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Inquiries
Recent inquiries concern creditors because they may indicate you have added debt they don't know about because there it hasn't yet been reported to the credit bureau.
That's why you often are asked to explain recent inquiries when you apply for a mortgage.
The phrase "too many inquiries" is tossed around a lot, but really is a very minor factor. It refers to recent inquiries and may mean as few as two or three in the past month. The older the inquiry, the less important it is.
Your creditors only see inquiries from credit transactions you initiate. Inquiries resulting from preapproved credit offers aren't provided to creditors and don't affect your creditworthiness.
Inquiries alone will never cause you to be declined. While inquiries may have a negative impact on credit scores, only when there are other significant issues with your credit history, such as late payments or collection accounts, will that negative impact be significant enough to cause adverse action by the lender. The other negative information will invariably have a greater impact on credit scores than inquiries.
Credit scoring systems also recognize inquiries for mortgage and auto lending purposes. Because people shop for the best rates when making a home or auto purchase, credit scoring systems count inquiries for those reasons that occur with a short period of time, usually 30 days, as only one inquiry.
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