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I had an experience that when I applied for loan it got sanctioned. But in the meantime when the proposal reached at my branch, I resigned from my Job for a better opportunity. In the enquiry, my resignation was highlighted as I was released from job but not on paper due to my pending leaves. I guess, this lead to misconception that I lied the information and the loan got rejected. The score dropped.
I am now a self employed and yet a possibility of rejection of another loan as a newcomer in the biz. I heard this would further low down the score. Should I try with two banks?
Actually the credit score has dropped because of the hard inquiry which has been made in your credit report when you have applied for the loan. Even if you have got qualified for the loan, your credit score would have dropped because of the hard inquiry.
Whether your second loan application would be rejected or not depends on your credit score. If you have a good score, it would not be rejected, else it can be rejected.
credit
MARY...I never knew, until I came to this forum, that your score can drop from 'Hard Inquiries'. I was trying to apply for 'new' credit ,several places, and was wondering why my score kept dropping. Anyway.........OP, each inquiry may drop your score a little bit, however,..if you have ALOT of 'Hard Inquiries' that can 'add up' in lowering your score even more.
Yes, each hard inquiry can lower your credit score by as much as 5 to 10 points and sometimes even more. This is because more and more hard inquiry implies that you are credit hungry which gives a negative image to your credit report and so your credit score drops. So whenever you find any unauthorized hard inquiry in your credit report, you should send letters to the inquirers and remove it from your report.