Whenever a person or company pulls your credit report, this is listed on the report as an inquiry. Some inquiries lower your credit score, but others do not affect it at all.
Types
The only type of credit inquiry that lowers your credit score is one generated in response to your application for credit. Credit scoring models do not factor in other inquiries, such as pre-approved offers of credit, inquiries you make on your own report and credit checks by organizations, such as employers and insurance companies.
Effects
According to FICO, one credit inquiry will reduce the average person's score by less than five points. Multiple inquiries can add up and make you look like a credit risk to potential lenders because it seems you are desperate for credit.
Time Frame
Credit scores ignore all inquiries made in the 30 days previous to the report being generated, so do not worry about the effects of previous inquiries when rate shopping. In addition, multiple inquiries made within a short time period are only treated as one inquiry. The time period is 14 or 45 days, depending on which FICO scoring model the lender uses.
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