How to Remove Enquiry from CIBIL Report

Your CIBIL report plays a crucial role in your financial life. It reflects your creditworthiness and can affect your ability to obtain loans and credit cards. One aspect of your CIBIL report that deserves attention is the section on "Enquiries." In this beginner-friendly guide, we will explain what credit enquiries are, why they matter for your credit score, and how you can remove them from your CIBIL report.

Understanding Credit Enquiries

Credit enquiries are records of when a lender or financial institution checks your credit report. In general, there are two sorts of inquiries: hard inquiries and soft inquiries.

Hard Enquiries: When you apply for a new credit card, loan, or mortgage, you will encounter these. Lenders will seek a copy of your credit report to determine your creditworthiness.

Soft Enquiries: These are usually made by companies for promotional purposes or by you checking your own credit report. Therefore, it will not be impacted by soft enquiries.

Why Enquiries Matter

Enquiries matter because they give potential lenders insight into your borrowing habits. A high number of hard enquiries on your CIBIL report may signal financial distress or an increased risk to lenders. This can make it harder for you to secure new credit or get favourable interest rates.

Now, let's dive into the steps to remove enquiries from your CIBIL report.

Check Your Credit Report

Start by taking out a copy of your CIBIL report from the official CIBIL website.

Carefully review your report to identify any inaccurate or unauthorized enquiries.

Dispute Inaccurate Enquiries:

If you find any enquiries that you did not authorize or believe need to be revised, file a dispute with CIBIL. Provide all necessary documentation and evidence to support your dispute.

Negotiate with Lenders:

For legitimate enquiries, especially those related to loan applications you didn't proceed with, consider contacting the lender. Request that they remove the hard enquiry as a goodwill gesture.

Time Heals Hard Enquiries:

Hard enquiries typically stay on your CIBIL report for two years. Their influence on your credit score gradually decreases.

Improve Your Credit Score:

Focus on improving your overall credit score by paying bills on time, reducing outstanding debt, and maintaining a healthy credit utilization ratio. A better credit score can offset the negative impact of past enquiries. It's essential to exercise caution when applying for new credit frequently. Each new application results in a hard enquiry, which can lower your credit score.

Conclusion

Managing your CIBIL report is essential for maintaining a healthy financial profile. While removing enquiries can be challenging, it's not impossible. By following the steps outlined in this guide and maintaining a good credit score, you can improve your creditworthiness and secure better financial opportunities in the future.