What is Credit Inquiry?
As the name suggests, credit inquiries are the nomenclature used when someone withdraws your credit report for review. There are two main types of inquiries: inquiries that are only seen by you, and inquiries that are seen by everyone who reviews your credit report. Only the last one affects your credit score.While many inquiries make a greater impact on your credit score, many inquiries in the same 2-week period are usually only counted as one inquiry. The credit bureau starts doing this after customers start complaining that their scores are down 20-30 points in one weekend shopping car (often when you are looking for financing for a new car, the dealer will make 20+ inquiries).
This provides an important tip: when you are looking for credit (filling out a credit card application, for example), do it in a "burst". If you are going to apply for 5 credit cards, minimize the impact of the credit score by doing it all on the same day and then wait a few months (if you don't succeed first) to do it again. Credit inquiries show the credit bureau that you really need credit because you cannot fulfill your current obligations. This is why they lower your score.
Credit inquiry will affect your credit score.
Inquiries types that do not affect your score
- Attracting your own credit report is not visible to anyone but you.
- Inquiries about pre-approval offers for example "You have been approved before!" What you receive by post.
- SOME credit inquiries are made by debt collectors.
Types of inquiries that affect your score
- Inquiries are made by creditors when applying for credit.
- Inquiries raised by cell phone companies when you apply for cell phones.
- Inquiries car dealers.
- Misc other application loans (such as home loans).
