Your credit history may be requested for a variety reasons from a variety of different agencies.  Whether you are applying for a credit card, an auto loan, a home loan, or any other credit, you should expect that your credit history will be reviewed.  While most people are aware that their credit will be reviewing when they are applying for any type of credit account, they may not be aware that certain non-financial agencies may be pulling a hard inquiry of your credit report.  For example, if you are applying to graduate school, or applying for some type of professional license after having completed graduate school, your credit may undergo a hard inquiry.

Understanding Hard Credit Inquiries

A hard credit inquiry is a reportable incident that has the ability to lower your credit score, even though you yourself have not done anything to deserve such a downgrade.  A hard inquiry may stay on your credit report for nearly two years, and this is frustrating for individuals who are trying to improve their credit.  While a hard inquiry does have the potential to lower your credit score, other financial decisions that you make have the potential to increase your credit score (such as paying off a credit card or personal loan).  As such, a hard inquiry is not likely to have a huge impact on your credit score when looking at the bigger picture.  It is important to keep in mind that a hard inquiry likely cannot be undergone without your permission.

Understanding Soft Credit Inquiries

Soft credit inquiries are more routine and can be undergone without your permission.  Most educational institutions will run soft rather than hard inquiries (excluding the example above), and a soft credit inquiry will have no effect on your credit score.  Even if a soft inquiry is present on your credit report, it will not be taken into consideration when you apply for credit.  Additional reasons why there may be a soft inquiry into your history may be if you are applying for a credit card where you have already been pre-approved, you wish to review your own credit score, and/or when a potential employer is running a background check on you.  Overall, a soft credit inquiry has minimal impact on your credit, while a hard credit inquiry can lower your credit score at least for a short period of time.

Contact Kansas City Bankruptcy Attorney Douglas Breyfogle Today to Schedule a Free Consultation

If you are facing debt that is having a negative impact on your credit history, and your poor credit history is affecting your ability to purchase a car or home, it may be time to speak with a Kansas City Debt Relief and Bankruptcy Attorney who has the experience and skill to find the right debt-elimination tool for your particular financial situation.  Having good credit can make life decisions a lot easier for you to make, and while it may take time to rebuild your credit, the sooner you are able to face your debt and seek the guidance of a seasoned legal professional, the sooner you will be on your path to financial freedom.  Kansas City Bankruptcy Lawyer Douglas Breyfogle has more than twenty years of experience providing clients with individualized and well-rounded legal representation, as no two clients’ cases will ever be exactly alike.  There is no shame in seeking the advice of an attorney, especially when your ultimate goal is to become debt free.  To schedule your free consultation with Douglas Breyfogle, contact our office today by calling (913) 742-8700.