Hard Enquiry
A bureau check triggered when you formally apply for credit.
Several hard enquiries in a short window read as credit hunger and can shave points off the score. Checking your own report is a soft enquiry and has no effect.
Why Hard Enquiry matters when comparing products
When comparing financial products in India, each formal application often leads to a 'hard enquiry' on your credit report. Lenders view multiple such enquiries within a short period as an indicator of potential credit risk or a high need for funds. This signal can sometimes impact the perceived creditworthiness of an applicant, influencing the terms offered or even the approval decision, as it suggests frequent borrowing attempts.
Illustrative example
If an individual applies for three different credit cards from various banks within a month, each application triggers a hard enquiry. While their credit score might be 750 initially, these multiple enquiries could lead to a minor reduction, say by 5-10 points. This change, though small, might be noted by subsequent lenders.