Do Credit Inquiries Hurt My Credit?

Often times when people are trying to fix their credit report, they pull up their report a few times and wonder, do these types of credit inquiries hurt my credit score? Here I’ll try to answer that question and thus clear up some misconceptions. You see, there are two kinds of credit inquiries, there is a soft credit inquiry and a hard credit inquiry. One impacts your score negatively while the other one doesn’t.

A soft credit check is when you check your own report or when someone accesses your report without you initiating the look up. Examples of this include when your employer does it, utility company does it or insurance company does it.

A hard credit inquiry happens when you’re applying for credit. Examples of this include when you’re applying for an auto loan, applying for a mortgage or applying for a credit card.

About The Author

Edwin is a marketer, social media influencer and head writer here at Daily Finance Options. He manages a large network of high quality finance blogs and social media accounts. You can connect with him via email here.

2 Comments

  1. Allan King

    But you’re not penalized if there’s a few credit checks close by each other. It’s good it’s like that because I plan on going car shopping soon and want to compare prices.

    Reply
  2. Warford Designs

    very insightful, I am just building my credit now and going to be looking further into how to keep my score up.

    Reply

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