What Is A Credit Inquiry?
A credit inquiry is when someone requests to view your credit report. There are two types of credit inquiries. There is a hard inquiry and a soft inquiry. A hard inquiry is when a lender requests to view your credit report in order to approve you for a loan. Soft inquiries are inquiries that are not done in relation to a loan. Hard inquiries will be inquiries done by banks or lenders. Soft inquiries will be inquiries done by insurance companies, landlords, prequalified offers, or if you request your report for your own review, etc.
How Much Do Inquires Effect Credit?
Only the hard inquiries will affect your credit score. A hard inquiry will not have a big effect on your credit, as long as there are not too many of them on your report (5 or more in 12 months). Soft inquiries do not affect credit, neither can they be viewed by anybody except yourself. So when a lender requests your credit report they will only be able to view the hard credit inquiries, not the soft.
How Long Does a Credit Inquiry Stay On My Credit Report?
Inquiries stay on the credit report for up to two years. But inquiries only affect credit for up to 12 months. So after 12 months, they will still be there, but not affect your credit score.
Will A Credit Inquiry Show Up On My Credit Report Even If I Get Declined For The Credit Card?
Yes, the credit inquiry will be on your credit report regardless if you get approved for the credit card or declined.
Do Banks Pull All Three Credit Bureaus All The Time?
No. Not at all. Most banks (except Capital One) will only pull a credit report from one credit bureau when you apply for a credit card. But in regard to mortgage loans, auto loans, or any other type of loan, usually, a credit inquiry will be done by all three credit bureaus.
How Can I Know Which Credit Bureau the Bank Will Pull?
Issuers don’t always pull credit reports by the same credit bureau. It usually varies by the state and periods. On Credit Boards there is a great page were people report from which credit bureaus their credit was pulled. You can search there for someone that applied within the last few months by the same bank and lives in your state. Based on that information you can figure that your inquiry will go to that same credit bureau.
What Should I Do If I Find On My Credit Report an Inquiry That I Do Not Recognize?
If you find on your report a few credit inquiries that you do not recognize, then that may be a sign that someone is misusing your credit report. You should call the bank which conducted the inquiry right away and find out more about the credit inquiries and dispute them. If you are scared that someone has your personal information and is trying to open up false accounts in your name, then you might want to consider freezing your credit reports.
Have any other questions about credit inquiries? Just Ask Sam! I would be glad to help.