| What you don't know could hurt you, financially! | | | | (Service). Incidentally, this is not the only person |
| It is always a good idea to periodically check your | | | | who has experienced this problem. |
| credit report for errors and problems so that you | | | | Ok. Let's discuss what actually impacts your credit |
| can correct them. And, you are entitled to | | | | score; more specifically, the differences between |
| receive one free report from each of the credit | | | | hard and soft credit checks. |
| reporting agencies (CRAs) each year. Who are | | | | Whenever you request a credit card, or open an |
| the big three CRAs: Equifax, Experian, and | | | | account at a store, or apply for a loan of any |
| TransUnion. | | | | type, you have to give permission to the creditor |
| To get your free credit report online, contact | | | | to access your credit report. Are you aware that |
| each CRA though the Internet and request a | | | | the inquiry could negatively impact your credit |
| credit report. There should be no charge. If there | | | | score? An inquiry occurs when another party |
| is, then phone the company for assistance. While | | | | examines your credit history and credit score. |
| there are services that will obtain the report from | | | | Hard inquiries affect your credit score negatively; |
| each of the three CRAs (saving you some time), | | | | soft inquiries will have no affect. |
| there have been issues where the requested | | | | Soft vs. Hard Credit Inquiry |
| reports are not received, and yet the CRA will | | | | A Soft inquiry (also known as soft credit checks |
| have your request on their database as being | | | | or pulls) occurs frequently without your |
| issued. The process to correct this is a lot of | | | | permission. They occur under the following |
| aggravation. | | | | conditions:o When you request it for yourself |
| Here's a real case with a leading credit reporting | | | | (note that requesting credit reports may be free; |
| service that provides credit reports from the top | | | | credit scores are not)o Initial credit checks by |
| three CRAs. | | | | credit card companies when soliciting your |
| "This is the second year I have used it [the | | | | business. (This is when you receive that unwanted |
| service] and have had problems getting my | | | | mail for new credit cards)o Initial credit checks by |
| Equifax report both times. I'm not able to do it | | | | loan companies for pre-approval on loanso |
| online and when I call Equifax (I, of course, get | | | | Employer inquiries when applying for a job, or in |
| someone in India), they try telling me I have | | | | consideration for a promotion, etc..o Insurance and |
| already requested it and I will now have to pay | | | | credit card company periodic reviews for ongoing |
| for one. | | | | credit. |
| I just about shouted at the guy today because | | | | A Hard credit check or inquiry does impact your |
| he couldn't understand what I was saying, and I | | | | credit score negatively. It occurs under the |
| was confusing him by going off his script, and all | | | | following conditions:o Applications for new credit |
| he could do was keep telling me I have to pay | | | | cards or accountso Requests to activate |
| for one. I tried explaining to him it's probably | | | | pre-approved credit cards (those cards you have |
| showing I requested it; however, I never received | | | | received in the mail that you decide to activate)o |
| it so there's an error. | | | | Activation of new cell phone contracts (consider |
| I think my cat would have understood me better, | | | | this when you decide to change plans)o Opening a |
| when I explained it to him, than the guy I was | | | | new checking or savings account at some banks |
| talking to! If not, at least he would have purred | | | | and credit unions. |
| some for me! | | | | When you review your credit report, you will see |
| I got the other two CR's with no problems; | | | | entries for both soft and hard credit checks. If |
| Equifax is the only one giving me grief. " | | | | any hard credit checks are incorrect, contact your |
| The problem was that the Service reported to | | | | affected agency and have them remove the |
| the agencies that reports were issued, when in | | | | check (and see if you can have the impact on |
| fact the Equifax report was not. This is why it | | | | your credit score adjusted). And try to keep hard |
| may be safer to request your reports directly | | | | credit checks to a minimum. |
| from each agency and avoid the middle-man | | | | |