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Credit enquires reduce credit scores because statically studies shows that multiple enquiries are associated with the high risk of default. If you are looking to buy furniture on credit, buy a new car, get a mortgage on a new home, your credit is reviewed. When the lender reviewed your credit report it is considered an inquiry. Those inquiries count against you on your credit report.

They count against you because lenders think that you are looking around for credit and if you get all of the credit you may be high risk of default. That risk creates a problem for you. The credit bureaus will count that risk into their calculations on your credit score. It reflects negativity on your credit score.

Some people say that inquiries will not significantly hurt your score; if you do all your shopping for shorter period and other say they only affect your credit rating a little. But they do effect on your credit score and if you have a lot of inquiries, you will see a definite change in your credit score.

So try to minimize your credit inquiries. If you need a car, then I suggest that you must apply for any automobile loans. As a result you will get several inquiries all at once and will appear that you are “shopping” for a car loan. When the bureaus see a group of inquiries all at one time they group them together and this doesn’t reflect negativity on your credit ratings.

The same is true for other things as well, such as a Home Mortgage. If you apply at several mortgage places and they all run your credit, it will appear that you were shopping for a Home mortgage. The damage is greatly reduced.
Always remember if you get accepted for all credit then you will have a new problem. You will have a lot of “new credit”. This new credit will lower your score.