Quick answer
A credit enquiry is a record placed on your credit report each time a credit provider requests that report because you've applied for credit, including business credit you've personally applied for or guaranteed. It shows who asked, when, and the type and amount of credit sought. In Australia an enquiry stays on your file for five years, and several in a short period can lower your score and worry lenders.
Key points
- Recorded whenever a lender obtains your report for a consumer or commercial credit application
- Each one lists the lender, the date, the credit type and the amount applied for, and stays five years
- Enquiries and applications carry the heaviest weighting in the Equifax score, at about 40%
- Checking your own report doesn't count against you
Think of a credit enquiry as a footprint. Whenever a lender requests your file from a bureau because you’ve applied for credit, a line is added to that report recording the visit. It doesn’t say whether you were approved. It just shows that you went looking.
What does a credit enquiry show?
According to the OAIC, each enquiry records the credit provider that asked, the date, the type of credit you applied for and the amount. Commercial applications count too: if you apply as a sole trader, or a lender checks you as a director or guarantor of a company loan, the enquiry lands on your personal file. Lenders that check a company may also log an enquiry on its separate commercial file.
Equifax, the largest bureau, gives enquiries and applications about 40% of the weighting in its personal score. Repayment history is close behind at roughly 38%. Few owners realise that the act of applying weighs about as much as their whole record of paying on time.
Why does the count matter to a lender?
One enquiry is normal. Five inside a month tells the next lender something it wants to understand: either the business needs money badly, or earlier lenders looked and walked away. Neither is automatically disqualifying, but both invite questions.
The pattern matters as much as the count. Three enquiries spread across three years for a car loan, a home loan and an equipment lease look routine. Three in one fortnight, each for a $100k unsecured business loan, look like a rush.
Worked example: the fortnight of applications
Daniel, who owns a joinery in Newcastle, needs $80k for a CNC router. His bank says it will take a few weeks, so he applies online with four other lenders over ten days to speed things along. Two decline, one makes an offer he doesn’t like, and one never replies.
By the time the bank’s assessor opens his file, it shows five new enquiries in under a fortnight. The assessor now wants an explanation for each, which slows the bank down further. Daniel’s credit score has also slipped, because enquiries carry so much weight.
A better sequence would have been one conversation with someone who could see which lender’s criteria fit before any report was pulled, then one or two targeted applications. If enquiries are already stacked on your file, our page on business loans with too many credit enquiries explains which lenders look past them. You can also tell us what you need without a credit check.
Enquiry or check? The terms around it
Owners hear several phrases that sound alike. A credit check is the lender reading your report; the enquiry is the record it leaves. Your credit file is everything the bureau holds about you, and your credit score is the number calculated from it. Since comprehensive credit reporting arrived, lenders also see two years of monthly repayment history, which gives a good payer a way to offset a few enquiries. For the business-specific side, our guide on whether applying affects your credit score goes further.
Want to compare without adding to the tally?
Shopping around shouldn’t cost you points on your file, and with us it doesn’t. Our enquiry is a minute’s work and involves no credit check, so nothing appears on your report for asking. We don’t hand your name to a stack of lenders who each run their own search. Someone on our team, a person rather than an algorithm, goes over your answers and phones you, and only when you’re happy with a direction does any lender look at your report. Be straight with us about recent applications, because knowing your enquiry history helps us choose a lender that won’t mind it.
Frequently asked questions
How long does a credit enquiry stay on my file in Australia?
Five years from the date it was made, according to the Office of the Australian Information Commissioner. Its effect on your score fades well before that, but lenders reading the full report can still see it.
Does applying for a business loan create an enquiry on my personal file?
Often, yes. When a lender checks a sole trader, partner, director or guarantor as part of a commercial application, the enquiry is recorded on that person's consumer report. Company applications may also be recorded on the company's commercial credit file.
Does checking my own credit report count as an enquiry?
No. Requesting your own report is not a credit application and doesn't count against you. You're entitled to a free copy from each credit reporting body once every three months.
Can a lender make an enquiry without my consent?
The credit reporting rules require the credit provider to tell you it may disclose or collect information, but OAIC guidance says consent isn't needed for the enquiry itself when you've applied for credit. In practice, it happens when you submit a full application and accept the lender's privacy terms.
Can I have an enquiry removed?
Only if it's wrong, for example an enquiry from a lender you never applied to. You can ask the credit reporting body or the lender to correct it. A genuine enquiry stays for the full five years.
How many enquiries is too many?
There's no fixed number. As a rough guide, several enquiries within a few months, especially for similar loans, prompts questions from most banks. Some non-bank lenders are more tolerant if the cash flow is strong and there's a clear explanation.