Some credit seekers, who urgently need money, ask themselves the question, how many credit inquiries can one make? And does the number of loan requests increase the prospect of actually obtaining a loan? Or is it harmful?
First, credit request is not credit request. It is important to distinguish between inquiring about the terms that would apply in the case of a loan and a genuine loan application, the most binding form of credit application.
With condition requests the expediency counts
For condition requests, it is generally recommended to submit several inquiries to different providers. Only then is a realistic comparison of conditions possible. The offers that are shown on comparison portals or banking websites are de facto only advertising. The above interest rates and other terms only refer to typical borrower examples. As a rule, good to very good credit ratings are assumed.
The offer in a specific case may look different, because here the individual creditworthiness of the prospect counts. If it differs from the example in advertising, other conditions apply. A higher risk of default is synonymous with higher interest rates and possibly additional requirements for hedging. Condition requests are reported to the private credit bureau, but they have no effect on the private credit bureau information. A bank other than the one requested does not know anything about the request and the private credit bureau score value is not affected by this as well.
How many loan requests can you make? For condition requests, the answer is theoretically, as many as you like. However, it certainly makes no sense to address a myriad of requests to banks. It is better and more efficient to make a preliminary selection from the offers shown or researched and then to send specific condition requests to some institutes. This makes the comparison clearer.
Loan applications – avoid parallel applications
The situation is different with the application. When a signed application is submitted to the bank, a “request credit” message is usually sent to the private credit bureau, and other banks will also receive credit requests for private credit bureau queries, provided that they are received within ten days of the entry. So it will be recognized if another loan has been applied for elsewhere. With several such loan requests within a short time also the private credit bureau score value deteriorates and with it the prospect of a loan.
Several “real” credit inquiries are therefore counterproductive. Here the question “How many credit inquiries can one make?” Leads to the answer: ideally first only once after a comparison of conditions. If the loan application is rejected, another application can be made elsewhere after a certain grace period. Worth waiting for.