Credit Inquiries Explained: Hard vs Soft

Ever look at your credit report and notice mention of “hard” or “soft” inquiries? Not sure what they mean or how they impact your credit score? Don’t worry – we’ve got you covered!

Soft credit pulls: no stress, no impact

Soft inquiries (aka soft pulls) are generally harmless and won’t affect your credit score. They’re usually just for informational purposes, like when:

• A landlord checking your credit
• An employer might look for a background check.‍
• A lender reviews it to prequalify for a credit card or loan

 The best part? Only you can see them.Think of them as a little background check – nothing to stress about!

Hard credit pulls: proceed with care

Hard inquiries (aka hard pulls) are a whole different ballgame. They happen when lenders or creditors check your credit to evaluate your creditworthiness – like when you apply for a:

• Credit card
• Car loan
• Mortgage

Heads-up: Too many in a short time can make lenders view you as a risk. They may slightly dent your credit score and stay on your report for up to two years.

Bottom line? Don’t go wild on every credit offer – be strategic and play it cool.
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Stay in charge of your score

Keep your credit score looking sharp by sticking to soft inquiries whenever possible - they're the harmless kind that won't touch your score. Get pre-qualified, skip credit card applications, and take advantage of rate-shopping windows to dodge any credit hiccups. Whether you're rebuilding your credit or just getting started, you're in control. Protect your credit and watch your financial glow-up unfold!

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_{Exeter Finance LLC is not a credit repair agency or licensed credit counselor. Exeter does not offer services to fix or improve credit scores. These tips are intended for general educational purposes and should not be construed as legal, financial, or credit repair advice.}