Hard Inquiry

Full form: Hard Pull

Credit

A hard inquiry occurs when a lender checks your credit report in response to a formal loan or credit card application. Each hard inquiry slightly lowers your CIBIL score (typically by 5-10 points). Multiple hard inquiries in a short period signal credit-hungry behaviour and can lower scores more.

In detail

Hard vs Soft inquiry:nHard inquiry: lender pulls your report because you applied. Reduces score. Stays in report for 2 years.nSoft inquiry: you check your own report, or employer checks for background verification, or bank checks for pre-approved offers. Does NOT affect score.nnHard inquiry management:n1. Do not apply for multiple loans/cards simultaneouslyn2. Space out applications by at least 3-6 monthsn3. If rate shopping for home loan: multiple inquiries within 14-45 days counted as single inquiryn4. Check your own score (soft inquiry) freely -- does not impact score

Formula

Score impact: each hard inquiry -5 to -10 CIBIL pointsnMultiple inquiries in 30 days: may reduce score by 15-30 points collectively

Real-life example

🇮🇳 India example

Priya needs a home loan. She applies to HDFC, ICICI, SBI, and Axis Bank all in the same week. Four hard inquiries. Her CIBIL drops from 785 to 745. All four banks see a score of 745 -- which is still good. If she had spaced applications 3 months apart: score stays at 785 for each application. Better interest rates at 785 vs 745.

Frequently asked questions

How long before a hard inquiry disappears from my CIBIL report? ▼

Hard inquiries remain visible in your report for 2 years but their score impact reduces significantly after 6-12 months. The primary credit score drop from hard inquiries typically recovers within 3-6 months if no new negative information is added.