When you are checking your credit report, you may be surprised to see that your credit score has dropped quite a few points despite your circumstances remaining the same. Upon closer inspection, you notice a few “inquiries” on your report. Depending on the circumstances, these are not always unusual. However, if you have a considerable amount of hard inquiries, it could be a sign of something more serious. The following blog explores how a soft and hard inquiry differs and whether or not you can dispute the inclusion of this information with the help of a San Diego County credit reporting error lawyer.
How Do Soft and Hard Inquiries Differ?
When reading your credit report, there are generally two kinds of inquiries that will appear – soft and hard. First and foremost, an inquiry occurs any time a creditor pulls your information. This includes lenders, employers, or landlords. A soft inquiry occurs as the result of promotional events, such as a credit card company “pre-approving” you for a card. Essentially, this means they have pulled consumer reports, including yours, to determine who would be a good fit to advertise to. You can also perform a soft inquiry when you check your own credit. Regardless, soft credit inquiries do not impact your credit score, as you have not authorized these.
A hard inquiry, on the other hand, occurs when you apply for a loan, such as a credit card or mortgage. The lender will then pull your credit report to determine whether or not to approve your application. Unlike soft inquiries that do not impact your credit score, each hard inquiry on your report can lower your credit score by a few points. Though this may not seem like a big deal, you shouldn’t have too many hard inquiries at once because lenders may assume you’re in debt and looking for quick cash, deeming you a high-risk lender.
Can I Dispute a Hard Inquiry on My Credit Report?
Though a few points here and there may not seem like a big deal, you’ll find that when there are a number of these on your reports that you did not authorize, it can have a more substantial impact on your report. As such, if you discover these errors on your report, it’s in your best interest to dispute the inclusion of this incorrect information. Unfortunately, when you discover several unauthorized inquiries on your report, it can also be the result of identity theft, as someone may have used your identity to take out several loans in your name.
If you’ve found mistakes on your credit report, whether it’s the inclusion of incorrect information on your account or you believe you were the victim of identity theft, it’s in your best interest to connect with an experienced attorney from Barthel Legal. We know how important your credit score is, which is why we are determined to help ensure that yours is accurate. If you need help, Barthel Legal is here to assist. Connect with our team today to learn how we can guide you through this process.
