Learn About Credit Inquiries
How Do You Get Inquiries?
Every time you apply for credit and the credit grantor checks your credit report, a credit inquiry is placed on your file. Even if you receive a credit offer in the mail and you respond, your credit will almost certainly be checked and a credit inquiry will be added to your credit report.
Types of Credit Inquiries
- Hard pull inquiriesoccur when you applied for new credit, like a credit card, submitted a loan application for a car or home. Hard pull inquires can affect your credit score.
- Soft pull inquiriesoccur when an existing creditor pulls your credit to see what your credit situation is. A soft credit inquiry occurs when you pull your own credit report. Soft credit inquiries do not affect your credit score.
Does an Inquiry Affect Your Credit Score?
- Credit inquiries are bad because too many of them can indicate to a creditor that you’re “credit hungry” and may be in financial trouble.
- Worse yet, the creditor has reason to believe that you received many of the credit lines that are showing as inquiries, and that many of those credit lines have not yet appeared on your credit report.
- Too many recent inquiries indicate to a potential credit grantor that your debt-to-income ratio may be much higher than you say.