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Hard And Soft Inquiries That You Need To Know On Credit
There are three major American companies that maintain a detailed report of your credit standing and repayment history. This data can be requested for by banks, money lenders, credit card companies, employers and so on. Let us take a look at when hard credit inquiries are essential and when soft credit inquiries may be initiated and by whom.
Hard credit check inquiries are normally mandatory
A hard credit check inquiry may be requested when
Soft credit inquiries are usually mandated when
Though not essential, a soft credit inquiry may also be initiated in the following situations:
By a landlord whose property you wish to lease or rent
By a telecommunications company when you request for a telephone or internet connection
By a banker with whom you wish to open an account of any kind
A hard check cannot be initiated unless it has been authorized by you post your application for a loan, mortgage or credit card. A soft credit inquiry may not require your authorization.
Credit scores that are obtained from a hard inquiry may affect your overall credit standing adversely. Most soft inquiries, including those where you wish to assess your own credit score, have no adverse impact on your credit standing.
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