Soft vs hard credit inquiry: What’s the difference?
IDFC FIRST Bank
Credit enquiry means assessing your credit report from the credit bureau. It can be hard or soft with differing effects on the credit score. Let’s decode.
IDFC FIRST Bank
Hard enquiry
A hard enquiry is done by lenders to assess your creditworthiness before they sanction the credit that you have applied for.
IDFC FIRST Bank
Hard enquiry affects your credit score. Too many hard enquiries into your credit score signify a credit risk and damage the score.
IDFC FIRST Bank
Soft enquiry
A soft enquiry is done to assess your credit history. It is a type of standard credit assessment done by self or by another organisation.
IDFC FIRST Bank
Soft enquiries are usually done to check your eligibility for specific offers or when hiring you. They do not have any effect on your credit score.
IDFC FIRST Bank
Hard enquiries require your authorisation and are visible to others. Soft enquiries don’t require any permission and are visible only on consumer disclosure reports.
IDFC FIRST Bank
Know the difference between the two enquiries to manage your score. For easy credit choose IDFC FIRST Bank and get attractive rates.