Number of Inquiries (Credit Report)
What does it mean
Number of Inquiries means the number of times an individual’s credit report as been pulled in the recent past. More inquiries are viewed negatively and less inquires are viewed positively.
Why does it matter
A person’s credit score impacts many areas of life, and having an understanding of the items that influence this score will help to differentiate you amongst your competition. The reason the number of inquiries impacts your credit score is because it is a sign of need and/or desperation. A person having financial issues is more likely to apply for credit, and to apply at multiple places in a short period of time. Due to this, more inquires has a negative impact on a person’s credit score.
Please note one exception to this would be multiple inquires in order to finance the same purchase. Credit Bureaus do not want to pressure borrowers to not shop around. In the event you are shopping for a mortgage loan or auto loan, as long as the purpose is the same and the inquiries occur in a short period of time, they will only have the impact of a single inquiry rather than as if multiple reports were pulled.
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