Does Checking Your Credit Score Affect Your CIBIL Score?

Many people check their credit score before applying for an instant personal loan, a business loan, a credit card, or another financial product. At the same time, a common concern often comes up: Will checking your credit score lower it? Some borrowers worry that looking at their score too often could reduce their chances of getting approved for credit.

The said concern is especially common among people planning to apply for an instant loan through an instant loan app or seeking one online. Since lenders use credit scores as part of their approval process, borrowers naturally want to avoid anything that might negatively impact their credit profile. But the good news is that checking your own credit score is generally safe and can actually help you stay informed about your financial health.

What are the two types of credit inquiries/credit checks?

Before answering the question, it is important to understand the two types of credit inquiries that can appear on your credit report:

Soft inquiry

A soft inquiry or a soft credit check happens when you check your own credit score or when a company checks your credit as part of their background check. Since they are simply informational checks and not requests for new credit, these inquiries do not affect your credit score.

Examples include:

• Checking your own CIBIL or credit score
• Reviewing your credit report through a financial app or website
• Pre-approved loan or credit card eligibility checks
• Periodic account reviews by existing lenders
• Employment or background verification checks

Hard inquiry

A hard inquiry occurs when a lender reviews your credit report as part of a loan or credit card application. Multiple hard inquiries within a short period may signal increased credit demand and can have a small impact on your score.

Examples include:

• Applying for a personal loan
• Applying for a credit card
• Applying for a business loan
• Applying for certain types of credit facilities

Does checking your credit score affect your CIBIL score?

No, checking your own credit score does not affect your CIBIL score. Whenever you view your credit score through a bank, credit bureau, or financial platform, such as the Kissht loan app, it is recorded as a soft inquiry. Since soft inquiries are not linked to new credit card applications, they are not taken into account while calculating your credit score.

What are the benefits of checking a credit score?

Regularly reviewing your credit score is an important financial habit that can provide the following benefits:

• Track your financial health: Understand how your borrowing and repayment habits are impacting your overall credit profile.

• Detect errors early: Identify incorrect information in your credit report and get it corrected before it affects your score.

• Protect yourself against fraud: Spot unauthorised loans or credit accounts in your name and take action quickly.

• Improve your chances of loan approval: Address credit issues in advance and strengthen your profile before applying for credit.

• Access better interest rates: A strong credit score can help you qualify for lower interest rates and better loan terms.

• Positive impact of financial decisions: See how actions like taking a loan, repaying debt, or applying for credit affect your score.

• Stay credit-ready for future needs: Be prepared for emergencies or major expenses by maintaining a healthy credit profile.

What affects your CIBIL score?

Instead of focusing solely on self-checks, borrowers should also consider factors that genuinely affect their credit score when applying for an instant loan online.

• Payment history: Timely repayment of EMIs and credit card bills significantly impacts your score.

• Credit utilisation ratio: Using a large percentage of your available credit limit can negatively affect your credit profile. A rate of approximately 30% or less is preferred.

• Credit history length: Older credit accounts generally contribute positively to your credit history.

• Credit mix: Maintaining a healthy balance of secured and unsecured credit can be beneficial.

• Multiple loan applications: Applying for several loans or credit cards within a short period can lead to multiple hard inquiries and may slightly affect your score.

So, does checking your credit score lower it? The answer is no. Checking your own credit score is treated as a soft inquiry and has absolutely no impact on your CIBIL score. In fact, regularly reviewing your credit report can help you track your financial health, identify errors, and stay prepared before applying for credit.

Before applying for an instant personal loan, a credit card, or any other credit product, take a few minutes to review your score. Platforms like Kissht an instant loan app make it easy to check your credit profile and understand where you stand financially.

FAQs

1. What is a soft inquiry in CIBIL?

A soft inquiry happens when you check your own CIBIL score or credit report. It does not affect your credit score.

2. What is a hard inquiry in CIBIL?

A hard inquiry occurs when a lender checks your credit report after you apply for a loan or credit card. Multiple hard inquiries can slightly impact your score.

3. Does using Experian lower a credit score?

No. When you use a credit bureau or authorised credit monitoring service to view your own credit information, the inquiry is treated as a soft inquiry.

4. Can checking a credit score lower it?

Checking your own CIBIL score does not reduce it. Self-initiated checks are considered "soft inquiries", which have zero impact on your credit profile, no matter how frequently you view them.

5. How often should I check my CIBIL score?

It's a good practice to check your CIBIL score at least once a month, or before applying for a loan or a credit card.