Definition
The credit check that happens when you apply for a loan or card. Each one can trim a few points from your score for a while; rate-shopping for the same loan type within a short window typically counts as one inquiry.
Why it matters
Inquiries are the smallest scoring factor but the most feared; the real risk is a burst of applications reading as desperation. The rate-shopping window means comparing mortgage lenders properly costs one inquiry, not five.
Example
A buyer gets quotes from four mortgage lenders inside two weeks; scoring models treat them as one inquiry. Opening three store cards over the holidays, by contrast, is three separate dings plus three new accounts.
Related terms
This definition is educational, not financial, legal, or tax advice. U.S. rules and limits change; verify time-sensitive details with official sources. See our disclaimer.