What is an Inquiry on Your Credit Report?
Have you received your credit report and noticed an inquiry? What does it mean and how does it affect you? Here is a couple things that you should know.
According to TransUnion, credit inquiries—often called “credit pulls”— are a request to view your credit history. There are hard and soft pulls.
A soft inquiry happens when either you or a lending company does an initial search on your credit report.
This can be implemented for monitoring your own credit report. Soft inquiries don’t impact your credit score, but can stay on your credit report for two years.
Lending companies will sometimes do soft inquiries, without your knowledge, to give you potential marketing offers through a prescreen.
You can opt out of prescreening via www.optoutprescreen.com.
If you have a hard inquiry on your report, it normally means you have applied for a line of credit and the lending agency has done a deep search of your file.
A hard search will have an impact on your credit score, but this is normally less of an impact to a high credit utilization, for instance.
If you have found inquiries on your file, it is best to investigate them. Sometimes it can be as simple as a credit limit has been extended.
If you are concerned about a specific inquiry on your credit report, contact your lender directly to inquire. You can also request they remove the inquiry from each of the reporting agencies.
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