Does Checking CIBIL Score Frequently Lower Your Credit Points?

Imagine you're planning to apply for a home loan, a credit card, or even a car loan. Naturally, you want to ensure your CIBIL score is in good shape before proceeding. But then, you hear a common myth: Checking your CIBIL score frequently will lower your credit score! This concern makes many people hesitant to monitor their credit health. But is it really true?

In this article, we will debunk this myth, explain the difference between hard and soft inquiries, and provide expert insights on how often you should check your CIBIL score.

Does Checking CIBIL Score Affect Your Credit Points?

The simple answer is: No, checking your CIBIL score yourself does not lower your credit points. When you check your own credit score, it is considered a soft inquiry, which has no impact on your creditworthiness. However, if a bank or financial institution checks your score while evaluating your loan or credit card application, it is classified as a hard inquiry, which may have an effect on your credit score.

Understanding the difference between hard and soft inquiries is crucial for maintaining a healthy credit profile.

What is a Hard Inquiry?

A hard inquiry occurs when a lender or financial institution checks your credit score to assess your eligibility for a loan or credit card. This inquiry happens when you apply for:

• A Business Loan or Home Loan
• A Credit Card
• A Two-Wheeler Loan
• Any other form of credit facility

Since multiple hard inquiries in a short span suggest a higher credit risk, they can slightly lower your CIBIL score. Frequent loan applications within a short period may make lenders perceive you as financially unstable, reducing your chances of approval.

What is a Soft Inquiry?

A soft inquiry happens when you check your own CIBIL score or when a company conducts a background credit check without you applying for a loan or credit card. Some common examples of soft inquiries include:

• Checking your own CIBIL score via a credit bureau’s website
• Pre-approved loan or credit card offers sent by banks
• Employer background checks related to financial trustworthiness

Soft inquiries do not impact your credit score. In fact, checking your score regularly helps you stay informed and take corrective action if needed.

How Do I Know Who is Checking My CIBIL Score?

You can monitor who has checked your credit score by obtaining a CIBIL Report. The report includes a section called “Enquiry Information” which lists all the hard inquiries made by lenders. If you notice an unauthorized inquiry, you should:

1. Contact CIBIL to verify the inquiry details.
2. Raise a dispute with the credit bureau if you find an error.
3. Be cautious about fraud—if someone is making inquiries without your consent, it could be a sign of identity theft.

Keeping an eye on your report ensures that your credit score remains accurate and that unauthorized checks don’t go unnoticed.

How Often Should You Check Your CIBIL Score?

Experts recommend checking your CIBIL score at least once a month or before applying for a loan or credit card. Regular checks help you:

• Detect errors or discrepancies early
• Identify any unusual or unauthorized inquiries
• Track your credit health and take steps to improve it if necessary
• Plan for a major loan application by ensuring your score is strong

Since checking your own score does not lower it, there is no harm in monitoring it frequently.