| Overview: Credit enquiries play a vital role in determining your credit score, affecting future loan approvals. Understanding their impact and duration on your file helps you plan better financial decisions and maintain a healthy credit profile. |
The Truth About Credit Enquiries and Their Lasting Impact
Credit enquiries occur when a lender, bank, or financial institution checks your credit report during loan or credit card applications. In India, credit bureaus like CIBIL, Experian, and Equifax record these checks, categorising them into hard and soft enquiries.
A hard enquiry, often from loan or credit card applications, can lower your credit score temporarily. According to CIBIL, such enquiries generally stay on your file for up to 24 months, influencing your lending eligibility in that period.
About Credit Enquiries
Credit enquiries reveal how often and why your credit profile is being reviewed by lenders or institutions.
Types of Credit Enquiries
- Hard Enquiries – Triggered by applying for loans, credit cards, or mortgages; can slightly reduce your credit score.
- Soft Enquiries – Occur during background checks or when you check your own score; no impact on your credit score.
Duration on Your File
In India, most hard enquiries remain visible for two years. While they don’t affect your score for the entire period, multiple hard enquiries in a short span may raise red flags for lenders.
| Important to Know: Multiple loan applications within weeks can harm approval chances even if your score is good. |
Why the Duration Matters for Borrowers
A long record of recent hard enquiries signals higher credit risk to lenders. This can:
- Reduce approval chances for loans or credit cards.
- Lead to higher interest rates offered by banks or NBFCs.
- Limit access to premium credit products.
Borrowers seeking competitive personal loan rates should manage the frequency of applications carefully and understand credit rating and debt.
Table: Impact of Credit Enquiries Over Time
The effect of a credit enquiry on your score and lender perception reduces as time passes.
| Time Since Enquiry | Impact on Credit Score | Lender Perception |
| 0-3 months | Slight dip (5-10 points) | High activity risk |
| 4-12 months | Negligible impact | Stable but cautious |
| 13-24 months | No score impact | Normal risk profile |
Managing Credit Enquiries Effectively
Limiting unnecessary credit enquiries helps maintain a strong score and a healthy borrowing profile.
- Check Eligibility Before Applying – Use tools to pre-qualify for loans without triggering hard enquiries.
- Space Out Applications – Avoid making multiple credit applications within a few weeks.
- Review Credit Report Regularly – Identify unauthorised enquiries and report them to bureaus.
For better planning, you can also review loan settlement effects on your credit score before making decisions.
The Role of Credit Enquiries in Personal Loan Approval
When applying for a personal loan, lenders assess your repayment history, credit utilisation, and recent enquiries. The Airtel Finance Flexi Credit offers personal loans up to ₹9 lakhs with competitive interest rates starting from 12.75%, based on credit health. Fewer recent hard enquiries can help secure better terms and make approval faster compared to situations like loan moratorium periods.
How Long Do Credit Enquiries Stay on Your File—Real Scenarios
The impact of a credit enquiry depends on its type and frequency over time.
- Scenario 1: An individual applies for three credit cards in two months. All hard enquiries remain visible for 24 months, lowering approval chances for a high-value personal loan.
- Scenario 2: A borrower checks loan offers using an eligibility tool (soft enquiry). No impact on score; approvals remain unaffected.
Borrowers can avoid unnecessary risks by knowing days past due details in their CIBIL reports.
| Facts to Know: In India, credit scores range from 300 to 900; scores above 750 are considered excellent. |
Airtel Finance and Credit Health
While the question is how long do credit enquiries stay on your file, the bigger picture is about managing these enquiries wisely to maintain strong credit health. Airtel Finance’s platform lets you:
- Check your free credit score online.
- Apply for a personal loan with instant approval and minimal documentation.
- Adjust the loan amount and tenure to suit your budget.
Also, understanding concepts like debt refinancing or contingent liability can further help in financial decision-making.
This helps avoid unnecessary enquiries and ensures your file remains clean for future borrowing needs.
| What You Must Know: Even one missed EMI after a new loan can drop your score faster than multiple enquiries. |
Final Word: Keep Your Credit File Healthy
Credit enquiries are an unavoidable part of securing credit, but their management decides whether your financial profile remains strong. While credit enquiries are fixed at two years in India, the way you space and limit them makes a big difference to your borrowing opportunities.
Airtel Finance offers tools to check your score, eligibility, and apply for personal loans digitally—helping you avoid unnecessary hard enquiries while getting competitive rates.
FAQs
How long do credit enquiries stay on your file?
In India, hard credit enquiries typically remain visible on your file for 24 months.
Do soft enquiries affect my credit score?
Soft enquiries do not impact your credit score and remain invisible to lenders.
Why can multiple enquiries harm my credit score?
Multiple hard enquiries signal higher credit risk and may reduce your loan approval chances.
Can I remove a credit enquiry from my file?
Incorrect enquiries can be disputed with the credit bureau for possible removal.
How can I avoid unnecessary hard enquiries?
Check eligibility before applying and space out credit applications over several months.
