RPC Nation!!! Hope everyone is fantastic weird today! If you've been through challenges and you've been here before, then you know fantastic weird fits!!!
Chatting it up about inquiries today, its simple to me but confusing to many. So let's get after it!
Hard and soft inquiries exist in our world of credit, and they each are used for different things. Let's rock the soft inquiries in the break down!
Soft inquires have NO IMPACT on your credit! A soft credit pull can and is used for different things and are confusing to many people out there. Anytime you go to one of those credit web-sites, (the guys that sing the songs ect.) and pull your credit, it is a soft pull. Pull it everyday if you want, doesn't hurt one bit. All the cell phone, utility and cable companies also pull your credit. Again a soft pull, typically they pull to make sure you're already not in collection with them. Meaning, if you owe Sprint $200 and want another phone from them, they won't give it to you until its paid. Who else may do a soft pull is your insurance agent. Your premium is partly based on your credit, meaning bad credit will increase your rate. Perspective employers have been pulling credit as well, the debate of discrimination goes on about that one. For the time being, lots of them are pulling credit to eliminate candidates. Collection agencies will also do a soft pull, why? Mostly because you had your credit ran some where some how and you had to give updated information. They do a soft pull to find you! That's your soft credit pulls, or soft inquiries which do not affect your credit.
Hard inquiries or hard credit pull break down!
Hard inquiries or a hard credit pull is what can affect your credit. On average you can expect a 3-5 point hit for a hard credit pull. Now you're thinking I just went to the car place and they pulled credit with 7 different banks! UGH!!!! No sweat, you can have multiple inquiries within a 30 day time period and it will only count as one pull against you. However, that doesn't mean you can shop for 14 different credit cards, apply for a mortgage and shop for cars all at one crack. That would be 3 pulls against you, it has to be in the same category when applying for credit. I tell people you have 14-20 days for multiple inquiries instead of 30 days. why? Its a bit easier to think about what you did in the last two weeks than the last 30 days. How can having multiple hard credit pulls affect you besides lowering your score? When a creditor or home loan lender reviews your credit, they will look to see what you've been up to. Having multiple pulls can get you declined even if your score qualifies, they factor that into risk. From and underwriters view: "If I'm thinking about approving your loan, but I can see you're going multiple places to get credit that may create a challenge on paying this loan back."
How long do these hang around and play a factor into score? I say two years, so do a lot of other experts. SO JOHN! People have been pulling my credit with out my authorization, what can be done!?!?! You can get them removed, contact the bureaus and tell them it was an authorized credit pull. You may also want to contact the financial institution that performed the pull for a couple of reasons. What if it was pulled and it wasn't you? What if the bank has a banker that isn't that great and thinks, I'll just keep checking every few months to see if they can now qualify?!? Doing the damage!!! I try to keep it brief so I don't glaze your eye balls over. I've looked at well over 30,000 credit reports and breath credit, if you need me I'm always around...
john@redphoenixco.com
www.redphoenixco.com
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