1. Effect of Credit Inquiry
When you apply for a personal loan, the bank runs a hard inquiry, or a hard pull, on your credit report to judge whether you have adequate creditworthiness for the loan. In itself, this will reduce your score by some negligible points while it is in force only for some time. But the impact can be more pronounced if multiple hard inquiries are carried out within an incredibly short space of time as that may inform the lenders that you are in a financial crisis.
1. Effect of Credit Inquiry
When you apply for a personal loan, the bank runs a hard inquiry, or a hard pull, on your credit report to judge whether you have adequate creditworthiness for the loan. In itself, this will reduce your score by some negligible points while it is in force only for some time. But the impact can be more pronounced if multiple hard inquiries are carried out within an incredibly short space of time as that may inform the lenders that you are in a financial crisis.