Starting January 1, 2025, banks and NBFCs will need to update your credit score every 15 days. That’s a major shift from the current bimonthly system. CIBIL updates will now be pushed on the 15th and last day of each month.
At the same time, the RBI has mandated that you must be notified every time your credit report is pulled by a lender. Whether it’s a bank or a loan app, you’ll now receive a message or email letting you know who accessed your credit file, allowing you to confirm or dispute any unauthorised checks.
This move puts the power back in your hands. But to truly take control, you need to understand what these checks mean—especially the one that affects your score: the hard enquiry.
What Is a Hard Enquiry?
Whenever you apply for a credit card, personal loan or home loan, the lender wants to know if you’re trustworthy. So they request your credit report from CIBIL (or another credit bureau).
This action – when a financial institution officially pulls your credit report – is called a hard enquiry.
Unlike soft enquiries (like checking your own credit score), hard enquiries are visible to other lenders and can affect your credit score. The logic? If you’re applying for credit frequently, it may signal financial stress or a growing reliance on debt.
Do Hard Enquiries Actually Hurt Your Credit Score?
Yes – but only a little.
If you apply for multiple loans or credit cards in a short span – especially without being eligible – it looks like you’re desperate for credit. This behaviour can hurt your profile and reduce your chances of getting approved at favourable terms.
That’s why experts recommend spacing out applications. Always check your credit score online before applying. This gives you a clear picture of where you stand and whether it’s the right time to approach a lender.
What Triggers a Hard Enquiry?
Here’s a quick list of what counts as a hard enquiry:
- Applying for a credit card
- Taking a personal, home or car loan
- Applying for a BNPL (Buy Now Pay Later) product (Not Always)
- Co-signing a loan for someone else
Simply checking your own credit score doesn’t trigger a hard enquiry. That’s a soft pull and is completely safe. So if you’re monitoring your score monthly, you’re not hurting it.
Can You Remove Unauthorised Hard Enquiries?
Yes. If a bank or lender pulls your report without your consent, you have the right to raise a dispute with the credit bureau.
Under the new RBI rules, you’ll receive alerts for each credit report access. If something looks suspicious, don’t ignore it. Reach out to the lender and the bureau immediately. You may be a victim of identity theft or misreporting.
Final Thoughts
Hard enquiries are a normal part of credit life. You can’t avoid them entirely, but you can manage them smartly. Space out your applications. Check your free credit score online regularly. And if you’re denied once, pause. Find out why. Improve your profile before trying again.
Also, don’t stress if your score drops by a few points after an enquiry. It’s temporary. What matters more is your repayment history, credit utilisation and how long you’ve been using credit responsibly.
What is a Hard Enquiry and How it Affects Your Credit Score