Does the enquiry by multiple banks regarding my CIBIL Score impact my credit score?
Too many enquiries are not good when you are applying for a loan since lenders will see you as credit hungry
There are mainly four reasons for decrement in CIBIL score: 1. Your credit/payment history has a huge effect on your CIBIL score. Delayed/Late payment of minimum due bill amount for your credit card (5% of total bill amount on most of the cases) or loans. 2. High utilization of your credit line i.e. an increase in the current pending dues on the card over time impacts your score adversely. 3. Higher the number of unsecured loans with a high utilization also impacts adversely to your score as there will be a larger payment because of the high rate of interest. On the other hand, secured loans favor your CIBIL score. 4. Too many credit enquiries within the last 12 months..