Definition
A check on your credit report, usually by a lender or employer. Too many can affect your credit score, so they’re used sparingly.
What to consider
- Monitor the frequency of inquiries on your credit report.
- Too many can hurt your score, so be selective.
- Dispute any unauthorized checks if you notice them.
Real world scenarios
- Darrin checks his own credit score online, noting it’s a soft inquiry that won’t impact his rating.
- When Bella applies for a new rewards card, the bank performs a hard inquiry. She anticipates a small, temporary dip in her credit score.
- Kyle spaces out his credit applications to minimize the effect of multiple hard inquiries within a short period.
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