CIBIL score is a powerful financial tool that helps you to smooth your financial path and achieve business goals. Managing credit scores is a crucial aspect of understanding, managing, and mastering credit inquiries especially those recorded by CIBIL (Credit Information Bureau India Limited). A good CIBIL score is a result of the evaluation of your financial turnover. The assessment is required when you apply for loans or credit cards. This makes you understand the concept of credit inquiries and the ways to empower the CIBIL score for financial success.
What are Credit Inquiries?
Credit Inquiries are the financial inquiries or credit report information of individuals or companies asked by the financial firms or institutes from a credit reporting bureau or agency.
It can be of two types i.e. Hard Inquiry or Soft Inquiry.
Hard Inquiries are initiated by the authorized body when you apply for credits such as loans or credit cards. It impacts your credit score and remains on your credit report for at least two years. It can also be considered as a risk if inquied for multiple inquiries in a short pane of time.
Soft Inquiries do not impact your credit scores. It is also not visible to lenders but generated only for your reference. This report is generated from background checks even when you check your credit score via any medium.
How Credit Inquiries Impact Your CIBIL Score :
Managing credit inquiries wisely is vital for keeping your financial credit profile healthy. However, it impacts less than payment history and credit utilization but needs to be managed for a better and healthier credit score.
How To Empower Your CIBIL Score for Financial Success :
The best part is that you can empower your CIBIL score by mastering credit inquiries strategically such as –
- Be Specific with Credit Applications: Nowadays, you may receive many calls for various credit applications for credit cards, and you keep on applying for different offers. To keep healthy credit scores avoid applying for unnecessary credit applications. Each hard inquiry can lower your credit score.
- Always pay Bills or Emis on Time: If you have a major financial plan like buying a house or car, you need a strong credit score so that you don’t keep your dues pending and delayed.
- Keep a check on your credit report: Regularly check your credit score or credit report to avoid inaccuracies or unauthorized inquiries. If you find any discrepancies, report them to CIBIL promptly and ensure a healthy credit report.
- Build a Strong Credit History: A robust credit history impacts occasional credit inquiries. To focus on keeping your credit card balance low, make timely payments, and diversify your credit mix.
A well-managed credit profile provides enormous financial opportunities and builds a secure and prosperous future. Mastering credit inquiries is a crucial aspect of maintaining a healthy CIBIL score. You need to understand the inquiry types, their impact on credit scores, and adopting strategic credit management practices. For any financial expert advice and assistance, you can connect to financial experts at Vedfin. Vedfin is one of the leading financial companies offering RBF and other financial assistance.