A consumer looking for a lower interest rate may find that the process of comparing offers and submitting refinance applications can affect their credit risk assessment. Recent credit inquiries are among the factors used to calculate a FICO® score, a credit score ranging from 300 to 850 that estimates the likelihood a borrower will repay on time. A higher score indicates lower risk, but it does not guarantee loan approval. Banks use the score together with the credit report and other applicant information, and each institution sets its own risk thresholds, so the same score can lead to different decisions. The FICO model considers payment history, current debt, length of credit accounts, new credit inquiries, types of credit used, and the borrower’s age. For new credit, the number of inquiries and loans granted in the past six months are particularly relevant. Even if a borrower has no delinquencies, other factors can still influence the score. The Romanian Competition Council has opened an investigation in 2023 into whether the FICO methodology and banks’ use of credit bureau data may limit access to credit and customer mobility. The inquiry followed inspections of ten banks, the Credit Bureau, and the Romanian Banking Association. According to Bogdan Chirițoiu, president of the Competition Council, the investigation could be concluded by early 2027, though this is an estimate rather than a fixed date. Until the investigation is complete, there is no evidence that the data sharing itself violates the law. The issue is whether the way banks use the information and the calculation methodology restrict competition. The Competition Council must determine whether the use of data and methodology limits market access. Consumers can mitigate potential score impacts by following a structured approach. First, request a pre‑qualification or eligibility simulation that specifies whether the inquiry will affect the FICO score. BCR, for example, states that pre‑scoring checks for pre‑approval do not affect the score, but this may not apply to all banks or stages of the application. For initial comparisons, use public simulators and indicative offers that do not involve a full application. In addition to the interest rate, consider the annual percentage rate (APR), fees, insurance, administration costs, total repayment amount, and refinancing conditions. After narrowing the options to one or two, the consumer can request in writing which checks will be performed and whether they will count toward the score. It is advisable to avoid submitting multiple firm applications simultaneously unless necessary, while still comparing costs and terms. Consumers can also request their own credit report directly from the Credit Bureau under the GDPR right of access, without applying for a new loan. The request can be made online after identification and enrollment, through a bank where the consumer is a client or potential client, or by mail. The report, called “Situația Înscrierii,” may include the FICO score if sufficient data are available. The Credit Bureau must respond within one month of the request. The consumer should review reported loans, balances, any late payments, co‑debtor or guarantor status, and recorded inquiries. If inaccuracies are found, the consumer can request corrections, usually from the party that supplied the information. GDPR also provides rights to contest decisions based solely on automated processing and to seek human intervention, though these rights do not obligate a bank to grant a loan. For those seeking refinancing, the practical steps remain: verify the data, compare total costs, and clarify the impact of each inquiry before submitting the application.
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