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When you apply for loans, credit cards, business credit, mortgage
etc, you authorize lenders to ask or inquire for a copy
of your credit report from a credit bureau. When you later check
your credit report, you may notice that their credit inquiries are
listed. You may also see listed there inquiries by businesses that
you don't know.
Does applying for credit affect my
FICO score?
Yes. Research shows that opening several credit accounts
in a short period of time represents greater credit risk.
How much will credit inquiries affect
my score?
Inquiries
can have a greater impact if you have few accounts or a short credit
history. Large numbers of inquiries also mean greater risk. People with three inquiries or more on their credit reports can be
up to eight times more likely to declare bankruptcy than people
with no inquiries on their reports.
Why should I remove my inquiries ?
Taking each one off will raise your score and make your credit appear, overall, less risky to lenders and creditors. |
