What is a credit enquiry?

A credit enquiry may be added to your Credit Report when a lender conducts a credit check on you as part of an application for credit. It is listed on your Credit Report as a 'credit enquiry'.

A credit enquiry may include the date, the type of credit you have applied for (a personal loan, credit card, mortgage or phone contract), whether you are a sole or joint borrower (including acting as a guarantor for another loan), as well as the amount.

See below for an example of how a credit enquiry works in the real world.

David is buying a new car and he applies for a car loan with ABC Car Finance. David completes his application form and as part of the assessment on whether to accept his application, the credit provider conducts a credit enquiry.

As a result of this credit check, David's application for a car loan will be recorded on his Credit Report. It is important to note the application is recorded on David’s Credit Report – and that this information remains on his Credit Report for five years – no matter what happens. Even if David doesn’t proceed to take out a loan from ABC Car Finance, the fact he applied for one remains on his Credit Report and may affect his Credit Score.