New Delhi, March 19 -- Credit inquiries are important to help you maintain your credit score to as high a number as possible. In India, there exist two distinct kinds of credit inquiries: Hard inquiries and Soft inquiries.

Both are for different purposes and have varying implications on your credit score, personal loans interest rates and associated terms. Here, we shall list and outline the five most important differences between hard and soft inquiries:

A hard pull or inquiry takes place when the lender pulls your credit report for the intent of determining whether you would be eligible to be extended a loan or credit account. It needs to be authorised and normally takes place when you request new credit, such as a credit card or pers...