Does anyone know why a credit inquiry dings your credit score?

Does anyone know why a credit inquiry dings your credit score? We applied for an auto loan online and it seems like 4 banks have run our credit 10 times each. My score has dropped a lot!

3 Answers

There is one possible reason. Hard inquiries are made when the creditors view your credit report. Now, in most times, the creditors view your credit report when you apply for loans or credit cards. Numerous creditors will view your credit report when you have made multiple applications. And one normally makes numerous applications when there is a high chance of rejection. This means you're a risky borrower or something.


I have no idea as to why the credit inquiries hurt your credit score. But, i know that it does; though only the hard inquiries do. It is always better to apply for several loans (if required) within same time. Hard inquiries made within 15 days within is not supposed to hurt your credit score that much.


Check this site. You may gain knowledge on what you've inquired. "http://www.myfico.com/crediteducation/questions/inquiry-credit-score.aspx"


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