What is a credit enquiry
When you apply for finance with us for a personal loan or payment plan, a credit enquiry is the step where we check your credit report to decide whether to lend you money.
WHAT HAPPENS DURING A CREDIT ENQUIRY
When we make an enquiry with the credit report they provide us a report that contain the following.
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Your credit history (past loans, credit cards, repayments)
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Shows if you’ve paid bills on time
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We see how much debt you already have borrowed
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Our enquiry itself gets recorded on your credit file
WHY DOES IT MATTER
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This type of enquiry is known as a hard enquiry
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It can slightly lower your credit score
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One or two enquiries is normal and usually fine
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Many applications or enquiries in a short time can be a red flag 🚩 to lenders
A credit enquiry for a loan is simply part of the approval process—it helps us decide if lending to you is a safe risk.