THE IMPACT OF INQUIRES ON YOUR CREDIT REPORT

Obviously, the more inquiries on your credit file, the more adversely it will affect your rating. However, different inquiries have different degrees of influence. Below are details of some of the more common inquiries that occur and their impact. There are several other main variables that effect credit scores.

Apartments
Credit report inquires as a result of rental application do not affect your credit score.

When looking to rent an apartment, your credit is going to be pulled by either the landlord or the rental agency. They want to make sure that you will be a responsible tenant and will be looking for any sort of negative marks on your credit file. All of the information you list for your employers is also going to be checked, i.e. phone numbers and addresses. If you have poor credit, it is very likely that you will either be denied residency, or will be charged higher rent. You may also have to leave a larger deposit or have someone co-sign the lease for you .

Auto loans
Multiple inquiries as a result of auto loan applications will bring your credit score down.

The rates you receive for your financing are going to be determined by your credit score. However, lenders are not going to examine your entire credit history when determining whether or not to grant you approval. As an alternative, they rely on some fundamental information as well as your credit score. Obviously, higher scores are going to result in lower interest rates. If you have a poor credit score, but exhibit a recent positive credit history, you will likely receive decent rates. Someone with past and current bad credit are going to receive the least favorable rates.

Cell phones
Inquiries as a result of cell phone purchases will not show on your credit report as a negative mark.

Cell phone companies check your credit prior to deciding whether or not to issue you a plan. People with bad credit are likely going to have to leave larger downpayments and will also be charged higher rates for their contracts. It is important to know that there are now companies that offer cell phone contracts without credit checks.

Checking accounts
Your credit is not checked when looking to open a checking account at a bank. Therefore, there is no impact on your credit score when opening a checking account. Instead, your ChexSystems report will be reviewed by the bank. ChexSystems included records of all negative banking occurrences, i.e. bounced checks.

Child support enforcement agencies
This type of inquiry will have absolutely no impact on your credit score whatsoever. However, if you fail to make your obligated payments, your credit score will be damaged. 

Credit cards
Submitting applications for multiple credit cards will result in a lower credit score.

Not only are credit card approvals based on credit scores, the interest rates you receive are directly affected. Those with positive credit histories are going to receive the best rates. Reward credit cards usually call for the highest credit scores for approval. Nowadays, there are a wide variety of credit cards for people with bad credit that are designed for rebuilding credit.

Employers
There is no impact on your credit score when a potential employer checks it.

You must grant any potential employer written permission prior to them pulling your credit report. Any type of negative information is going to be looked for. If you are not going to be hired because of negative information listed on your credit report, you must be informed of this and provided with a copy of your credit report.

**Your current boss can also run your credit, but must must also have your permission to do so. Your credit will not be affected when this occurs.

Government assistance and licensing
Your credit is not affected when government agencies run your credit. However, a very thorough credit check will be done when applying for any type of government assistance or specific licensing.

Insurance
Insurance credit inquiries do not impact your credit score.

Did you know that over 85% of all auto insurance companies will utilize your credit information when deciding approval and rates. Therefore the better your credit, the better the rates you are offered.

Mortgages
Mortgage applications are reported to the credit bureaus and can result in a lower score.

Home loans are the largest type of loans. As a result, the review process is much more thorough.  All three of your credit reports and scores are going to be reviewed when you apply for any type of mortgage.

Student Loans
When you apply for federal loans, your credit is not checked. Your credit is checked occasionally when you apply for private student loans.

Utility Accounts
Inquiries from utility applications do not harm your credit score.

If you are looking to open a new phone, gas, electric, cable, or any other type of utility, your credit is going to be checked. People with bad credit may be required to have someone co-sign the account for them.


Related Reading:
Why You Should Run Your Credit Report Once a Year
Making Sure Your Credit Report is Accurate
Correcting Erroneous and Negative Information
What are the Hardest Items to Fix?
Credit Report FAQ
Things That Hurt Your Credit Score
Credit Report Secrets
How Long Do Negative Marks Stay On My Credit Report?

 

 



 

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