As you pull a copy of your credit report, you may be alarmed by the number of credit inquiries there. Credit inquiries appear on a credit report whenever a potential lender requests a copy of the report, usually to determine if the lender should extend credit to the individual. Inquires can hurt your credit score, but only hard inquiries do. For that reason, it is important to understand the differences between these inquiries.
Types
A hard credit inquiry occurs when you request credit from a lender and the lender then requests a copy of the credit report. A soft credit inquiry occurs when the lender checks the report for other reasons. In many instances, soft credit inquires occur to pre-approve a consumer for a line of credit. Another reason for these occurs when you request a copy of your credit report.
Time
Hard credit inquires remain on a credit report for two years from the occurrence of the inquiry. Soft inquiries stay on a credit report for at least a year.
Affect on Credit
While hard credit inquiries do lower a credit score, especially if there are numerous entries, soft credit inquiries do not. Because you did not initiate these credit inquiries from lenders or obtain them for your own use, these inquiries have no bearing on your credit score.
Disputing
Although it is possible to dispute inquiries through the credit bureaus, it is difficult to prove the action did not take place. It is difficult to disprove your request for credit as well. In situations where you are unsure where the inquiry came from, contact the lender listed on the report to learn more. The lender's name and contact information is on the credit report.
Limiting Inquiries
You can take steps to limit how many soft inquiries occur on your credit report. To do this, contact each of the three credit bureaus by mail or by visiting OptOutPreScreen.com. This service will allow you to opt out of all credit and insurance pre-approval offers at one time.
0 comments:
Post a Comment