Anytime that you apply for any type of credit card or loan, inquiries are made into your credit score. Some employers will even check your credit when you apply for a job, your credit might be checked when you purchase insurance and it is often checked when you lease a home.
If you’re in the market for a new car and have applied for loans at several dealerships, each one will inquire about your credit rating. All of these inquiries will soon add up to create a negative impact on your credit history. Lenders will view these inquiries as a sign that you have excessive activity.
They will presume that you are desperate to get a loan or a credit card and are being turned down every where else. Depending on the lender, as few as four inquiries that are made within a six month period can keep you from getting approved.
If you’re planning on trying to obtain a loan in the near future, avoid having any inquiries made into your history. Whether you obtain the loan or change your mind and cancel your application, it still counts as an inquiry and still counts against you.
