When is an inquiry made of a credit-reporting bureau?

An inquiry is made of a credit-reporting bureau when a customer signs a credit application. This is the critical moment when a dealership or lender seeks to assess a potential borrower's creditworthiness. By submitting a credit application, the customer authorizes the dealership to access their credit report. This report contains vital information such as credit scores, payment history, and outstanding debts, which allows the dealership to evaluate the risk involved in granting credit.

While the approval of a sale, finalization of a loan, and discussions regarding payment plans all involve assessing credit information, the actual inquiry into the credit-reporting bureau specifically occurs at the point of signing the credit application. This process is essential for determining the appropriate financing options available to the customer based on their credit history.