If too many credit inquiries are reported to the credit bureau within a short time, this can have a negative effect on your credit chances. You should know this when making loan applications. Because with a bad credit bureau rating your creditworthiness automatically decreases and with it the probability to receive your desired credit.
To understand how this works, it is helpful to look more closely at credit inquiry messages at credit bureau. There are basically two types of messages: the “request credit terms” (KK) and the “request credit” (AK). KK notifications are always made when you inquire about the specific credit conditions that apply to your case via comparison portals or online appearances of banks.
Loan inquiries – credit bureau-harmful or not?
To do this, you usually need to make a credit request and provide information about yourself, your professional position and your economic circumstances. As a result, you will receive a tailor-made (non-binding) offer. Such credit inquiries are harmless to credit bureau. Although there is a credit bureau message for every request, this is not recognizable for other banks. It is also not included in the calculation of your credit bureau Score value. So theoretically, you can initiate as many credit requests as you want, their credit bureau rating does not change.
The situation is different with AK notifications. These usually take place when you make a concrete loan application – a loan request in the narrower sense. To do this, you must submit a signed application to the bank and provide evidence (salary statements, account statements, etc.) of the information you have provided. This process is reported as a “request credit”. The entry is also visible for about ten days to other banks that perform a credit bureau query. If you submit loan applications to several banks within a short period of time, the institutions will find out.
In addition, this fact is taken into account in the calculation of the credit bureau Score value. Your credit rating deteriorates. Exactly how the scoring process is structured and the role played by too many loan inquiries at credit bureau remains a well-kept business secret of the directory assistance company. However, practical tests have shown that AK messages obviously have a negative effect on the credit bureau score value.
Do not apply for credit until the bank has been determined
As a prospective loaner, you can make little difference to the notification and the scoring consideration. But you should make sure that you actually do not apply for a loan until you have chosen a particular provider. Such a decision is possible if you have previously made various condition requests and thus identified the bank with the best terms. Then do not run the risk that too many credit inquiries will be reported to the credit bureau.