Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
“`html
Anytime your credit is checked, an inquiry is noted on your credit report. Depending on who is checking your credit and why it’s being checked, this inquiry will be classified as either a soft inquiry or hard inquiry. Soft inquiries don’t affect your credit scores, but hard inquiries can.
Checking your own credit score is considered a soft inquiry and won’t affect your credit scores. There are other types of soft inquiries that also don’t affect your credit scores, and several types of hard inquiries that might.
Here’s what you need to know about soft and hard inquiries and why checking your credit score regularly is a good idea.
A soft inquiry, sometimes referred to as a soft credit check, can occur for a few reasons, including when:
Soft inquiries don’t have an impact on your credit scores because you’re not officially applying for credit. So when you fill out a form to get prequalified for a mortgage, student loan, personal loan, or credit card, there are no strings attached.
Once you take the next step and apply, however, the lender will make a hard inquiry, which will show up on your credit report for others to see and can temporarily lower your credit score.
While checking your own credit score won’t change it, there are plenty of other things that can affect your credit score negatively. Here’s a quick breakdown of each factor that influences your FICO® Score:
Because there are so many variables that go into calculating your credit score, it’s impossible to determine exactly how much damage a negative item may cause to your score. But if you notice your credit score drop and are wondering why, look at these areas to find the likely reason.
You can check your credit score as often as you want without hurting your credit, and it’s a good idea to do so regularly. At the very minimum, it’s a good idea to check before applying for credit, whether it’s a home loan, auto loan, credit card, or something else.
When you do this, you can help make sure there aren’t any problems that could make it difficult to get approved for a new loan or credit account. By checking at least a few months in advance, it can also give you time to address anything that could be hurting your credit score.
It’s also a good idea to check your credit report at least once a year. While your credit score is a numerical snapshot of your overall credit health, your credit report provides the actual information used to calculate your score.
As you check your credit report, look out for anything you don’t recognize. If you find something odd, contact the lender to make sure it’s legitimate. Sometimes, a lender may operate under a different name and report a name you’re not familiar with to the credit bureaus; if you’re applying for a car loan, the dealership may submit a credit application to multiple lenders.
If you find information you believe is inaccurate or even fraudulent, report it to the credit bureaus.
You can get a free credit report from each of the three credit bureaus weekly through AnnualCreditReport.com. You can also get your Experian credit report online anytime for free.
Historically, it’s been difficult to get access to your credit score for free. But it’s gotten much easier in the past few years.
For example, many financial institutions offer free FICO® Score or VantageScore® access to their customers for free as a benefit. If you don’t have an account with this perk, you can check your FICO® Score through Experian for free. A handful of other services offer this benefit as well.
Keep in mind that most lenders use your FICO® Score in credit decisions. So if you’re looking at a different credit score, it likely isn’t the one lenders will see when they do a hard credit check. Even with a FICO® Score, different lenders may use different versions of the score, such as an industry-specific version for certain types of loans. But you’ll still have a good idea of where your credit stands.
Checking your credit score regularly is essential if you’re working on building or rebuilding your credit history. As you look for opportunities to improve your credit, here are some tips to help you get started:
As you use these tips and other good credit practices, you’ll be well on your way to a better credit score.
For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We’re here to help you navigate your mortgage journey with ease and expertise.
“`