What is a credit enquiry?
When you apply for a credit card, loan, buy now pay later account, or sometimes a phone or utility account, the provider checks your credit file. That application is recorded as an enquiry, along with the type of credit and the amount.
How long enquiries stay
Credit enquiries stay on your file for five years. The Government's review of the credit reporting framework has recommended reducing this, but for now the five year period applies.
Do enquiries hurt your score?
They can. One or two applications are normal. Lots of applications in a short time can look like you are under financial pressure, and may lower your score or make lenders more cautious.
Checking your own file is different
Requesting your own credit report does not count as a credit enquiry and does not affect your score.
Can an enquiry be removed?
Only if it is wrong, for example if you did not apply, it was made fraudulently, or the details are incorrect. If you did apply, the enquiry is accurate and stays, even if you were declined or changed your mind.
Tips to avoid unnecessary enquiries
- Check your eligibility before applying
- Avoid applying with several lenders at once
- Be careful with online quote tools that run a full credit check
- Talk to a broker or adviser who can match you to suitable lenders first