How do credit inquiries affect my credit score?
@althea_dooley
Credit inquiries can affect your credit score, but the impact is usually minor and temporary. There are two types of credit inquiries: soft inquiries and hard inquiries.
Multiple hard inquiries within a short period can signal to lenders that you are seeking credit and may represent a higher credit risk. However, the credit scoring models differentiate between rate shopping for a single loan (e.g., mortgage or auto loan) versus shopping for multiple loans (e.g., multiple credit cards). For rate shopping, multiple inquiries within a 14 to 45-day period (depending on the scoring model) are generally counted as a single inquiry.
It's important to note that the impact of credit inquiries on your credit score is typically outweighed by other factors, such as your payment history and credit utilization.