A credit enquiry is a record on your credit file that shows any loans or credit you’ve applied for, including the amount, the lender, and the date of the application. It does not indicate whether the loan was approved or if you proceeded with it. Multiple enquiries, even from simply asking banks about your borrowing capacity, can negatively impact your credit score, as some banks may view a busy credit file as a risk.

Many banks may decline your loan application if you have as few as one or two enquiries on your credit file within the last six months. This is because a busy credit file can signal higher risk to lenders. Applying to multiple lenders in hopes of approval can do more harm than good.

Only apply for a loan with the lender you intend to borrow from. Avoid submitting multiple applications, as this can negatively affect your credit score.

Yes, some lenders may still approve your loan despite multiple enquiries, but you’ll need to provide a reasonable explanation and cheque account statements to clarify which loans proceeded and which did not.

Most major banks and mortgage insurers use credit scoring to evaluate loan applications. However, some lenders rely on manual credit assessments, which allow them to use common sense in approving loans that may not pass automated scoring.

Each lender has a unique credit scoring system, so outcomes may vary. For example, some lenders are more lenient about a high number of enquiries, while others may decline your application based on factors like the length of time in your current job.