Credit scores can be impacted by several factors.  Some of these factors include: payment history, credit utilization, credit history length, and more.  One of these factors that can be overlooked are Credit Inquiries.  While credit inquiries have a relatively minor impact on your credit score, they tend to add up and can have and can have an impact until they fall off of your credit report.  If you are someone that is hunting for financing frequently, there might be some negative impact on your credit score from excessive credit inquiries.  Read below to learn more about the difference between soft and hard credit pulls, what to do about credit inquiries and to find out how long inquiries stay on your record.

Soft Credit vs Hard Credit Pulls

There is a big a difference between the two different types of pulls.  A soft pull will not impact your credit score while hard pulls will have some affect on your credit score.  Soft pulls are often performed by lending institutions at the beginning of the process to determine if the loan is appropriate.  A hard pull is usually performed after documents have been signed for a loan.  Hard pulls also affect people differently.  A person with a weaker FICO score may be impacted more than someone with a stronger score.  It is important to consult with the lending institution you are working with regarding whether they are performing soft or hard pulls on your credit.  This may help you prevent headaches down the road and can avoid any unnecessary dings on your credit history.  Providence Capital performs soft pulls when customers are inquiring about equipment financing.

What to do about Credit Inquiries

If you are shopping around for credit then you are likely going earn some credit inquiries on your record.  Planning ahead and knowing how long inquiries stay on your record can help you reduce the amount of inquiries that will end up on your records.  Also, getting your credit into strong shape at the time that you are looking for financing will also help.  Be sure to consult with your lending institution to be sure of what type of credit pull to avoid excessive hard pulls on your credit.  Also, be aware of fraud.  Make sure that you have authorized the credit pulls that are on your credit history.

So how long?

Other than not having a huge impact on your credit score, another positive about credit inquiries is that they will not stay on your credit report for an eternity.  A hard credit pull can stay on your credit report for up to a year in most cases while affecting your credit score for up to 6 months.  Having strong overall credit will outweigh the impact of credit inquiries, so the best things you can do is to keep your credit score strong.

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