Answer:
The best answer is actually, When shopping for a loan, do not submit too many applications. Each time you submit an application, the lender will do a hard inquiry on your credit score. Having too many hard inquiries at one time will negatively affect your credit and raise your interest rate.
this is 100% correct
The amount of loan applications submitted by anyone should be limited because it affects the credit score and credit history.
A loan application is defined as the application used by borrowers to apply for a loan. This application contains key details about the finances of the borrowers that included details about income, monthly debt payments, assets and liabilities and basic contact information.
The application is used to find out the credit history and credit score of the borrower. A good credit score and credit history show lenders that the borrower pays his credit obligations on time.
The lender does a hard inquiry against every loan application and credit score. If a borrower files too many applications, the lender will do a hard inquiry on each application. This will create a negative impression in front of the lender. Having too many inquiries against too many loan applications will affect the credit score of the borrower. This will result in an increase in the interest rate offered by the lender.
Hence we can conclude that to get a lower interest rate, loan applications submitted by a borrower should be limited.
To know more about the loan application, follow the link given below.
https://brainly.com/question/8604342.
