Excessive inquiries can negatively effect your credit rating. This is how. If numerous inquiries appear on your credit history, other lenders may see them as possible creditors that denied you credit. Assuming that, you can be turned down for credit you want. Numerous inquiries also make you look credit hungry, meaning you may be in financial trouble.
Smart creditors avoid people already in trouble.
Even if you get financing for an item, they may charge you a higher interest rate because you appear to be a risk. That can translate into some serious dollars, my friends. Never give your name to a retailer or auto salesman until you are ready to buy. Simply having your name can allow them to look for your financial information. Even if you haven't tried to purchase anything, a peek at your rating can give them some idea of how much you can afford of what they are selling.