Do you know the difference between hard
and soft credit inquiries? Soft credit inquiries are when a creditor is
checking your credit but does not affect your FICO score. Hard credit inquiries
are when a creditor checks your credit to determine if they will offer you a
loan or other type of financing. This inquiry can influence your FICO score,
which could make it harder to get loans in the future.
An individual’s credit score can be affected
by a variety of factors, including how much they owe and to whom. A hard
inquiry is an inquiry that requires the person to provide their consent before
it can be processed. This means you know when someone ran your credit report or
pulled your credit score because you gave them permission to do so. Soft
inquiries are usually done for marketing purposes and don’t require your
consent beforehand. They’re typically done through automated systems like
pre-screened offers, which provide valuable information about what types of
products might interest you based on the data in your credit file but will not
affect the status of your current accounts or change the content on any reports
accessed from those companies.
Hard Credit Inquiries
Do you have a lot of hard credit inquiries on your report? If
so, it may be time to find out why these are there and what they mean for your
credit score. I’ll tell you everything you need to know about hard inquires.
The easiest way is to go online and look at the three major reporting
agencies (CRAs) TransUnion, Equifax, and Experian. You can also call them if
that’s easier for you. The CRAs keep track of all your financial activity in
their databases – including any hard inquiries where someone has pulled your
credit file from one of those sources. It’s important to note that not all
banks will pull a complete copy of your report when granting an account or loan
application.
Soft Credit Inquiries
Soft credit inquiries are a type of inquiry where the only
information obtained is someone’s name and address. This type of inquiry does
not show up on your credit report and does not affect your score in any way.
These inquiries are usually used by companies to verify an individual’s
identity or to screen them for fraud, such as when you apply for a job online.
The company will typically ask you some questions about
yourself, like what high school did you attend or how many siblings do you
have, before letting you know whether they can proceed with the application
process.
CreditRepairEase is a credit repair company that
specializes in helping people with their credit. We have helped many people to
improve their credit rating and get out of debt. We are committed to providing
excellent service through their knowledgeable staff who have years of
experience in helping people just like you get back on their feet.
Read More: https://www.creditrepairease.com/blog/whats-the-difference-between-hard-and-soft-credit-inquiries/
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