Credit Report Clean-Up: How to Remove Hard Inquiries?
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If you have ever applied for credit in the UAE, chances are you have had a hard inquiry added to your credit report. While a single hard inquiry may not have a significant impact on your credit score, multiple inquiries can make lenders view you as a high-risk borrower. Fortunately, there are ways to remove hard inquiries from your credit report and improve your creditworthiness.
In this article, we will explore the steps you can take to remove hard inquiries from your credit report in the UAE. From understanding the types of inquiries to disputing errors with a credit bureau, we will guide you through the process of cleaning up your credit report.
With these tips, you'll be on your way to a cleaner credit history and have better chances of securing credit in the future.
Hard Inquiry: An Overview
When you make an application for a fresh loan or credit card, a hard inquiry is made. It involves the lender analysing a number of credit histories to see if you match the requirements for creditworthiness.
There are two key ways in which hard pulls differ from soft questions. When you request a mortgage, credit cards, or other finance, hard inquiries are made in the beginning. Second, although hard inquiries normally lower your credit Score by a few points, soft inquiries have no impact whatsoever. The more hard pulls you have on your file, the riskier you will appear to potential lenders.
Before they naturally disappear from your credit reports, hard pulls are present on the credit report for two years. You would, thus, probably have to wait till the 24-month window has passed in order to see any valid hard inquiries disappear.
Not every hard inquiry has an effect on credit ratings. As lenders evaluate your credit to decide what terms and rates to offer, you can experience many hard inquiries while rate-shopping for a mortgage or vehicle loan. Credit scoring algorithms will count your loan applications as one inquiry as long as you submit them within a 14-day window (or occasionally for a little bit longer).
Why are there Hard Inquiries on Your Credit Report?
Discussed below are the distinctive reasons for hard inquiries -
- Credit Score Evaluation from Authorised Lending and Financial Institutions - A data furnisher is any authorised lender who submits information to credit reporting organisations. Examples include banks, loan providers, credit card firms, and even your landlord. The furnisher will want to look into your credit history when you apply for a new credit product. As a result, you will need to provide the lender with permission to acquire a copy of your credit report. For instance, an inquiry into your credit score will be required before you can proceed with an application for a vehicle loan.
- Errors in Reporting - al etihad credit bureau (AECB) may end up accidentally making erroneous entries in your credit report. Some of the errors are -
- Mismatched Identity - This includes -
- Errors involving your personally identifiable data such as a wrong name, address, or cellphone number
- Account details that were mixed up with somebody who has an identical name as you or a name similar to yours
- The same loan that is listed more than once under different names
- Mistaken details about accounts brought on by identity theft
- Errors in Stating Balance and Data Management - Such errors usually include the following -
- Wrong credit card limit or present balance.
- Reintroducing inaccurate information despite the correction
- The same accounts appear more than once under various creditors
- Account Errors - They could be -
- Inaccurate dates (such as the date of opening, the last payment, or the first delinquency)
- Inaccurate notifications of payment delays or defaults
- Account owners reported by authorised users
- Accounts that have been closed are labelled as open, or vice versa
- Potential Identification Theft - If you come across an unusual query, it could be that the lender made an honest error. However, it can also be a sign of fraud. Therefore, if you are in doubt, always get in touch with the data provider.
Reasons You Should Remove Hard Inquiries from Your Credit Report
There is nothing you can do to get a hard credit inquiry removed if it appears on your credit record and is valid (i.e., you were aware that you were seeking credit). However, after a year, it has no effect on your credit score - after two years, it is removed from your credit report.
With that said, it is important to get rid of any hard credit inquiries that you do not recognise due to a few factors. First of all, even if the inaccuracy only has a minor effect, you would still be unfairly penalised. Second, it might be an indication of fraud, which makes it crucial to look into it further and have it taken down.
How to Remove Hard Inquiries from the Credit Report?
You cannot take the hard inquiries out of your credit report if they are genuine. However, you can definitely raise an issue if an incorrect inquiry occurs or if you discover an inaccuracy in your credit report. The steps to take to delete illegitimate hard pulls from your credit record are listed below:
- Visit the official website of the Al Etihad Credit Bureau (AECB).
- Click on the “Data Correction” tab and promptly and accurately fill out the provided form.
- Precisely fill in the details like your full name, Emirates ID, date of credit report purchase, details of the bank, AECB subject ID, and more. Make sure that you affix the requested documents.
- Submit the form. After this, AECB will work in cooperation with the lending institution to resolve the dispute. The request will be sent to the concerned information provider after your submission. Note that the latter will respond to you within 10 business days, based on the Central Bank of the UAE’s guidelines.
Note - You can raise a dispute only for the latest credit reports.
Ensure You Have a Healthy Credit Report
While soft inquiries do not show up on your credit report, mismanaged and unauthorised hard credit inquiries can negatively impact your credit score and stay on your credit report for a long time. To maintain a healthy credit report, follow the tips mentioned below:
- Apply for Limited Loans and Credit Products - To ensure that you have a healthy credit report, try to apply for a new credit facility only when you require it. Applying for a loan or a credit card and getting rejected can highly impact your credit score. So before applying for a credit facility, take time and do market research for the kind of product you want. Don’t forget to take your eligibility into consideration.
- Make a Soft Inquiry - Make a soft inquiry to keep a check on your credit report. Check for any unauthorised hard inquiries and raise a dispute if you spot any. It is usually recommended to conduct a soft inquiry once every three months.
- Plan Before Applying for a Loan or Any Other Credit Facility - Before applying for a credit facility, it is important to plan your budget smartly. You should also learn about how loan applications work. Make sure that you do not apply for too many loans in a short time span.
To know more about how to remove hard inquiries from your credit report, read the following FAQ section.
FAQ's
Ans: A hard inquiry stays on your AECB credit report for up to 2 years.
Ans: Hard inquiries impact your credit score negatively and end up staying on the credit report for 2 years. An excess of such inquiries indicates that you are not a reliable borrower and cannot manage money well. Thus, if you find any unauthorised credit application, connect with the bank or lending institution right away and raise a dispute.
Ans: You cannot remove a hard inquiry from your credit report if they are valid. However, you can dispute an unauthorised hard credit inquiry.
Ans: To make sure that you have minimal credit inquiries, send limited applications, check your credit score, and plan your budget properly before applying for a loan.
Ans: The information provider responds to your disputed application within 10 business days after conducting a thorough investigation. If the outcome of the inquiry is in your favour, Al Etihad Credit Bureau will remove the hard inquiry. If not, the credit bureau will share a valid reason for the same with you.
| Credit Score for different types of Loan | |||
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| Credit Score for Personal Loan | Credit Score for House Loan | Credit Score for Car Loan | Credit Score for Student Loan |
