If you have ever checked your credit report, you may have noticed a section called enquiries. Many people ignore it, but lenders take it very seriously. Enquiries show who checked your credit profile and why. In India, enquiries are classified as hard or soft.
Understanding the difference between the two can help you protect your credit score and improve your chances of loan approval.
What Is a Credit Enquiry?
A credit enquiry happens when someone checks your credit report from a credit bureau.
This usually happens when
- You apply for a loan
- You apply for a credit card
- A bank reviews your profile for an offer
Every enquiry gets recorded with the lender’s name and date.
What Is a Hard Enquiry in India?
A hard inquiry happens when you actively apply for credit.
Typical situations where hard enquiry occurs
- Personal loan application
- Home loan application
- Car loan application
- Credit card application
- Buy now, pay later approval
Hard enquiries are visible to all lenders, and they affect your credit score.
Ek do enquiries theek hain, but too many in a short time is a red flag.
How Hard Enquiry Affects Your Credit Score
Each hard enquiry can reduce your credit score by a few points. The exact drop depends on your profile, but repeated enquiries can hurt badly.
Banks assume that
- Multiple enquiries mean credit-hungry behaviour
- You may be under financial stress
- You might take on too much debt
If you apply to many lenders within a short period, your score can drop even if you do not take the loan.
What Is a Soft Enquiry?
A soft enquiry is a credit check that does not impact your credit score.
Soft enquiries happen when
- You check your own credit score
- A bank checks your profile for pre-approved offers
- A company does background verification
- You check eligibility without applying
Soft enquiries are visible only to you, not to lenders.
Isliye score check karna bilkul safe hai.
Difference Between Hard and Soft Enquiry
Hard enquiry
- Happens when you apply for credit
- Reduces credit score slightly
- Visible to lenders
Soft enquiry
- Happens for review or self-check
- Does not reduce credit score
- Not visible to lenders
Knowing this difference helps you plan applications better.
How Many Hard Enquiries Are Too Many?
There is no fixed number, but the general practice in India is
- 1 to 2 enquiries in 6 months is safe
- 3 to 5 enquiries raise caution
- More than five enquiries in a short time hurt approval chances
For large loans, such as home loans, banks prefer a spotless enquiry history.
Why Multiple Enquiries Happen Without You Realising
Sometimes enquiries appear even when you did not expect them.
Common reasons
- Applying through loan comparison apps
- Submitting details on multiple bank websites
- Clicking apply on credit card ads
- Dealers checking eligibility with various lenders
Ek jagah apply karo, but peeche se multiple checks ho jaate hain.
How Long Do Enquiries Stay in Your Credit Report?
Credit enquiries stay on your report for up to 24 months.
Recent enquiries matter more than old ones. After a year, their impact reduces significantly.
How to Reduce Hard Enquiry Impact
Simple habits can protect your score
- Do not apply to multiple lenders at once
- Use eligibility checks before applying
- Space out applications by at least 3 months
- Avoid unnecessary credit cards
- Check your credit profile before applying
Regularly tracking your credit profile helps you monitor changes in your credit score and enquiry count.
Should You Worry About Soft Enquiries?
No.
Checking your own credit score multiple times does not reduce your score. In fact, it helps you stay aware.
Regular monitoring helps you avoid mistakes and apply them at the right time.
Final Thoughts
Hard and soft enquiries may look similar in your credit report, but lenders see them very differently.
Hard enquiries show demand for credit. Too many can make banks nervous. Soft enquiries are harmless and beneficial.
Apply smartly, not frequently. Thoda planning rakho, and your credit score will stay healthy.
FAQs
Does checking my credit score reduce it?
No. Self-checks are soft enquiries and do not affect your score.
How many hard enquiries are acceptable in India?
Usually, 1 to 2 in six months is considered safe.
Can I remove a hard enquiry?
No. Genuine enquiries cannot be removed before expiry.
Do rejected loan applications still count as enquiries?
Yes. The enquiry is recorded even if the loan is rejected.
Should I wait after multiple enquiries before applying again?
Yes. Waiting 3 to 6 months helps your profile recover.
