Know the difference between soft inquiries and hard inquiries
You should understand the difference between a soft inquiry and a hard inquiry. If you don’t know, then check out these examples of the two types of inquiries:
- When you pull your own credit report
- When a current credit runs your credit as part of an account review to see how well you are using your credit
- When a potential creditor is looking at your report for solicitation purposes
- Applications for credit and credit based insurance
- A review made by a creditor for a purpose permitted under the FCRA
Why does it matter? A soft inquiry does not impact your credit score. A hard inquiry may adversely impact your credit score.