In this episode of BankBazaar’s Vault Street, we tell you all about how credit inquiries affect your Credit Score.
In this episode of BankBazaar’s Vault Street, we tell you all about how credit inquiries affect your Credit Score.
There are two types of credit inquiries – hard and soft. A hard inquiry occurs when a prospective lender checks your credit report to make a lending decision. Generally, a credit inquiry has a small effect on your Credit Score. But, if multiple inquiries are made in a short period of time, you might appear credit-hungry to the lender and can lower your Credit Score. Hard inquiries can stay on your credit report for about 12 months.
On the other hand, when you request your own score from a credit bureau or an employer checks your credit report as a background check, it goes as a soft enquiry. It has no impact on your Credit Score so you can check your score as often as you like. It’s a good practice to check your score before submitting a Loan or Credit Card application.
Now that you’re all set, go check your FREE Experian Credit Score in less than 3 minutes!