New Delhi, March 5 -- Unlike a soft inquiry which is carried out when you check your credit score, a hard inquiry happens when you apply for a loan. This leads to an adverse impact on your credit score, albeit temporarily.

It is for this reason that it borrowers are recommended to apply for multiple loans within a short span of time.

A hard inquiry takes place when your bank checks your credit score when you apply for a loan. If you ever applied for a loan, then you may have received several phone calls soon from banks offering your loans. This happens because the lender puts your profile under credit check before taking a decision.

It is believed that hard inquiry leads to the loss of credit score, albeit temporarily. And it shows on ...