Credit Inquiry

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Dictionary Says

Definition of 'Credit Inquiry'

A transaction whereby a bank or other credit-issuing institution views an individual’s credit report in connection with a loan or credit card application. The purpose of a credit inquiry is to evaluate an individual’s likelihood to repay money that is lent to them (known as creditworthiness).

There are two main types of credit inquiries - a “soft” inquiry and a “hard” inquiry. A soft inquiry is normally initiated by the individual (such as checking one’s own credit report for errors) and is not recorded on the individual’s credit report. A hard inquiry is recorded on an individual’s credit report when a third party views the credit report in response to an application for credit.

Investopedia Says

Investopedia explains 'Credit Inquiry'

Hard inquiries remain on one’s credit report for two years. Having too many hard inquiries is detrimental to one’s credit score because it may be interpreted as an individual attempting to greatly expand the amount of credit available. This is an indicator that one may be intending to expand the amount of debt outstanding, which is considered to increase the risk that a borrower will not repay a loan.

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'Credit Inquiry'

  • Credit And Debt Management: Credit Reports And Scores ...

    http://www.investopedia.com/university/credit-debt-management/management1.asp
    ... repay debt); Too many inquiries (a credit inquiry occurs any time you apply
    for a new loan or line of credit (LOC)); Charge-offs. One ...

  • Credit Cards: Choosing A Credit Card | Investopedia

    http://www.investopedia.com/university/credit-cards/credit-cards7.asp
    ... Applying for the card can count as a “hard” inquiry on your credit report. Too many
    of these inquires on your report can lower your FICO credit score. ...

  • The Truth About Store Credit Cards - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1210/The-Truth-About-Store-Credit-Cards.aspx
    ... Known as a "hard inquiry" on your credit file, experts estimate that they
    can impact your credit score by as much as 30 points. ...

  • Why did the Department of Justice launch an inquiry into the sale ...

    http://www.investopedia.com/ask/answers/09/imclone-martha-stewart.asp
    ... her broker, Merrill Lynch's Peter Bacanovic, so the Department of Justice launched
    an inquiry. ... Should I pay my mortgage with my credit card to earn credit card ...

  • How can I improve my credit score?

    http://www.investopedia.com/ask/answers/07/improve-credit-score.asp
    ... Before a creditor approves you, or someone pretending to be you, for an account,
    they will make an inquiry which will be noted on your credit report. ...

  • A Lifeline For Those Drowning In Debt

    http://www.investopedia.com/articles/pf/07/credit-debt-options.asp
    ... payments. In response to the Congressional inquiry, large credit card
    companies voluntarily changed some practices. Despite this ...

  • Sometimes It Pays To Borrow From Your 401(k)

    http://www.investopedia.com/articles/retirement/08/borrow-from-401k-loan.asp
    ... applications or credit checks. Normally, it does not generate an inquiry
    against your credit or affect your credit rating. Many 401(k ...

  • Stimulus Spending: When It Fails And Why - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0609/Stimulus-Spending-The-Downside.aspx
    ... When Adam Smith wrote his landmark book, "An Inquiry Into the Nature and Causes
    of the ... If you were to go out, load up all your credit cards and exhaust every ...

  • Adam Smith And "The Wealth Of Nations"

    http://www.investopedia.com/articles/economics/09/adam-smith-wealth-of-nations.asp
    ... (For background reading, see Adam Smith: The Father Of Economics.) In Opposition
    to Mercantilism On March 9, 1776, "An Inquiry into the Nature and Causes of ...

  • Water Cooler Finance: Crying Over Spilled Oil, And Buffett Goes To ...

    http://financialedge.investopedia.com/financial-edge/0510/Water-Cooler-Finance-Crying-Over-Spilled-Oil-And-Buffett-Goes-To-Court.aspx
    ... crisis and, more specifically, to assess the role the credit rating industry ... the
    public eye, he reportedly resisted attending the commission inquiry until he ...

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