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How to Understand the Impact of CIBIL Enquiries on Your CIBIL Score
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How to Understand the Impact of CIBIL Enquiries on Your CIBIL Score If you're planning to apply for a loan or credit, understanding the impact of CIBIL enquiries is crucial. Your CIBIL score plays a significant role in whether you get approved or not. However, many people don’t realize that enquiries made by lenders also affect this score. Let's dive deeper into the impact of CIBIL enquiries and how they influence your credit rating. What are CIBIL Enquiries? Before exploring the impact of CIBIL enquiries, it’s important to understand what they are. Whenever you apply for credit, whether a loan or credit card, the lender conducts a CIBIL enquiry. This enquiry helps them assess your creditworthiness. If you have too many enquiries, lenders might see you as a risky borrower. Consequently, your credit score could drop. Types of CIBIL Enquiries There are two types of CIBIL enquiries: hard enquiries and soft enquiries. As I have shown, hard enquiries occur when you apply for a loan ...