Does checking your own credit history hurt your Cibil score?

Lot of people harbour wrong notions about checking their own credit score. Here is the low down on why checking your Cibil score will not have a negative impact on your credit report. On the contrary, it will be considered a healthy practice.

There are numerous factors that go into the constitution of your credit score, and credit inquiries are indeed one of them. This means the higher the number of credit inquiries there are in a short frame of time, the worse the impact on your score.

However those inquiries that will make a difference to your Cibil score are the ones that a lender makes when you make a loan application for a personal loan, mortgage, auto loan or when you are applying for a credit card. These kinds of inquiries are called "hard inquiries". This is a practice followed by most lenders today where they pull out your credit report to find out how responsible you are with handling your debt. If you are applying for too many loans or cards in a short period of time, there will be several hard inquiries on your Cibil report.

On the other hand, if you want to check your own Cibil report and credit score, it will be considered a "soft inquiry" and will have no impact on your credit score. In fact, it is advisable that you check your Cibil score at least once annually. That way you will come to know not only whether or not you are in perfect financial health, you will also be able to report discrepancies if any.

So if you are living in fear because you thought it would be detrimental to your credit score, if you check it yourself, now is the time to bust this myth. A credit bureau is as much for you to access as is your lender's so go ahead and check your credit score whenever you deem fit.

For any assistance on credit score visit our website www.cibilconsultants.com