How Credit Checks Impacts Your Credit Score

An ‘Inquiry’ occurs when you apply for CREDIT, you effectively authorize LENDERS to ask for or ‘Inquire’ for a copy of your credit report from the credit bureau. The impact from applying for CREDIT will vary from person to person.

• HARD INQUIRY

  This occurs when a lender checks your credit when making a lending decision. They commonly take place when you apply for a mortgage, loan or credit card and it must be authorized by the individual. A large number of hard inquiries can impact your credit score. If you are shopping for a new auto or mortgage loan or a utility provider, the multiple inquiries are generally counted as one inquiry for a given period of time. That period of time may vary depending on the credit scoring model, it’s typically 14 to 45 days.

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  SOFT INQUIRY

  This occurs when a person or company checks your credit as part of a background check. This may occur for instance when a credit card issuer checks your CREDIT without your permission to see if you qualify for certain credit card offers.

Unlike hard inquiries, soft inquiries wont affect your credit scores since they are not connected to a specific application for new credit and they are only visible when you view your CREDIT REPORT.

To speak to a credit repair specialist today about how credit checks may have impacted your credit score contact Canada Auto Experts via phone at 1-855-550-5565 or visit www.canadauto.ca.