Definition
A credit enquiry is a record on a credit file showing that a lender checked the file in connection with an application for credit. Enquiries usually show the type of credit and amount applied for. Several enquiries in a short period can make lenders cautious, because they may suggest financial stress or repeated declines. Checking your own credit report is not a credit enquiry.
Every formal application for credit usually leaves a footprint on your credit file. That footprint is the credit enquiry.
Why enquiries matter
One or two enquiries are normal. Many in a short time can concern lenders, because they may suggest the business is struggling to get finance or is taking on a lot of new debt. Some scoring models also weigh recent enquiries.
Apply strategically
Research first, then apply where you are most likely to be approved. Avoid sending applications to several lenders at once. Our guide to improving approval chances explains how.
Checking your own file
Checking your own report is not recorded as a lender enquiry. The OAIC explains your access rights. And if you want to explore options without an enquiry, make one enquiry with us; there is no credit check at that first step.
Common questions
Does enquiring with Business Loan Reviews create a credit enquiry?
No. There is no credit check when you first enquire. A credit check only happens later if you decide to apply, and you will be asked first.
How long do enquiries stay on a credit file?
Credit enquiry information is generally retained for several years. The OAIC explains retention periods.
Sources and further reading