Are CIBIL hard inquiries really that bad?

[Abhishek20]

I have been seeing many posts in which people are concerned about having one additional hard inquiry in their CIBIL report. But is it really something I should be fretting about? Now, I understand if you have more inquiries, especially in a short period of time, it shows you as a credit-hungry borrower and overly reliant on credit, thereby potentially showing you as a risk. This may affect your credit score as well to some extent. But from what I have observed, the effect of hard inquiries on your credit score seem to be minimal and only for the short-term, recovering quickly (if it even dips) after few months of proper payment and utilization ration. If you have a good history, with no defaults and low utilization, then that seems to mostly determine your credit score in the long-term.

So, is having multiple hard inquiries on CIBIL report really bad and will it have any huge consequences? What happens if you have 5 hard inquiries within a month. 20 in a couple months, etc. apart from maybe dipping your credit score by a few points in the short-term?

 

[akshayhs]

You have pretty much answered your own question yourself.

 

[Abhishek20]

I mostly wanted to check if someone really did face any issue due to having too many inquries. Do any bank reject cc based on it? Will it have any significant impact in the long-term on increasing credit score? Will it have impact loan application even if your score is good enough? Is there such a thing as "less than X per year" is ideal?

If the answer to most of them is NO, then I wanted to understand what's the deal with people fretting over getting that one additional hard inquiry?

 

[KLB@96]

Bro chill, doesn't matter even with 5 hits month. may be it will decrease few points bt will recover. dont worry too much

 

[paresh22]

My personal opinion below:
If I am getting something against that enquiry then I am good to have that hard enquiry on my cibil report. But if my credit or loan related applications are rejected then I dont like to see that enquiry on my report.

But you will also find some members here who got many enquiries and still getting new credit cards approved. So what matters here as you already wrote is repayment of your loan or credit card bills to happen before it's due date.

I come to know from this forum that banks like standard chartered dont like any enquiry on you report in last few months at least then only they may think to approve your card application. Then there are banks like icici who always make personal loan hard enquiry on your report when you apply to their cards. Then my experience says Sbi like to double to triple hard enquiries for any loan or credit card related applications. So these (duplicate) enquires does not look good on your report and should get removed. Otherwise having enquiries on your report should not affect your score much.

 

[amitr29]

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I have been seeing many posts in which people are concerned about having one additional hard inquiry in their CIBIL report. But is it really something I should be fretting about? Now, I understand if you have more inquiries, especially in a short period of time, it shows you as a credit-hungry borrower and overly reliant on credit, thereby potentially showing you as a risk. This may affect your credit score as well to some extent. But from what I have observed, the effect of hard inquiries on your credit score seem to be minimal and only for the short-term, recovering quickly (if it even dips) after few months of proper payment and utilization ration. If you have a good history, with no defaults and low utilization, then that seems to mostly determine your credit score in the long-term.

So, is having multiple hard inquiries on CIBIL report really bad and will it have any huge consequences? What happens if you have 5 hard inquiries within a month. 20 in a couple months, etc. apart from maybe dipping your credit score by a few points in the short-term?

It doesn't matter for credit card. If you are applying for HL or PL then credit Card enquiries are ignored by credit. But if you have lot of enquiries for PL, it does matter in your loan application.

For credit card just relax.But do maintain good track with timely payments of credit card bills.

 

[srikant]

Is it true that credit card inquiry don't affect CIBIL as strongly as other loan inquiry?

 

[bhaveshS]

Is it true that credit card inquiry don't affect CIBIL as strongly as other loan inquiry?

Depends on credit age factor.
if 5+ then unlimited enquiry can't harm your cibil

 

[Bugs Bunny]

Okay my Scapia credit card was rejected citing too many hard enquiries.

 

[bhaveshS]

Okay my Scapia credit card was rejected citing too many hard enquiries.

yes some bank cc like StanC has criteria on hard enquiry

 

[Bugs Bunny]

yes some bank cc like StanC has criteria on hard enquiry

This was wierd, first they cited internal policy and shit then I showed them RBI guidelines and they cited my cibil having multiple hard enquiries which was ridiculous.

 

[SSV]

I have been seeing many posts in which people are concerned about having one additional hard inquiry in their CIBIL report. But is it really something I should be fretting about? Now, I understand if you have more inquiries, especially in a short period of time, it shows you as a credit-hungry borrower and overly reliant on credit, thereby potentially showing you as a risk. This may affect your credit score as well to some extent. But from what I have observed, the effect of hard inquiries on your credit score seem to be minimal and only for the short-term, recovering quickly (if it even dips) after few months of proper payment and utilization ration. If you have a good history, with no defaults and low utilization, then that seems to mostly determine your credit score in the long-term.

So, is having multiple hard inquiries on CIBIL report really bad and will it have any huge consequences? What happens if you have 5 hard inquiries within a month. 20 in a couple months, etc. apart from maybe dipping your credit score by a few points in the short-term?

Simple rule,
the longer your credit history the lesser the impact of your enquiries on the score..
The greater number of on time payments also will help.

 

[Deleted member 8482]

25 enquiries in last 10 months and cibil score increased from 764 to 787

 

[srikant]

Depends on credit age factor.
if 5+ then unlimited enquiry can't harm your cibil

Hmm. Does the oldest credit line weigh more for credit age? Or is it a dumb unweighted average of all credit lines?

 

[SSV]

Hmm. Does the oldest credit line weigh more for credit age? Or is it a dumb unweighted average of all credit lines?

Definitely the oldest credit line plays more role.. advised not to close your oldest CC

 

[shrewdoc]

25 enquiries in last 10 months and cibil score increased from 764 to 787

You have a 13 year history. Enquiries don't matter now.

 

[Abhishek20]

25 enquiries in last 10 months and cibil score increased from 764 to 787

Is that shown on taking CIBIL subscription?

 

[paresh22]

Is that shown on taking CIBIL subscription?

Yes

 

[Deleted member 8482]

Is that shown on taking CIBIL subscription?

Yes

 

[ARV]

67 enquires in the last 1 year, score increased by 40 points. Even SC gave me a card, had 10 enquirers in last 3 months. There are many factors which bank considers not just enquiry