Inquiries always produce negative effect on our credit. If you have large number of listed inquiries of your credit report, you will lose credit points. Essentially there are two major usages of these inquiries that are:
Hard Inquiry: If you apply for credit or loan, the lender checks credit report to see your status of credit worthiness. This kind of inquiry will remain on your credit score report for three years and make bad impact on your credit history.
Soft inquiry -It is made by lenders or creditors who are not having any right of credit report pulling. These inquiries work when a creditor tries to extend credit without the consent of concerning person. This kind of inquiry is understood as unauthorized inquiry, but it does not hurt the credit score.