| I wonder how a five-year-old kid formulates all his | | | | the future debtor's credit history. Using the information |
| questions within minutes. And it is ever so tiring to hear | | | | stated in his history, I will then be able to formulate |
| the same questions over and over again. Some of | | | | discernment on whether or not to give lend him money. |
| them you do not even know the answer, some might | | | | If I do not lend money to the person, instinctively, he will |
| sound so simplistic but now that a kid brought it up it | | | | approach other lenders and try his luck with them. And |
| seems more of a philosophical question. | | | | the lenders will do the same thing. They will check his |
| Inquiries are made about hundreds of thousands of | | | | credit worthiness based on his report and decide |
| times in a day. And the bureau people are not spared | | | | whether to give him a loan. |
| from these inquiries. Your credit information might just | | | | And for the nth time this person will look for another |
| become one of the sought after information, fueled by | | | | lender out of desperation. Succeeding lenders |
| the lending institutions you approach each day. Besides | | | | sometimes take the shortcut route and instead o |
| soft inquiry (which is comprised of creditor's inquiries on | | | | reviewing the whole credit report, they will first ask |
| the files of its customers, your counselor's inquiries | | | | how many credit inquiries this particular person |
| about your credit history which he can access with | | | | received in a specified span of time. Because the |
| your permission, and your own inquiry on your personal | | | | more "hard inquiries" (inquiries made by lenders) a |
| credit report) other forms of inquiries might just affect | | | | person receives about his credit history, it means that |
| your credit scores in the future. | | | | he approaches more lenders. And that might signal |
| The more credit inquiries a bureau receives, the | | | | that prospective lender that the person have not been |
| greater the risk for you to get lower credit scores. | | | | granted loans in the past. |
| What is the main logic behind warranting a lower credit | | | | Several reasons for not being granted a loan includes |
| score for people who accumulated more inquiries | | | | unworthiness on part of the person, delinquencies and |
| about his credit history? | | | | bad payment histories. |
| Suppose that I am a lender. And that being a lender, I | | | | So plan wisely on how to limit your credit inquiries. |
| will have to screen the people who want to borrow | | | | When asking for car quotes or entering mortgage |
| money from me. The best way to carry out this | | | | agreements, limit your choices so as to limit the credit |
| screening process is by asking the credit bureaus for | | | | inquiries as well. |