When it comes to credit scores, many people are familiar with the concept of “hard inquiries.” These occur when a lender or financial institution checks your credit report as part of the application process for a loan or credit card. However, there is another type of inquiry called a “soft inquiry,” which has a different impact on your credit score. In this article, we will explore what a soft inquiry is, how it differs from a hard inquiry, and how it can affect your creditworthiness.

What is a soft inquiry?

A soft inquiry, also known as a soft pull or soft credit check, occurs when an individual or business checks your credit report without your explicit consent. It may happen when you check your own credit score, when a potential employer conducts a background check, or when a lender pre-approves you for a loan offer.

How is a soft inquiry different from a hard inquiry?

The key difference lies in the purpose and impact of the inquiry. A hard inquiry is initiated by you when applying for credit, such as a mortgage or credit card. Hard inquiries can influence your credit score and typically remain on your credit report for up to two years. On the other hand, a soft inquiry does not affect your credit score and is only visible to you when you review your credit report.

Can a soft inquiry impact my credit score?

No, a soft inquiry does not impact your credit score. Since it occurs without your consent or explicit application for credit, credit bureaus do not consider it in their calculation of your creditworthiness. Soft inquiries are essentially just a way for individuals or businesses to gather information about your credit history without any negative consequences on your credit score.

When do soft inquiries typically occur?

Soft inquiries can occur for various reasons. Some common examples include when you check your credit score through a credit monitoring service or when a credit card issuer or lender performs a pre-approval check. Additionally, soft inquiries may happen when insurance companies, landlords, or potential employers request access to your credit report as part of their evaluation process.

Are there any advantages to soft inquiries?

Soft inquiries can provide you with useful information about your credit history. By regularly checking your credit score through soft inquiries, you can stay informed about any changes or potential inaccuracies in your credit report. This proactive approach allows you to address any concerns or errors promptly, ensuring the accuracy of your credit profile.

How can I keep track of soft inquiries?

There are several ways to monitor soft inquiries on your credit report. Many credit monitoring services provide regular updates and alerts whenever there is a change to your credit file, including any soft inquiries. Additionally, you can request a free copy of your credit report from each of the three major credit bureaus – Equifax, Experian, and TransUnion – once a year through AnnualCreditReport.com.

In conclusion, soft inquiries do not impact your credit score and are essentially harmless. They occur without your consent and are used for informational purposes only. By understanding the difference between soft and hard inquiries, you can make informed decisions about managing your credit and maintaining a healthy credit score. Remember to regularly check your credit report to stay aware of any changes and promptly address any concerns that may arise.

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