Your CIBIL Score Reduce Every Time You Check It? Myth vs Reality

Credit card and loan inquiries happen when a bank, NBFC or any lender checks your credit report with TransUnion CIBIL before offering you credit. These checks help lenders understand your repayment behaviour, past loans and overall credit history. You can even check your own score from time to time. But many people worry about does checking CIBIL score affect it. The answer depends on the type of inquiry. Some checks affect your score, while others don’t. Knowing the difference makes it easier to apply for credit with confidence.

Many people worry about whether their CIBIL score drops every time they or a lender checks it. This is a common doubt, especially when you track your score often to understand your credit health. Lenders like banks and NBFCs also run checks when you apply for a loan or credit card.

The impact depends on the type of inquiry. Some checks don’t affect your score at all, while others can cause a slight drop. If you’ve wondered how much CIBIL score will decrease for each inquiry, read on to know the different types of inquiries, their effects and more.

Understanding CIBIL Enquiries 

Every time your credit report is checked, it is recorded as a CIBIL enquiry. These enquiries show lenders how often you apply for credit and how you handle it. But not all enquiries affect your score in the same way. Some are harmless and don’t change your score at all, while others can reduce it by a few points. The impact depends on why the check is happening and who is initiating it. Here’s how: 

Type of Inquiry	Who Initiates It	Impact on CIBIL	Visible To	Examples
Soft Inquiry	You or institutions are checking basic eligibility	No negative impact on your score	Only visible to you on your CIBIL report	Checking your own score, pre-approved loan or card offers and background checks
Hard Inquiry	Lenders, when you submit a credit application	Can reduce your score by 0-5 points, depending on your credit history	Visible to lenders and financial institutions	Personal loans, car loans, home loans, new credit cards and limit increase requests

Soft inquiries are completely safe and do not harm your credit profile. Hard inquiries, on the other hand, can affect your score if they occur too often within a short time.

Impact of Credit Card Inquiries on Your CIBIL Score

Every hard inquiry leaves a mark on your credit profile. Understanding how it affects your score can help you apply for credit more carefully. Here’s what really happens when lenders check your report:

• Small drop per inquiry: A hard inquiry can reduce your score by 0-5 points. The impact varies based on your credit history length. If you’re new to credit, each inquiry can impact your score a little more.
• Multiple applications signal credit stress: When you apply for many loans or cards within a short time, it signals credit stress. It tells lenders you may be relying too much on credit, which becomes a red flag for approvals.
• Hard inquiries stay for 24 months: Once recorded, these enquiries remain on your TransUnion CIBIL report for 2 years. Even if the loan gets rejected, the inquiry stays.
• Affects loan approvals: Too many inquiries can reduce your chances of getting approved for future loans or credit cards. Lenders prefer borrowers with fewer and spaced-out applications.
• Can influence interest rates: When lenders notice repeated inquiries, they may still approve your application, but at a higher interest rate to cover the perceived risk.

Managing CIBIL Enquiries Effectively

Managing your credit inquiries well helps you keep your score steady. Here are a few easy habits to follow:

• Apply only for credit you truly need: Every loan or credit card application triggers a hard inquiry, so limit requests to situations where you genuinely require funds.
• Compare offers before applying: Check interest rates, eligibility and benefits in advance. This prevents multiple rejections and reduces the number of inquiries on your report.
• Use pre-qualification tools: Many lenders offer soft inquiry checks to tell you if you’re likely to be approved. These checks do not affect your score.
• Space out your credit applications: Avoid applying for several loans or credit cards at the same time. Spacing them out shows lenders that you are not credit-hungry.
• Review your CIBIL report regularly: Monitoring your report helps you spot errors or unauthorised inquiries early so they can be corrected quickly.
• Dispute unexpected inquiries: If you see an inquiry you don’t recognise, raise a dispute with TransUnion CIBIL and inform the lender. Acting early helps protect your credit profile.

And if you ever want instant funds but have a lower score, Fibe offers a quick and easy solution to get funds. You can apply for an Instant Personal Loan and manage all your planned or unforeseen financial needs without any hassle. 

We use an alternate scoring mechanism to check your creditworthiness, allowing you to get funds affordably even with a lower CIBIL score. Download the Fibe App or apply on the website today.

FAQs on Whether Your CIBIL Score Reduces Every Time You Check It

How much does the CIBIL score decrease with each inquiry?

A hard inquiry can lead to a drop of 0 to 5 points in your CIBIL score. But there’s no need to stress by thinking whether or not your CIBIL score reduces every time you check it. It won’t impact much, as this check is considered a soft inquiry.

Does enquiry reduce CIBIL score?

Only hard inquiries can reduce your score. They happen when you apply for a loan or credit card. Soft inquiries, like checking your own score, do not harm your CIBIL score.

Can I remove a hard inquiry if I didn’t authorise it?

Yes. If you find an inquiry you did not approve, just raise a dispute with TransUnion CIBIL and inform the lender. Unauthorised inquiries will then be removed after verification.

How can I monitor and manage the number of credit inquiries reflected in my CIBIL report?

You can manage your inquiries by checking your CIBIL report every few months. Look for the ‘Enquiry’ section to see recent hard checks. If something looks wrong, you can raise a dispute right away.