Which Credit Inquiries Can Hurt Your Credit Scores?

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Hard vs. Soft Credit Inquiries
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Two Main Types of Inquiries

• Credit 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.

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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.

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How to Remove a Hard Inquiry From Your Credit
Report

• check 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.

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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.

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Improving Your Credit

• inquire 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.

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For detailed information about credit inquiries
read

http//www.newhorizon.org/credit-info/hard-inquiri
es-vs-soft-inquires-affect-credit/
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