Inquiries can have a greater impact if you have few accounts or a short credit history. Large numbers of inquiries also mean greater risk. Statistically, people with six inquiries or more on their credit reports can be up to eight times more likely to declare bankruptcy than people with no inquiries on their reports. Because hard inquiries can potentially drop your credit scores, they can result in your paying higher interest rates on loans.

On large loans, like those for a car or home, a score drop of even a few points can mean you end up paying out more money over the life of the loan.