CIBIL Report: Inquiry Information
When you check your cibil score then you must have come across the term “Enquiry Information section” if you’re not familiar with Loan Application inquiries then it’s critical to understand what they are, how different ones work, and what they mean. We have answers to your credit-inquiry questions here.
What’s a credit inquiry?
A credit inquiry is a credit check. It’s a request to view your credit by Banks, NBFCs, Financial Institutions and others who are legally allowed to see your credit report. There are two types of queries Hard Queries and Soft Queries.
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A Hard inquiry happens when a potential lender looks at your credit report and uses that information to decide whether to offer you credit and what the terms of the offer might be. Think of hard inquiries as for the types of credit checks that happen when you apply for credit, whether it be a credit card, mortgage, car loan or other types of financing. Hard inquiries must be made with your permission and in connection with specific transactions. Hard Queries are always counted and factored in a way that it has a direct impact on your Credit Score. More no of Hard Queries shows the desperation of a customer to avail loans and credit facility.
A soft inquiry, on the other hand, is more of a routine credit check that doesn’t need to be done with your permission. Most importantly, soft inquiries won’t show up on the credit reports potential lenders request to evaluate your creditworthiness. Soft inquiries can happen for a variety of reasons. One example is when potential lenders check your credit report to determine whether to make you eligible for any pre-approved offers. Another happens when one of your existing creditors checks your credit to make sure you’re still creditworthy. When you buy your Credit Report from any Credit Bureau company for your knowledge only then it is also called soft query. A soft query does not have any adverse impact on your Credit Score. Why inquiries matter.
