When people talk about and work through their credit scores there is often confusion and myths that surround the information they have. It may surprise you to know that when a company makes an inquiry or you apply for a new credit line your credit score is only affected by about 10 percent. Then to make things even more confusing, the inquiries that are made on your credit affect your score in different ways.
There are two main inquiry types that can be made on your credit score. There is a difference between soft and hard credit checks. There are differences between the two types of credit checks.
A hard inquiry is made on your credit check when short term loan lenders or credit card companies look at your credit report. This can happen when you apply for a mortgage or any other type of loan. Here are some facts about how soft and hard inquiry differences affect your credit.
A soft inquiry is a lot better than a hard hit on your credit. For example, when you check your own credit reports during this corona pandemic you have just performed a soft hit on your record. Here are some facts about soft and hard inquiry differences that you will want to know about soft checks.
As a consumer, you want to know how your credit report works and know about soft and hard inquiry differences. By knowing how everything fits together you can make intelligent decisions that can affect your credit report so it helps you save money in the future. Credit checks are a constant part of life as a consumer.
It is important to try to keep your credit report clean from soft and hard inquiry differences. If you are deciding to buy a new home or you are personal loan shopping, try to keep lenders from performing a hard inquiry until you are ready for loan approval with the company you have chosen.
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