How To Remove Enquiry from CIBIL

1. Identifying Unauthorized Inquiry: If you notice a hard inquiry on your CIBIL report that seems unauthorized, it could be a potential fraud or error. You have the right to raise a dispute to have it removed. Here are the steps to raise a dispute: 

• Visit the official CIBIL website. 

• Create an account or log in if you already have one. 

• Access your credit report from the dashboard. 

• Navigate to "Enquiry Information" under "Credit Report" to view all inquiries. 

• Identify unauthorized inquiries and click on the "Raise a Query" button. 

• Click "Dispute an Item". 

• Select "Enquiry Information." 

• Check the boxes next to the unauthorized inquiries, confirm each dispute, and click "Yes." 

• Submit the dispute and review the summary of raised disputes. 

1. Dispute Resolution: To resolve the dispute, CIBIL will contact the relevant bank or NBFC (Non-Banking Financial Corporation) and the process usually takes 45-50 days. 

Note: Only report unauthorized inquiries as for a loan application, if the lender checks your CIBIL Report, it cannot be disputed. 

How to Remove Negative Accounts from CIBIL Report? 

To remove negative accounts from your CIBIL report, follow the steps mentioned below: 

1. Goodwill Request: 

1. If you have cleared your loan but missed payments, your lender may have reported you negatively. 

1. Send a polite letter to the lender explaining the delay after clearing the dues and request them to report you favorably, as a loyal customer. 

1. Raise a Dispute: 

1. Raise a dispute by following the process described earlier, if there is an error by the lender. 

1. Disputes may take 45-50 days for resolution. 

1. Wait It Out: 

1. If nothing else works, you can wait for the negative accounts to naturally stop affecting your credit score, which typically takes 1-2 years. 

1. To improve your score continue making timely payments during this period. 

Impact of a Hard Inquiry on Credit Score 

The impact of hard inquiry on credit score are mentioned below: 

1. Short-term Dip: A hard inquiry may cause a small dip in the credit score, usually under 5 points, as it indicates you are seeking new credit, potentially signaling a higher borrowing risk. 

1. Temporary Impact: Responsible credit habits will help your score recover as the negative effect of a hard inquiry lasts about a year. 

1. Multiple Inquiries: Multiple inquiries in a short period can raise concerns for lenders, possibly leading to a more significant drop in your score. 

Does a Credit Score Drop After a Hard Inquiry? 

Yes, hard inquiry results in a drop in the credit score and the reasons behind it are given below: 

1. Temporary Decrease in Credit Score: 

1. Causes temporarily drop in credit score as lenders assess your financial history and ability to repay loans. 

1. Increases the perceived risk for lenders as the inquiry suggests you are seeking new credit. 

1. Short-term Impact: 

1. The impact of a hard inquiry is short-lived, typically considered only within a year. 

1. A single inquiry does not cause a long-term drop, unlike multiple inquiries in a short time that leads to financial distress, leading to a larger decline. 

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

The steps to raise dispute with CIBIL if you suspect an unauthorized loan inquiry on your CIBIL report are given below: 

1. Obtain your CIBIL report and identify the inquiry in question. 

1. Collect all the documents such as loan rejection letters for support. 

1. Navigate to the "Dispute Resolution" section by visiting the CIBIL’s website. 

1. Provide the details and any necessary proof to initiate a dispute regarding the inquiry. 

1. It takes up to 45 days for CIBIL to contact the lender to verify the inquiry. 

Tips to Minimise the Chance of Decreasing Credit Score After a Loan Inquiry 

To decrease the chance of drop in the credit score after loan inquiry, remember the points mentioned below: 

1. Space Out Inquiries: To prevent raising red flags for lenders, avoid submitting multiple loan applications in a brief period (a few months). 

1. Pre-qualify Instead: Involve soft inquiries by using pre-qualification options from lenders that do not impact your credit score, helping you assess loan eligibility. 

1. Shop Around Strategically: To limit hard inquiries, compare rates and terms from various lenders within a short timeframe (weeks, not months). 

1. Maintain Good Credit Habits: Strengthen your score and reduce the impact of a hard inquiry by focusing on timely payments, low credit utilization, and a healthy credit mix.