cards. In general, you require a credit score of 750 or more in order to take an instant loan and loans without any collateral. Getting an instant loan for low CIBIL score rated individuals is extremely difficult. Usually those with low CIBIL scores need to apply with a co-borrower or pledge an asset as a collateral. In addition, the lower your credit score, the higher is the interest that lenders will charge you on their loan products.

It is therefore important to check your credit score from time to time to ensure that your credit score is an accurate representation of your credit worthiness, even though you may not be contemplating a loan. This is so because improving your credit score takes time. So does rectification of any errors in your credit report.

Factors Affecting Credit Score:

Your credit score is affected by the following:

  • Regularity of loan and credit repayments
  • Debt to Income (DTI) ratio
  • Hard Enquiries against your credit report

This blog especially looks into the aspect of hard enquiries against your credit report and whether it is possible to remove them. To begin with, a hard enquiry is when a lender makes an enquiry regarding credit score, your debt levels and repayment patterns from the credit rating agencies. This happens when you apply to a lender for a loan or a credit card on your own steam. This is done to assess the level of risk involved in giving you a loan or a credit card. The lower your credit score, the higher is the risk assessment. A hard enquiry is to be distinguished from a soft enquiry. The latter is generated when you check your own credit score, or when lenders ask for a broad overview of your credit report as they may do to shortlist potential customers to whom they can offer credit cards and loan products on their own accord. While a hard enquiry impacts your credit score negatively, a soft enquiry does not have any effect on your CIBIL Score.

Removal Of Loan Enquiry From CIBIL Credit Report:

There are only two occasions when you can remove the trace of a hard enquiry by a lender from your credit report. The first is if there is an enquiry against your credit report without authorisation by a lender, i.e., if a lender has made such an enquiry without you having approached it for a loan. The second is if there is a mistake during data entry on the part of the credit rating agency.

If you do notice such an error on your credit report, you should write to the credit rating agency as soon as possible pointing out the error and asking for a rectification. If the error is from the credit rating agency’s side, rectification will be a quick process. However, in case of an unauthorised enquiry by a lender, the credit rating bureau will have to write to the lender to seek a clarification before making any changes in your credit report. This process could take up to 45 days or more.

To raise a request for removal of an erroneous hard enquiry from your CIBIL report, you need to visit the “Dispute Resolution” section of the company’s official website and click on the “Consumer Dispute Resolution” tab and follow the instructions given.

However, if the loan enquiry is genuine, the enquiry will be reflected on your report for at least a year. Your credit score is also lowered and remains affected for at least two years. In such a case, the only way to counter the low score is through extremely credit-worthy behaviour such as paying EMIs and credit card bills on time, and keeping your debt-to-income ratio within 30%. By doing this consistently, you should be able to pull your score up to an acceptable level over time.

How To Check CIBIL Credit Reports?

By now the question uppermost in your mind must be “How to check my CIBIL score free of charge?”. To check your CIBIL Credit Report, you can visit the website of the company at https://www.cibil.com/freecibilscore. Click on the tab “Get Your Free CIBIL Score”, and fill in the details required. Most credit ratings bureaus in India offer this as a free service. You could check their website for your report and register any grievances you have if you feel your credit report and score is erroneous.

Thus, if you are looking for a loan, do check your CIBIL score first. If you have a score of 700 or more, you can apply to IIFL for a personal loan or business loan without any collateral. The process is online and once you have submitted the application and the supporting documents, review of your application will take place within one working day.

Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.

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