Does checking CIBIL score reduce it

Does checking CIBIL score affect CIBIL score?

A common concern among borrowers is whether checking their own credit score frequently reduces it. The answer is generally no. When individuals check their credit report through official platforms or credit bureaus, the system records it as a soft inquiry. Soft inquiries do not negatively affect the credit score because they are only meant for personal review.

However, when a lender checks your credit profile while evaluating a loan approval or credit application, it may create a 'hard' inquiry. Hard inquiries may have a temporary effect on your credit score if they occur frequently within a short period. Therefore, regularly reviewing your credit report for personal monitoring does not reduce your score.

What is a hard inquiry and how does it impact your CIBIL score?

Hard inquiries occur when lenders evaluate your creditworthiness during credit applications. These checks are typically recorded in your credit report when you apply for new credit products.

• Happens when a lender checks your credit for loan approval.
• Applications for a loan or credit card may trigger these hard inquiries.
• Multiple hard inquiries may temporarily impact your CIBIL score.
• Lenders review these inquiries while evaluating credit applications.
• Excessive credit applications may signal higher borrowing risk.

Also Read: CIBIL Score Range: Meaning, Scale & Factors - Axis Bank

What is a soft inquiry and why it does not affect your score?

Soft inquiries occur when individuals or institutions review credit information without initiating a credit application.

• Happens when you check your credit report for personal monitoring.
• Financial institutions may perform soft inquiries during internal credit reviews or pre-approved offer assessments.
• Does not affect the overall CIBIL score calculation.
• Helps individuals monitor their credit health regularly.
• It facilitates responsible credit management and financial planning.
• Recorded as a soft inquiry in the CIBIL report inquiry section.

Importance of checking your CIBIL score regularly

Regular monitoring of your credit profile helps individuals maintain better financial discipline.

• Helps track changes in your credit score over time.
• Allows early detection of errors in the CIBIL report.
• It helps maintain healthy credit behaviour and financial discipline.
• It helps you prepare better before applying for loans.
• It assists individuals in enhancing their CIBIL score by promoting responsible credit usage.
• It aids in the early identification of unauthorised inquiries or suspicious credit activity.

Also read: 4 easy steps for CIBIL correction - Axis Bank

Frequently Asked Questions

1. Does checking my CIBIL score frequently lower my credit score?

No. Checking your own credit score usually creates a soft inquiry, which does not affect your CIBIL score.

2. What is the difference between hard inquiry and soft inquiry?

A hard inquiry occurs when lenders evaluate your credit during loan applications, while soft inquiries occur when individuals check their own credit report.

3. How can I check my CIBIL score for free without reducing it?

You can check your credit score through authorised credit bureau platforms where personal checks are recorded as soft inquiries.

4. How long do hard inquiries stay on a CIBIL report?

Hard inquiries may remain in the credit report for some time and be visible to lenders reviewing credit applications.

5. Can I remove a hard inquiry from my CIBIL report?

Hard inquiries cannot usually be removed unless they are incorrect or unauthorised. If you find an error, you can raise a dispute with the credit bureau to request a correction.

6. How many points does a hard inquiry reduce from a CIBIL score?

The impact may vary depending on credit behaviour, but multiple inquiries within a short period may temporarily affect the score.