Credit Inquiries

Jb11 · ‎08-15-2013

Hi all,

I have a question regarding Inquires and how that affects my credit. I've recently applied for a personal loan through 3 different banks within a few days of each other. I am shopping for the lowest rate and I know that each of these banks will do a hard pull. I read in threads before how if you are shopping for Mortgage Loans that the Inquires are not added individually as they know you are shopping for the lowest rates. Does this apply to Personal Loans as well? Or have I just added 3 inquires to my credit report?

pizzadude · ‎08-15-2013

@Jb11 wrote:
Hi all,

I have a question regarding Inquires and how that affects my credit. I've recently applied for a personal loan through 3 different banks within a few days of each other. I am shopping for the lowest rate and I know that each of these banks will do a hard pull. I read in threads before how if you are shopping for Mortgage Loans that the Inquires are not added individually as they know you are shopping for the lowest rates. Does this apply to Personal Loans as well? Or have I just added 3 inquires to my credit report?

This only applies for Auto, Mortgage, and Student Loans. So you are correct, each of the inquiries will be scored separately.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX

Jb11 · ‎08-15-2013

Guess that leads me to my next question. I already had 1 inquiy from an Auto Loan, so how bad will 4 Inquiries hurt my score?

Anonymous · ‎08-15-2013

The inquiries really do not hurt your score that much unless your scores are way up there.

It is more what a lender likes to see, or not see, where inquiries are concerned. Some think 1 is too many,

RobertEG · ‎08-15-2013

+1

If your CR shows substantial debt, for example, then multiple inquiries may be viewed as needing more debt to handle current debt. Thus, perhaps an indication that you dont have the means to meet currrent obligations, and increasing your lending risk.

However, if your CR shows that your currrent debt is under conttol, seeking new debt may not be viewed negatively.

Jb11 · ‎08-19-2013

Well I just received a call form the last place I applied for a loan and he noticed the Inquiries and immediately asked what they were for. I told him I was Rate shopping. He said that was understandable and that I would hear back later toady. This is through a Credit Union so I hope they are a bit more lenient. Crossing my fingers.

If I do get denied for whatever reason, my guess it would be for the Inquires as my credit is good, DTI is less than 10%. When would it be good to try for the loan again with another bank?

Anonymous · ‎08-20-2013

If the only reason for denial with all three lenders is inquiries then you can do what we call "Recon". That is make a phone call to the credit institution and try to explain to someone with authority (usually a credit analyst) what the purpose for all the inquiries was. Reassure them you are only looking for one loan not three. Normally one of them will be able to override the initial decision.

If the denial is for other reasons (such as debt to income, length of credit history, etc.) then you will need to address these concerns or move down the ladder of quality lenders to one who will accept a riskier loan. Of course you will pay for this with interest rates charged.

Note that I am not suggesting that any of these qualities or reasons for denial apply to you personally or will be stated. Merely advice for anyone who finds themselves in the situation.

Anonymous · ‎09-11-2013

It depends on country to country but in general it applies to personal loans as well.