Everything You Need to Know About Hard Inquiries and Credit Checks

Did you know that applying for a personal loan can impact your credit score? 

“Your credit score is your financial identity card in today’s lending world.” Many Indian loan applicants don’t realize how simply applying for loans affects their credit standing. 

When you apply for a personal loan, the lender checks your credit history thoroughly. This check is called a “hard inquiry”. Each hard inquiry gets recorded in your credit report. 

These inquiries matter more than most people think. They can lower your score temporarily. Multiple loan applications in a short time might make lenders think you’re desperate for money. 

In this blog, we’ll explain hard inquiries in simple terms. We’ll show you how they affect your credit score when applying for personal loans in India. Understanding this will help you plan your loan applications better. 

Why Do Hard Inquiries Hurt Your Credit Score? 

A hard inquiry, also called a hard pull, happens when a lender checks your credit report to decide whether to approve your loan. It’s a normal step in most loan or credit card applications. 

But here’s the catch—this check signals that you’re looking for new credit. And that can cause your credit score to drop by a few points. 

Do personal loans require a hard inquiry? The answer is yes, and here’s why. 

Credit reporting agencies such as CIBIL and Experian monitor how often you go for credit. One or even two hard inquiries will not ring any alarm. But if you are going for several personal loans within a brief time frame, it may portray that you’re under financial strain. 

This is considered by lenders as an alarm, for it might mean that you’re stretching yourself thin. Make good use of this and refrain from taking multiple applications in close succession to preserve your credit standing.  

This is the reason you need to time your loan applications properly and take one only when you’re serious about taking the loan. 

Are Hard Inquiries Really That Bad? 

The short answer? 
No, hard inquiries aren’t as scary as they seem. 

A single hard inquiry usually brings your credit score down by just a few points—typically 5 or fewer. And the best part? That dip doesn’t last long. 

If you’re handling your credit smartly—paying EMIs on time, keeping your card balances in check—your score will bounce back before you know it. 

So yes, it’s helpful to understand how hard inquiries affect your credit score, but honestly? One or two won’t do any real damage. No need to panic—just stay consistent with good habits, and you’re all set. 

Plus, credit scoring systems are smarter than you think. They understand that people compare options. So, if you’re checking rates for personal loans or car loans within a few weeks, multiple inquiries are often counted as just one. 

That means you can still be a smart shopper without damaging your score. 

Of course, applying for too many loans back-to-back can raise eyebrows. But if you’re careful and intentional, a couple of inquiries won’t hurt you much. 

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Can You Remove a Hard Inquiry from Your Credit Report? 

Yes, hard inquiries can be deleted—but only in specific circumstances. 

If you notice a hard inquiry you did not initiate, it could be identity theft or an error. Maybe a lender pulled your credit inadvertently. Then you have every right to challenge the credit agency—CIBIL, Experian, or whatever company reports it. 

You may file the complaint online, upload evidence, and seek correction. When the inquiry is established to have been unauthorized, it will be deleted from your report. 

But what about the inquiries you agreed to? 
If you applied for a personal loan, credit card, or any kind of credit, that inquiry is considered valid. These can’t be removed. They’re part of your credit history and help build your financial track record. 

The good news? 
Even legitimate hard inquiries don’t last forever. They automatically drop off your credit report after 2 years—and their impact fades much sooner, usually within a few months. 

When Does a Hard Inquiry Fall Off Your Credit Report? 

The impact of hard inquiries on credit isn’t as long-lasting as many people think. 

Yes, a hard inquiry stays on your credit report for up to two years. But the actual effect on your credit score? That fades much faster—usually within a few months. 

In most cases, your score bounces back in 3 to 6 months, as long as you’re doing the basics right—like paying EMIs on time, keeping your credit card balances low, and not missing any bills. 

So don’t stress too much. One or two hard pulls won’t ruin your financial future. 

How hard inquiries impact loan approval chances really comes down to patterns. If you’ve applied for credit too often in a short time, it might raise concerns for lenders. But if your overall credit behaviour is solid—on-time payments, low balances, steady income—you’re still in a good position. 

Just focus on smart credit habits, and let your history speak for itself. 

Conclusion: Stay Smart About Credit Inquiries 

A personal loan hard inquiry is a standard part of applying for a loan. While they can cause a small, short-term dip in your credit score, they’re not harmful if managed wisely. The key is to avoid excessive credit applications in a short span and always apply with trusted lenders. 

Need help comparing loan options without hurting your credit? 

 WeCredit connects you with top banks and NBFCs so you can explore personal loan offers smartly and confidently—without stress or confusion. Stay informed, stay credit-wise.