Your CIBIL score, a numeric representation of your creditworthiness, plays a significant role in this process. However, each time a financial institution checks your credit report in response to your loan or credit card application, a hard inquiry is recorded, potentially impacting your score negatively. If you’ve noticed an unusual number of inquiries or some that you don’t recognise, you might be wondering how to remove inquiry from CIBIL. 

Removing these inquiries can help enhance your CIBIL score, making it easier for you to get approval for credit in the future. This guide aims to provide you with detailed insights and actionable steps to manage and remove unnecessary inquiries from your CIBIL report, thus safeguarding your financial health and ensuring you remain an attractive candidate to lenders. Also, if you want to learn about credit counselling, click on the link now!

What is a CIBIL inquiry?

A CIBIL inquiry occurs when a lender requests your credit report from CIBIL (Credit Information Bureau (India) Limited) to evaluate your creditworthiness. These inquiries are of two types: hard and soft. Hard inquiries can affect your credit score, especially if there are too many in a short period. In contrast, soft inquiries do not impact your score.

Impact of Hard Inquiries on Your Credit Score

While a single inquiry might only slightly impact your credit score, multiple inquiries in a short span can be detrimental. This is because lenders perceive this as credit hunger, indicating financial instability.

How do I remove inquiries from CIBIL?

To remove inquiries from your CIBIL report, start by obtaining your credit report to review the inquiries listed. Identify any unauthorised or incorrect inquiries. Then, file a dispute with CIBIL by filling out their dispute resolution form online and providing the necessary documentation to support your claim. CIBIL will investigate the dispute, and if found valid, the unauthorised inquiries will be removed. This process can help correct your report and potentially improving your credit score.

Step 1: Obtain Your CIBIL Report

Firstly, obtain a copy of your CIBIL report to review all the inquiries listed. You’re entitled to one free report a year, which can be requested from the CIBIL website.

Step 2: Identify unauthorised or Incorrect Inquiries

Carefully examine the report to identify any inquiries that were made without your permission or by mistake.

Step 3: Dispute Unauthorised  Inquiries

If you find unauthorised inquiries, you can raise a dispute with CIBIL. This involves filling out a dispute resolution form available on their website and providing the necessary documentation to prove the inquiry was unauthorised.

Legal Considerations

Understand the legal framework surrounding credit reports and inquiries in India. The Credit Information Companies (Regulation) Act, 2005, and the Reserve Bank of India guidelines provide a basis for disputing inaccuracies in your credit report, including unauthorised inquiries.

Step 4: Follow Up on Your Dispute

After submitting your dispute, regularly follow up with CIBIL and the concerned lender to ensure the inquiry is removed. This process may take a few weeks to a couple of months.

Step 5: Prevent Future Unauthorised Inquiries

To prevent future unauthorised inquiries, be cautious about where and how often you apply for credit. Read the application forms carefully and understand the terms and conditions to ensure that you are not inadvertently consenting to a hard inquiry.

Maintaining a Healthy Credit Score

Beyond managing inquiries, there are several strategies to maintain or improve your CIBIL score

Timely payment of loans and credit card bills

Keeping the credit utilisation ratio low

Balancing secured and unsecured loans

Regularly monitor your credit report for any discrepancies

FAQs: About “How to remove inquiry from CIBIL”

1. What is a CIBIL inquiry?

A CIBIL inquiry occurs when a lender requests your credit report from CIBIL (Credit Information Bureau (India) Limited) to evaluate your creditworthiness.

2. How do I remove inquiries from CIBIL?

To remove inquiries from your CIBIL report, start by obtaining your credit report to review the inquiries listed. Identify any unauthorised or incorrect inquiries. Then, file a dispute with CIBIL by filling out their dispute resolution form online and providing the necessary documentation to support your claim. CIBIL will investigate the dispute, and if found valid, the unauthorised inquiries will be removed.

3. What are the legal considerations when disputing inquiries?

Understand the legal framework surrounding credit reports and inquiries in India. The Credit Information Companies (Regulation) Act, 2005, and the Reserve Bank of India guidelines provide a basis for disputing inaccuracies in your credit report, including unauthorised inquiries.