About Inquires
Inquires affect almost everyone who has credit. Inquiries are one of the most confusing and least understood parts of the credit report.
What are inquiries?
An inquiry is a record of someone checking your credit information. There are two different types of inquires. A "hard inquiry" takes place when a business or lender checks your credit during an application. A "soft inquiry" takes place when your credit is checked by you or any other reason that is not involved with an application. If you apply for an auto loan, a “hard inquiry” will appear on your credit report and may cause a decrease in your credit score of a few points. When you check your own credit report, or when it is checked for a pre-approved marketing purpose, it is considered a “soft inquiry” and will not harm your credit score.
Who can place an inquiry?
According to the Fair Credit Reporting Act, only people with legitimate business needs can access your credit information. This includes creditors, lenders, insurers, and landlords who need to review your credit during the application process.
Why are inquiries recorded?
Inquiries are recorded so that possible creditors and lenders can view how often you have applied for new credit. They check this to insure you are not trying to over spend. Don’t let this discourage you from shopping around multiple inquiries for the same purposes in a short amount of time are commonly grouped into one less harmful inquiry gathering. Inquiries can be helpful for you also, if you find multiple inquires from business you have never been to it’s possible someone is using your identity.
How long do they last?
“Hard inquiries” stay on your credit report for two years from the original placement. You are allowed to dispute inquiries on your credit report, but it can be difficult to prove that the inquiry is indeed erroneous. If you are not sure where an inquiry came from, try contacting the company that listed the inquiry.