We have stated in the previous columns that whenever multiple inquiries occur for the same loan application, it is treated as a single inquiry by the credit scoring model. This is regardless of the kind of the loan that has been applied for. It is understood that consumers shop around for the best deal whether they are looking for an automobile loan or a mortgage.
So when you apply for loans with multiple lenders for the same house or for the same purpose, it will be counted as one inquiry on your credit reports long as the inquiries take place within 14 days.
Owing to this fact, you should also not worry about the impact on your credit score.
Sometime a mortgage broker or an automobile dealer forward your loan application to multiple lender in order to find the best deal for you . this practice is called shotgunning. Multiple inquiries resulting from shotgunning will also be counted as one.
So whether you are looking for a car loan or a mortgage, do not hesitate in going to various lenders because you are worried about the impact on your credit score.