Final answer:
If you are approved for a Line of Credit but do not complete the purchase process, the inquiry will typically show on your credit report. There are two types of inquiries: hard inquiries and soft inquiries. Having one or two inquiries on your credit report is generally not a major concern and may only have a minor impact on your credit score.
Step-by-step explanation:
If you are approved for a Line of Credit but do not complete the purchase process, the inquiry will typically show on your credit report. Whenever you apply for credit, whether it's a line of credit, credit card, or loan, the lender will typically make an inquiry into your credit history to assess your creditworthiness. These inquiries are recorded on your credit report and can impact your credit score.
There are two types of inquiries: hard inquiries and soft inquiries. Hard inquiries occur when you apply for credit and can have a negative impact on your credit score. Soft inquiries, on the other hand, do not affect your credit score and typically occur when a lender or creditor checks your credit report for pre-approval offers or when you check your own credit report.
In the case of a Line of Credit, the inquiry would likely be considered a hard inquiry because you are actively seeking credit. It's important to keep in mind that having one or two inquiries on your credit report is generally not a major concern and may only have a minor impact on your credit score.
However, if you have numerous inquiries within a short period of time, it can raise red flags to lenders and may negatively impact your creditworthiness.