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Your Credit Score depends on a lot of things like Credit card utilization, late bill payments, the number of credit cards, etc. and it is very easy to lower your score with just a few careless mistakes. A lot of people don’t know this but the number of credit inquiries also affect your Credit Score and could be another cause for your lowered score. So we have compiled all the information below about how a credit inquiry can ruin your chances of getting a loan and can seriously affect your credit score. Overview The Fair Credit Reporting Act (FCRA) provides you a protection against credit inquiries by defining a list of reasons which are an acceptable reason for a creditor to inquire about your credit report (Source: ). These reasons are as follows: If you have applied for a loan or a credit card, then the creditor has a right to investigate your credit report and determine whether you are eligible for the credit/loan or not. If you have been late on fulfilling your debt or any kind of late fee, then this act gives the right to Debt Collectors to gather your information from your credit report and then contact you regarding the debt collection. When you are applying for an insurance, the insurers will ask for your credit report to determine how sincerely you are going to pay the premium and if you are going to dupe them by filing a false claim or not. If you are looking for a new job, then your employer would request to see your credit report so that he can determine how responsible you are and whether you can be trusted or not. For some licenses, the government officials need to check your credit report before providing you with the license. Any company which requests your credit report and doesn’t fall in the above category is in a violation of the FCRA and you are free to sue them for it. Types of Inquiries There are two types of credit inquiries: Hard inquiry and Soft inquiry. Hard inquiries are the ones which were made by creditors and insurers when you applied for a loan or credit and they need to check your credit score before approving your loan whereas the soft inquiries entails the ones which were made by the businesses to which you didn’t apply for credit. You don’t have to worry about the soft inquiries because they don’t count in your Credit Score, it is the hard inquiries you need to look out for. If you apply for too many loans or credits in a period of 2 years, it is going to drastically effect your credit score as the inquiries made in the past 2 years reflects on your Credit Report. So always make sure you apply for new loans or credits after a substantial gap so that your credit score remains intact. How does it affect your Credit Score Around 10% of your credit score depends on the number of inquiries made for credit report and too many hard inquiries could severely damage your Credit Score. If there are too many inquiries then it is likely that you have taken a lot of debt and this might prevent you from getting a fresh credit or loan or might develop in high-interest rates due to the low credit score. It is essential that you keep your credit report from being inquired about too much in a limited period of time and always keep your credit score on the top if you want easy and less interest rate loans.
Nomura downgrades Ranbaxy to Reduce from Neutral earlier following import alert on Toansa plant. Ranbaxy’s API plant at Toansa has been placed under import alert by the USFDA. The action follows the inspection carried out by the agency in January 2014. The import alert at Toansa follows the alert imposed on a new formulation facility at Mohali in September 2013. The Toansa facility had earlier successfully concluded an FDA audit in 2011. The recent developments contradict the view that the regulatory issues are limited to the pre-2008 period and that the signing of a consent decree in January 2012 had laid the path for gradual recovery. Toansa is an important API plant with 76% of DMF filings for Ranbaxy. The target price has been cut to Rs311 from Rs436 earlier. Nomura estimates the stock can potentially drop to EV/sales, in which case the price could drop to Rs250-270.