When you apply for a credit card, lenders check your credit report to evaluate your creditworthiness. This check is known as a hard inquiry and it has a direct impact on your CIBIL score. Many people are unaware that frequent credit card applications can reduce their credit score, even if they don’t end up getting the card. With digital financial tools like ZetApp, users can compare cards smartly and avoid unnecessary applications. By making informed decisions, you can build credit score with ZetApp while protecting your CIBIL health at the same time.
A hard inquiry occurs when a bank or financial institution accesses your credit report to assess your eligibility for credit. Unlike soft inquiries, which are done for background checks or personal credit score reviews, hard inquiries are recorded on your credit report and remain there for up to two years. These inquiries signal to lenders that you are actively seeking credit, which can sometimes be seen as a risk.
How Hard Inquiries Affect Your CIBIL Score
Every hard inquiry may reduce your CIBIL score by a few points. While one inquiry usually doesn’t cause major damage, multiple inquiries within a short time can significantly lower your score. This is because frequent applications suggest financial stress or overdependence on credit. Lenders may then view you as a high-risk borrower, reducing your chances of approval for future loans or cards.
Another important factor is timing. If you apply for multiple credit cards within a few weeks, each application creates a separate hard inquiry. Even if your income is stable, repeated checks can impact your score and take several months to recover.
Difference Between Hard Inquiry and Soft Inquiry
Hard Inquiry: Affects your CIBIL score and is recorded when you apply for a credit card or loan.
Soft Inquiry: Does not affect your score and occurs when you check your own CIBIL score or when companies run background checks for pre-approved offers.
Understanding this difference is essential to maintaining a healthy credit profile.
How to Minimize the Impact of Hard Inquiries
Avoid Multiple Applications: Apply only for one credit card at a time and wait for the result before reapplying.
Check Eligibility Before Applying: Use platforms like ZetApp to assess your eligibility before submitting an application.
Maintain a High Credit Score: A strong credit profile can absorb minor drops caused by occasional hard inquiries.
Pay Existing Dues on Time: A good repayment history helps your score recover faster.
Long-Term Effect on Your Credit Profile
While hard inquiries do impact your CIBIL score, their effect reduces over time. If you maintain timely payments, low credit utilization, and healthy financial behavior, your score can recover within 3 to 6 months. Controlled credit behavior also helps strengthen your long-term creditworthiness and qualifies you for better loan interest rates in the future.
Final Thoughts
Credit card hard inquiries are a necessary part of the lending process, but excessive inquiries can harm your CIBIL score. The key to avoiding unnecessary damage is smart planning and informed decision-making. Instead of applying randomly, use trusted platforms to compare and check eligibility beforehand. With the right strategy and tools like ZetApp, you can safely apply for credit, manage inquiries wisely, and confidently build credit score with ZetApp for a secure financial future.
