Credit checks when borrowing impair credit rating?

[terry]

One facet of borrowing that is very hard to understand.
Apparently it is true in Canada and the UK that each time you make an
enquiry about obtaining a loan the financial institution/s one
pproaches may do a credit check; in fact one would expect them,
sensibly, to do so!
Each check can 'cost you' points and impair your credit score?
That is very hard to understand; as a prudent borrower I would be
looking for the best interest and loan repayment terms available to
me.
Any loaning company should surely appreciate that I am being cautious
and careful and therefore most (more than an imprudent or impetuous
borrower) likely to repay the loan?
Any comments or advice?
terry

[Mark Goodge]

On Sat, 16 Feb 2008 23:15:05 -0800 (PST), terry put finger to keyboard

Post by terry
One facet of borrowing that is very hard to understand.
Apparently it is true in Canada and the UK that each time you make an
enquiry about obtaining a loan the financial institution/s one
pproaches may do a credit check; in fact one would expect them,
sensibly, to do so!
Each check can 'cost you' points and impair your credit score?
That is very hard to understand; as a prudent borrower I would be
looking for the best interest and loan repayment terms available to
me.
Any loaning company should surely appreciate that I am being cautious
and careful and therefore most (more than an imprudent or impetuous
borrower) likely to repay the loan?
Any comments or advice?

You don't get credit checked when you make an enquiry, you get credit
checked when you make an application. So you can still shop around and
find the best deal without penalty, as you won't be making an
application until you've decided which product you want. Yu would only
make multiple applications if you wanted multiple loans, which would
be rather unusual and certainly worth noting.

The reason why financial records record credit applications is that an
unusually large number of applications in a short period of time can
be an early indicator of possible fraudulent intent - someone may be
deliberately racking up lots of credit with the intention of doing a
runner with the money.

Mark

[terry]

Post by Mark Goodge
On Sat, 16 Feb 2008 23:15:05 -0800 (PST), terry put finger to keyboard

Post by terry
One facet of borrowing that is very hard to understand.
Apparently it is true in Canada and the UK that each time you make an
enquiry about obtaining a loan the financial institution/s one
pproaches may do a credit check; in fact one would expect them,
sensibly, to do so!
Each check can 'cost you' points and impair your credit score?
That is very hard to understand; as a prudent borrower I would be
looking for the best interest and loan repayment terms available to
me.
Any loaning company should surely appreciate that I am being cautious
and careful and therefore most (more than an imprudent or impetuous
borrower) likely to repay the loan?
Any comments or advice?

You don't get credit checked when you make an enquiry, you get credit
checked when you make an application. So you can still shop around and
find the best deal without penalty, as you won't be making an
application until you've decided which product you want. Yu would only
make multiple applications if you wanted multiple loans, which would
be rather unusual and certainly worth noting.
The reason why financial records record credit applications is that an
unusually large number of applications in a short period of time can
be an early indicator of possible fraudulent intent - someone may be
deliberately racking up lots of credit with the intention of doing a
runner with the money.
Mark
--http://www.BritishSurnames.co.uk- What does your surname say about you?
"And when you play you feel all right"

Thank you Mark. Reassuring; not that I'm in the market at the moment;
just about retired my line of credit, unless borrow for investment.

However just came across this; a Direct Quote copied and pasted from a
North American loaning agency!!

"Do you authorize us to check your credit? No - Yes (Must be "Yes"
to get a loan)"

Cheers.