Too many credit inquiries When Elass first started applying she was receiving offers for loans with 7.5 percent interest rates and no points. Several weeks later the offers were for loans with 8.5 percent interest rates and three points. As the loan offers got worse and worse, Elass contacted lenders to find out what was going on. When you apply for a loan, you give a lender permission to pull a copy of your credit report. Each time a lender peeks at your credit history an inquiry appears on your report.
Frequent inquiries can be a sign of iffy credit.
Elass believes that credit scoring models should be updated to allow for consumers' Web surfing habits. She makes her case in a study released by Gartner Group. In the offline world you don't usually apply for a loan unless you're serious. You don't know what rate you qualify for unless you apply. Twelve million consumers used the Internet when shopping for loans in 2000, according to Gartner Group.