It is well known and understood that the creditor makes an enquiry for a consumer’s credit report when the consumer makes an application for credit.
A lesser known fact is that your existing creditors with whom you have a working credit account with may continue to make enquiries into your credit report in the future for the purposes of verification and updating your account. These kind of enquiries made by existing lenders into your credit report do not get counted towards the calculation of your credit score. You will be able to see the enquiries made by your existing lenders on your personal copy of the credit report but the same will not be shown to other lenders in their copy., example of an existing lender making an enquiry into one of his customers credit report says that of a credit card company. Whenever a credit card company has to extend a special offer to the cardholder such as an increase in the credit limit or a lower interest rate they checked the credit history of the customer. Checking the credit history of customers may also be done periodically by the lender in order to keep updating the account.
Enquiries have a minimal impact on the credit score of a consumer who has a good credit history. While enquiries made the existing lenders will not count towards the final calculation of the credit score if other negative information is already impacting the credit history of the consumer, fresh enquiries made due to application for new credit will impact the credit score and for a person who is suffering from a marginal credit rating may prove to be quite disadvantageous.
Enquiries on their own very rarely the reason for approval of the disapproval of a credit rating. But for a person who is already suffering from negative information on the credit report presents of multiple enquiries due to new applications were credit might signify that the consumer is trying to take on more debt which he may be unable to pay off in the future.