what is the purpose of your credit score being lowered when it has been checked? why does this happen?

Applying for credit at one place doesn't mean much and doesn't lower your score much. Applying at a bunch of places in a short period of time may signify that your are in financial trouble. Exception: rate shopping for car or home loans.

It's an indicator that you've been trying to open more lines of credit.

2 or 3 a year is fine, and it doesn't really effect your score more than a few points.

3 or 4 inquiries in a quarter means you are trying to tap more credit and that could indicate problems, so it lowers your score.

Officially, it is because anyone whose credit has been checked many times is probably someone who keeps being denied and reapplying, repeatedly, and is therefore a poorer credit risk than someone who has never been denied.

I think it is to discourage applicants for credit from applying for credit in too many places and wasting the time of the lenders. Based on the questions here, this does not seem to be working.

It means you are trying to open credit.

Note: Similar inquries done within a 6 week window are grouped as one.

This is to allow people to "shop around" for a car loan or for a mortgage

Checking your own credit reports at

annualcreditreport.com

In no way affects your score.

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www.BusinessCreditKey.com - worked very well for me and showed me how to establish business credit without using personal credit

Ted got it. (I used to program the computers that did the scoring)