Multiple Loan Enquiries And Lower Credit Score: Here's What You Need To Know

Credit Score 

For the approval of a loan, it is important to have a good credit score as lenders check it before approving the loan. 

Credit Inquiry

It is a situation where credit record is checked by a financial institution to determine how funds can be repaid. 

Types of Inquiries

There are two types of inquiries: one is a hard inquiry, and the other is a soft inquiry.

Impact of Multiple Inquiry On Credit Score

Multiple credit inquiries arise when one applies for two loans. 

Making Multiple Queries

In case there are multiple queries that are made for loans, lenders may get concerned about ones financial situation.

Single Inquiry 

Single inquiry can also have impact on the credit score and can make one appear risker. It can also reduce probability of loan acceptance. 

Keep In Mind 

One should not apply for more than one credit account at once and apply only when needed. 

Strong Credit Profile

One should also make a strong credit profile and check credit reports ahead of loan applications. 

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