When applying for a personal loan, most people focus on interest rates and EMIs — but overlook one crucial factor: the loan enquiry.
Every time you apply for a loan or check eligibility, lenders run a credit enquiry. These enquiries directly influence your credit score and, in turn, your loan approval chances.
Let’s understand what a personal loan enquiry means, how it impacts approval, and how Vizzve Finance helps borrowers stay credit-smart.
What Is a Personal Loan Enquiry?
A personal loan enquiry happens when a lender checks your credit report to assess your financial reliability before offering a loan.
There are two main types:
| Type | Who Initiates It | Impact on Credit Score |
|---|---|---|
| Soft Enquiry | You (e.g., checking your own score) | ❌ No impact |
| Hard Enquiry | Lender (when you apply for a loan) | ⚠️ May reduce score slightly |
Example:
If you apply for loans from multiple lenders within a short time, each lender performs a hard enquiry, which can lower your credit score by a few points.
How Enquiries Affect Your Loan Approval
When lenders notice multiple hard enquiries on your report, they assume you’re credit-hungry or facing financial stress, reducing your trust factor.
Here’s how it affects approval:
📉 Lower Credit Score: Each hard enquiry may reduce your score by 3–5 points.
⏳ Reduced Approval Chances: Frequent applications signal higher risk.
💰 Higher Interest Rates: Lenders may still approve but at costlier terms.
⚙️ Limited Pre-Approval Offers: You might miss out on instant loan deals.
How to Avoid Negative Impact from Enquiries
1. Use Loan Eligibility Checkers:
Platforms like Vizzve Finance offer soft enquiry tools that check eligibility without affecting your score.
2. Apply Strategically:
Avoid applying with multiple lenders at once — instead, shortlist trusted ones.
3. Space Out Applications:
Wait at least 3 months between loan applications.
4. Monitor Your Credit Report:
Regularly track your score to stay aware of recent enquiries.
Vizzve Finance Insight:
“At Vizzve Finance, we help customers find the best loan match with minimal credit score impact — using soft enquiry systems and transparent assessments.”
How Vizzve Finance Handles Enquiries Smartly
✅ Soft Enquiry First: No score drop during pre-approval checks.
🔍 Instant Eligibility Report: See your chances before you apply.
🛡️ Secure Data Handling: Your credit details stay confidential.
📈 Personalized Loan Offers: Based on your actual credit health, not guesswork.
Conclusion:
A personal loan enquiry might look small, but it carries weight in your financial journey.
With Vizzve Finance, you can explore the best personal loan offers safely — without harming your credit score or approval odds.
💡 Key Takeaway: Apply smart, limit hard enquiries, and let Vizzve Finance guide your loan approval path confidently.
FAQs
1. What is the difference between a hard and soft enquiry?
A hard enquiry happens when a lender checks your credit for approval; a soft enquiry occurs when you or a platform check eligibility without score impact.
2. How long does a hard enquiry stay on my report?
Typically, for up to 24 months, though its effect fades with time.
3. Does Vizzve Finance affect my credit score when checking eligibility?
No, Vizzve Finance uses soft enquiries — ensuring zero score impact.
4. How can I improve my chances after multiple enquiries?
Wait a few months, repay existing loans on time, and maintain a utilization ratio under 30%.
Published on : 3rd November
Published by : SMITA
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