When applying for loans with multiple banks, it does affect your credit score. Banks run credit inquiries to check your credit score and report, and each inquiry lowers your score. There are two types of inquiries: hard and soft. Hard inquiries, which involve obtaining your credit report, can stay on your report for over two years. Soft inquiries, on the other hand, don't affect your score. Applying for loans can initially lower your score, but making timely payments can help build a good credit report. Applying to multiple banks within a short period can temporarily improve your score, but doing so outside of this window may raise concerns for lenders.
from Times of India https://ift.tt/NBtGScJ
from Times of India https://ift.tt/NBtGScJ