Can I get a loan if there are too many credit inquiries?
This depends on whether it is a soft inquiry or a hard inquiry. If it is a soft inquiry, it will have little impact on the loan, but if it is a hard inquiry, it will be more trouble.
The so-called hard inquiries refer to inquiry records such as credit card approval, loan approval, and guarantee qualification review. If there are too many such inquiries, the first impression given is that the lender is frantically looking for money. , that is to say, there is a strong hunger for funds, borrowing money everywhere, and the capital chain is quite tight. When loan approving officers see these inquiry records, they will definitely not easily approve them.
Loan is a form of credit activity in which banks or other financial institutions lend monetary funds according to certain interest rates and must be returned. Loans in a broad sense refer to the general term for lending funds such as loans, discounts, and overdrafts.
Banks invest the concentrated currency and monetary funds through loans, which can meet the society's need for supplementary funds to expand reproduction and promote economic development. At the same time, banks can also obtain loan interest income. , increasing the bank’s own accumulation.
Basic provisions for loans
Loan targets: Chinese citizens aged 18 to 60 with full capacity for civil conduct.
Loan limit: After the borrower provides a pledge, mortgage, third-party guarantee approved by China Construction Bank or has certain credit qualifications, the bank will determine the borrower's corresponding pledge limit, mortgage limit, guarantee limit or credit limit.
The pledge amount shall not exceed 90% of the face value of the pledge rights certificate provided by the borrower; the mortgage amount shall not exceed 70% of the assessed value of the collateral; the credit limit and guarantee limit shall be determined according to the borrower's credit rating.
Guarantee method: in the form of mortgage, pledge, third-party guarantee or credit approved by China Construction Bank.
Required application materials:
(1) The written document required by the borrower to obtain the guarantee amount from the guarantor agreeing to provide guarantee.
(2) Credibility certification materials of the guarantor.
(3) Evaluation report of the collateral issued by a socially recognized evaluation department.
(4) Other documents and information specified by China Construction Bank.
(5) Original and copy of the borrower’s valid identity document.
(6) Proof of local permanent residence or valid residence status.
(7) The borrower shall present the income certificate issued by the employer, the borrower’s tax bill and insurance policy.
(8) The borrower obtains the pledge rights, mortgage list and ownership certification documents required for the pledge and mortgage amount, and the written document of the owner and property owner agreeing to the pledge and mortgage.
(9) The borrower also needs to provide the payment receipt for the water and electricity property at the company's site and the payment receipt for the water and electricity property at the personal address. Will too many credit inquiries affect my loan?
The number of queries is small and has no impact.
If there are too many credit inquiries, it can reflect from one aspect that the customer's potential debt pressure is greater and the customer's potential risk is higher. Secondly, within a period of time, the customer authorizes other institutions to frequently query personal credit reports.
However, the report does not show that the customer obtained a loan or credit card, which proves that other institutions believe that the customer's financial situation is not good and choose not to approve it. Then, it is also a reminder for subsequent inquiry institutions, which is basically very simple. It is difficult to apply successfully again.
Extended information:
Currently, everyone has two opportunities to query for free every year. You can choose once in the first half of the year and once in the second half of the year, so that abnormalities, errors, and omissions in the report can be discovered in a timely manner. information. If you apply for online loans or credit cards, it is recommended not to apply more than 5 times a month. More than this is considered too frequent.
According to Article 16 of the "Credit Reporting Industry Management Regulations", the credit reporting agency's retention period for personal bad information is 5 years from the date of termination of the bad behavior or event. If it exceeds 5 years, should be deleted.
The starting point of 5 years referred to here is from the date the bad behavior or incident terminates, not from the date the bad behavior occurs.
In other words, if a loan is overdue, it can only be deleted after 5 years after the debt is repaid, instead of being automatically deleted after 5 years from the overdue date.
When the information in the personal credit report is incorrect, there are two ways to deal with it: bring the original and copy of your valid ID and personal credit report to the local branch of the People's Bank of China to submit an objection application; Or contact your bank directly.
After receiving the objection application, the Credit Information Center of the People's Bank of China and the handling bank will immediately verify the objection application, correct the incorrect information, and respond within 20 days.
After problems appear in the credit report, citizens will face the following consequences
1. Lending services are affected. After there are stains on the credit report, financial institutions will think that the person will have a greater chance of being unable to repay the loan. To reduce their own borrowing risk, financial institutions will refuse to lend to this person.
2 Affect your own consumption. If the borrower has serious overdue repayments, the court may put the borrower on the list of dishonest persons subject to enforcement and prohibit the borrower from making high-value purchases in hotels, karaoke bars and other places with star ratings or above.
3 affects job hunting. In modern society, personal credit is becoming more and more important. When recruiting, many employers will require job applicants to have personal credit. If there are credit stains on a job seeker's credit report, the employer will most likely reject the job seeker's application.
4 Personal credit information online inquiries will leave inquiry records. Too many inquiry records will affect the application for loans or credit cards. Generally, personal inquiries should not exceed 2 times a year, and institutional inquiries should not exceed 6 times a year. In particular, there are many inquiries from institutions, but whether you have successfully applied for a credit card or loan in your name will further affect your personal credit. In addition, online personal credit report inquiry records will generally be deleted after 5 years. Do not easily check personal credit report reports unless necessary. Will too many credit inquiries affect my loan?
More than 5 inquiries in 1 month and 10 inquiries in 3 months will affect your credit report.
Post-loan management is just a routine practice by banks to eliminate risks. It is a normal inquiry. The inquiry records left behind are neutral records and will not directly affect credit reporting. But if there are too many post-loan managements, for example, the same bank conducts post-loan management every month, it will be more troublesome. The applicant will be suspected of poor financial status, which will have an impact on the credit report.
However, as long as you are not habitually overdue, do not use cards illegally, and do not frequently apply for cards or loans, or apply for credit limit increases, etc., this situation is relatively rare. There are three types of inquiries that really have an impact on credit reporting: loan approval, credit card approval, and guarantee qualification review.
These three types of inquiry records are hard inquiry records and are directly related to personal credit reports. If the number of inquiries exceeds 5 times in one month and more than 10 times in 3 months, it means that the borrower's funds are relatively tight. , that’s why you apply for cards and loans so frequently. If you want to obtain capital turnover through applying for cards and loans, the success rate will be relatively low.
So, how to eliminate it?
The inquiry record left by the post-loan management inquiry and credit investigation will not be deleted for a while, and it will take at least 2 years.
If you need to apply for a card or loan during this period, you can still apply, but the frequency should not be too high. It is best not to apply more than 3 times in a month. The key is to meet the application conditions, have no other bad personal credit records, and maintain a low debt ratio.
Post-loan management refers to the entire process of credit management from the issuance of a loan or other credit business to the recovery of principal and interest or the end of credit. It is the final link of credit management. Post-loan management is mainly to prevent and control risks, avoid bad loans, and ensure the safety of loans.
Although post-loan management will be displayed on the credit report, it generally does not affect the credit report. After all, what generally affects your credit report are bad credit records such as overdue credit, tx
, and bad debts.
Or you may have applied for too many loans or credit cards, resulting in too many credit inquiry records and a waste of credit, which will also affect your credit to a certain extent.
However, the main factors that lead to changes in credit reporting are loan approval, credit card approval, guarantee approval, etc., and post-loan management is mainly a routine inspection conducted by financial institutions for risk control. Therefore, compared with other reasons for inquiries, credit reporting is It won't have any impact.