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Hard vs. Soft Credit Inquiries
Two Main Types of InquiriesCredit reports may contain two kinds of inquiries.
1. Hard Inquiries
2. Soft Inquiries
These credit pulls permit third party organizations to scrutinize your credit report. However, between the two it is hard inquiries that create a negative impact on your credit score.
What is A Hard Inquiry? usually done by a credit issuer in making a
decision to lend you money or not.
may be a prerequisite when you apply for a mortgage, credit card or loan.
can reduce your credit score by a few points especially when credit has only been recently established.
remains on your credit record for a period of 2 years.
not advisable to be run multiple times as it can bring down your credit score.
How to Remove a Hard Inquiry From Your Credit Reportcheck your credit report and
dispute any credit pull that you did not initiate from companies you do not recognize or authorize.
if you suspect your credit is being used by someone else, put a statement on your credit report warning creditors that you are a victim of identity theft.
get an app like Lifelock that monitors your credit activity or any malicious activity in your account.
put a credit freeze on your account when ID thieves become very aggressive.
What Is A Soft Inquiry? will not affect your credit score.
can only be done by companies with your authorization to run a credit check.
usually done for background checks by organizations like insurance agencies and utilities companies.
may be done in conjunction to an initial credit review.
Improving Your Creditinquire either through phone or e-mail if a
company is doing a hard or soft inquiry on your credit when applying for credit.
ask how many people will be authorized to pull your credit.
put a limit to the number of people who can pull your credit so you can dispute if the companies goes more than the agreed number of people who are allowed to do an inquiry.
initial your statements along with your broker.
For detailed information about credit inquiries read
http://www.newhorizon.org/credit-info/hard-inquiries-vs-soft-inquires-affect-credit/
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