Hidden Gems or Red Flags: Understanding Hard and Soft Inquiries on Your Credit

Hidden Gems or Red Flags: Understanding Hard and Soft Inquiries on Your Credit

In the world of credit, the term "hard inquiry" often raises eyebrows. As an experienced attorney, Omar Zambrano understands the impact of hard inquiries on your credit score and the importance of managing them effectively.

What triggers a hard inquiry?

A hard inquiry, also known as a hard pull, occurs when a lender checks your credit report as part of their decision-making process. This typically happens when you apply for a credit card, loan, or mortgage. Each hard inquiry can slightly decrease your credit score, and multiple inquiries can lead to a significant drop.

Hard inquiry vs. soft inquiry

It's crucial to differentiate between hard and soft inquiries. While a hard inquiry may negatively impact your credit score, a soft inquiry does not. Soft inquiries occur when you check your own credit score or when a company checks your credit for a background check.

Hard inquiries remain on your credit report for two years

However, their impact on your credit score diminishes over time. It's important to note that if you see a hard inquiry that you did not authorize, you have the right to dispute it.

Steps to remove hard inquiries from your credit report

Removing hard inquiries from your credit report involves several steps:

Check your credit report regularly.
Review your credit report for any inaccuracies or unauthorized hard inquiries.
Dispute unauthorized inquiries. If you find any hard inquiries you did not authorize, you can dispute them by sending a hard inquiry removal letter to the credit bureau. The bureau is then required to investigate and remove unauthorized inquiries.
Wait it out. If the hard inquiry is legitimate, the most straightforward course of action is to wait. Over time, the impact of the hard inquiry on your credit score will lessen and it will drop off your report after two years.
To avoid unnecessary hard inquiries, it's essential to understand the terms before applying for credit

Only apply when necessary and always ask if a credit check is required beforehand. Managing hard inquiries is a crucial aspect of maintaining a healthy credit score.

At Omar Zambrano Attorney at Law, we understand the challenges that come with being laid off, out of work, or behind on payments

We specialize in helping families eliminate debt and offer free consultations to discuss your financial situation and potential solutions. Don't let hard inquiries hinder your financial future. Call us today at 626-338-5505 to learn more about how we can assist you.