Do you know the difference between a soft inquiry and a hard inquiry?
Soft inquiry sometimes known as soft pull, is an inquiry into your credit history that does not affect the credit score. Most times, you are not aware when a soft inquiry has taken place on your credit report. For example, the mail offerings you receive from credit card companies, loan companies, and car dealers it's likely the company has conducted a soft inquire to see if you qualify for services as well as when mortgage companies pre-approve you for a loan. Employers even sometimes use soft inquiries as a part of background check, banks verify you are who you say you are before opening your accounts by soft inquiries. Checking your own credit report, which you should do once a year is free and done as a soft inquiry. Checking your credit file, at least once a year is important for your financial future.
A hard inquiry on a credit report is different from a soft inquiry. Hard inquires does affect your credit score. Whenever you are applying to getting a new credit card or loan that company conducts a hard inquire on your credit report these hard inquires does lower your credit score by 5 points for about 6 months that stays on the your credit report for 2 years. It's very important you guard your credit from obtaining too many hard inquiries. Companies will offer 10-20% off your purchase for opening an account, it's not worth the hit of 5 points it can make on your credit report especially if you are trying to build credit or if you are in the market to make a big purchase like a home or car. Be smart about your credit.
Santasia H~
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