When loan requests are made to a bank in the sense of an actual loan application, this issue is usually reported as “request credit” to the private credit. The private credit stores the message for one year before it is deleted. Loans often wonder if this affects their credit opportunities.
There are basically two ways to tell private credit credit inquiries, as a request “credit terms” or as a “request credit”. The request credit conditions is usually displayed when a potential borrower specifically inquires about the conditions applicable to him for a specific loan request. This can be done via a comparison portal, via a bank website or directly at the bank. Although such condition requests are also stored for one year, they are not recognizable for other banks that obtain private credit information and do not affect the private credit score value.
Recognizable and relevant for the credit rating
In many cases, such loan requests are therefore also referred to as “private credit-neutral” or “without private credit”. This is not quite correct, because the fact is still noted in the private credit. The credit opportunities remain unchanged. The message “request credit” looks different. This entry is also available for other banks for about ten days. In addition, the information flows into the private credit scoring process. With many such credit inquiries within a short time the scoring value and thus the private credit rating of the creditworthiness deteriorates. The prospects of actually receiving the loan are correspondingly lower.
Banks generally do not report the issue “request credit” until they have received a loan application signed by the creditor along with the required information and evidence. It is the most binding form of credit inquiry. There are good reasons why an inquiry loan can also be seen by other banks and has an impact on credit quality.
Consideration makes sense
If the request was not recognizable for other banks, a prospective loan applicant could successfully try to apply for credit at several banks at the same time in order to obtain credit when making a loan request. Above all, he could try to get more credit on this path than is actually justifiable. It is therefore understandable, if parallel loan applications worsen the credit rating, because the borrower nourishes doubts about his seriousness.
How the “request credit” message affects just the private credit score value remains a private credit business secret that keeps its score algorithms under strict control. But tests have shown that it does. It is therefore advisable to always make condition requests, compare them and then decide on a provider.