What is a soft inquiry and why it doesn't hurt your credit score
You must have heard it several times that one should check one's credit score on a regular basis. It helps you rectify any mistake which could be there on your credit report apart from keeping you stay updated of your creditworthiness. This helps you negotiate with lenders effectively at the time of borrowing a loan.
What happens when you check your credit score? It leads to a soft inquiry.
Those who are not aware -- a soft inquiry is a type of credit check that takes place when you check your credit score or when a lender checks your credit for a pre-approved loan offer. This also takes place when current lenders review your account periodically. There is a misconception that soft inquiry leads to the loss of credit score.
I. Against the perception, soft inquiry does not affect your credit score.
II. It is not visible to lenders when they check your credit report.
III. This can occur even without your explicit request (for instance in case of promotional offers).
I. When you check your own credit score on apps such as CRIF High Mark
II. When credit card companies happen to send you pre-approved offers
III. Although it is yet not common in India, but employers could also carry out a basic check without a full application.
This is quite different from hard inquiry which happens when a bank checks your credit as part of a loan or credit card application.
As a matter of fact, hard inquiries can bring your credit score down slightly (usually by a few points) and are likely to remain on your credit report.
Disclaimer: Mint has a tie-up with fin-techs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
For all personal finance updates, click here
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
an hour ago
- Mint
Israel-Iran war: Tel Aviv shares snaps five-days gaining streak amid Middle East tensions, falls less than 1%
Israel stock exchange: Amid rising tensions between Israel and Iran, the Tel Aviv Stock Exchange snapped five-days gaining streak to fall less than a 1 per cent on Monday. The broad Tel Aviv 125 index opened 0.70 per cent down at 2,853.07 on June 23. On Sunday, Israeli stocks surged to all-time highs following U.S. airstrikes on Iran's nuclear facilities, which investors believe will delay Tehran's ability to develop nuclear weapons in the near future. The broad Tel Aviv 125 index closed up by 1.8 per cent, pushing its weekly gains to nearly 8 per cent, while the benchmark TA-35 (.TA35) rose by 1.5 per cent. Following Israeli strikes on Iran, stocks climbed throughout all five sessions last week, rising about 6 per cent, as Israel targeted Iranian nuclear and military sites ahead of the unexpected U.S. attacks on Saturday. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
2 hours ago
- Mint
India may cut duties on US shrimp imports
NEW DELHI : India may lower duties on shrimp imports to support reciprocal trade alignment in its trade agreement with the US, according to two people close to the discussions. The commerce ministry is closely monitoring the US Department of Commerce's actions on countervailing duty (CVD) and anti-dumping duty (ADD) on shrimp imports from India, the officials said on the condition of anonymity. India is keeping a 'close watch" on these developments and may consider recalibrating its own duties on shrimp imports if the US undertakes a revision, especially as the two nations work to resolve trade irritants and harmonize tariff frameworks under the Bilateral Trade Agreement (BTA), the first official said. Also Read: Mint Exclusive: India-US trade deal before 8 July, talks next week Such a move, the second official suggested, would demonstrate India's commitment to fair trade practices and its willingness to align with a key trading partner, provided domestic interests, particularly those of the shrimp farming and processing industry, are safeguarded. Any adjustment on India's part would also take into account global price trends and the competitive landscape in key markets like the US, Japan, and the EU. However, if the deal is signed in time, these duties will be recalibrated according to the mutually agreed-upon terms. Also Read: India, US lay foundation for trade give-and-take Queries sent to the commerce ministry remained unanswered until press time. India's seafood exports Shrimp is one of India's top seafood exports, with the US being its largest market. At present, Indian shrimp exports to the US face an effective customs duty of 17.7%, including 5.77% CVD and 1.8% ADD, and a 10% baseline tariff imposed by the US on 2 April. In exchange, India levies a 30% duty on US-origin Vannamei shrimp, also known as Pacific white shrimp. Competing countries, on the other hand, face significantly higher duties. For instance, Ecuador is subject to a CVD of 7.55%, while Vietnam faces a CVD of 2.84%. Although Vietnam's CVD is lower than India's, it is now also facing a preliminary anti-dumping duty of 35%, imposed in June 2025. Similarly, Thailand's CP Foods (Charoen Pokphand Foods PCL), one of the world's largest producers of feed and shrimp, has been hit with a preliminary ADD of 57.6%. In 2024-25, India exported marine products worth over $6 billion, with frozen shrimp accounting for a major share, according to data from the Marine Products Export Development Authority (MPEDA). In comparison, India imported seafood worth $13.76 million from the US in 2023-24, according to the commerce ministry. Also Read: Will India press for an early harvest in trade talks with US? 'The lowering of tariffs, especially CVD and ADD, would give a fillip to Indian shrimp exports. We hope the government will take up the issue during bilateral talks," said Pawan Kumar G., president, Seafood Exporters Association of India. Window of opportunity With the BTA negotiations entering a crucial phase, trade analysts see this as an opportunity for both sides to make coordinated changes that reduce trade friction. The 10% base tariff and the proposed additional 16% reciprocal tariff are expected to severely impact India's seafood exports to the US, as these products account for nearly a third of India's global seafood exports. India is projected to suffer a 20.2% decline, amounting to a $404.3 million loss, especially as Canadian seafood continues to enjoy duty-free access under the USMCA trade pact, said a report by the Global Trade Research Initiative (GTRI). Processed meat and fish exports are also expected to be hit hard, with estimated losses of $83.1 million, or 14.2%, as tariffs rise from 2.6% to 31.2%, the report added.
Mint
5 hours ago
- Mint
Israel-Iran war: Bitcoin rebounds to move past $1,00,000 mark despite Middle East tension; Where's it headed?
Bitcoin rebounded late Sunday, climbing back above $101,000 after earlier weekend losses, as investors reacted to U.S. and Israeli airstrikes targeting Iranian nuclear facilities. The world's largest cryptocurrency gained alongside gold and oil futures indicating that traders anticipate a limited conflict rather than a prolonged geopolitical crisis. Other cryptocurrencies also reacted in a similar manner. Although Bitcoin experienced a sell-off at the peak of the weekend news, traders made a comeback as risk appetite grew. The U.S., in coordination with Israel, conducted an operation involving over 125 aircraft and bunker-buster bombs, targeting facilities at Fordow, Natanz, and Isfahan. On Sunday, Bitcoin fell below the $99,000 level, marking its lowest point in over a month, while Ether saw a sharp decline of more than 10% at one stage. The broader cryptocurrency market reacted first to escalating geopolitical tensions, with Solana, XRP, and Dogecoin also experiencing significant losses, leading to a steep overall drop across the digital asset space. Over $1.04 billion was invested in spot bitcoin ETFs between Monday and Wednesday last week, based on CoinGlass data. However, inflows sharply declined as the weekend approached, with no net change on Thursday and only $6.4 million added on Friday — a drop that coincided with former President Donald Trump's early exit from the G7 summit and the launch of a two-week U.S. review of policy options regarding Iran. According to Avinash Shekhar, Co-Founder & CEO, Pi42, Bitcoin's rising dominance close to 63 percent reflects a clear shift in market sentiment as investors seek relative safety in the largest digital asset. ' The sharper fall in Ethereum and other altcoins compared to Bitcoin signals a risk-off approach from market participants amid global macro uncertainties and tightening liquidity. This phase highlights that institutional and retail capital is gravitating towards assets with stronger fundamentals and higher liquidity. At Pi42 we believe such market cycles are crucial reminders for investors to focus on quality projects with clear utility and long-term potential rather than chasing short-term market momentum,' Shekhar added. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
