What Are Soft And Hard Credit Inquiries?

Good morning!

At least once a year, you should get a copy of your credit report to make sure all the information on there is accurate.

One category of items you want to check is called inquiries.

A credit inquiry is when an outside party – like a prospective employer, credit card company, or some other entity – runs your credit.

It’s important to know the difference between hard and soft credit inquiries, so as to not do anything that will damage your credit score.

Soft inquiries are pulled for the purposes of gathering information, and not to qualify for a loan.  If you apply for a job, for instance, and they pull your credit, that is considered a soft inquiry.  Soft inquiries will not affect your score.

I use Credit Karma, which updates me on my score monthly.  That’s also a soft inquiry.

A hard inquiry occurs anytime your credit is pulled for the purpose of borrowing money.  This includes applying for credit cards, auto loans, mortgages, and credit checks done by a prospective bank lender.

Each hard inquiry can lower your score by five points.  However, the credit bureaus assume that you are going to shop around for the best deal when looking for credit, so they allow you to pull your credit multiple times over a 30-day window and will only count those inquiries as one.

You should keep hard credit inquiries to no more than a few every three years.  Think about it: three inquiries in a year could cause your score to drop 15 points.  That can make a huge difference in your credit rating.

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

Advertisements

Don’t Sleep On 3D Printing!

Looking for an investment theme that may be at the beginning stages of a mega bull run?  Take a look at 3D printing stocks!

The demand for 3D printing won’t come from retail customers. but from commercial ones.  I’m not sure if you’re aware that over 90% of hearing aids made today are 3D printed.  3D printing could revolutionize manufacturing as we know it.

Here’s why:

1. It shortens design to production time.

2. It shifts power to designers.

3. It creates products with less waste.

4. It enables radically new architecture.

5. It significantly reduces manufacturing cost.

6. It creates AI-enhanced architecture.

3D printing is currently a $6 to 8 billion market.  The growth outlook is anywhere from $94 billion to $400 billion by 2023.  Now I don’t know, if that will happen…but that’s insane growth!

I posted last spring about some stocks I feel are winners in the 3D printing sector.  I will be posting an update on them soon.

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)