It’s normal for your credit score to fluctuate a few points each month based on your credit utilization rate. However, when you find that your score has dropped a number of points despite everything remaining the same, it can be unnerving. After reviewing your report, you may be surprised to find several hard inquiries included. As such, this could be the reason for the drop in score. Though a hard inquiry won’t have a big impact, too many can. The following blog explores how these looks into your credit history can affect your score and why you may need to connect with a California credit report lawyer if you have reason to believe something is amiss.
What Is the Difference Between a Soft and Hard Inquiry?
When you look at your credit report, you will notice a section for the various inquiries into your credit history. Essentially, this just informs you of who has pulled your credit report to view. There are two kinds of inquiries – soft and hard. A soft inquiry is used for promotional purposes. For example, a credit card company may perform a soft inquiry into your history to “pre-approve” you for a card based on your information. Additionally, you can perform a soft inquiry by checking your own credit score. Because you did not request these credit pulls, they do not impact your credit score at all.
On the other hand, a hard inquiry into your account will impact your credit score. When you submit an application for something like a loan or credit card, the company will pull your credit report to check your history to determine whether or not to approve your application. Each time this occurs, your credit score will drop by a few points.
Is It Possible to Remove an Inquiry From My Report?
As mentioned, the inclusion of hard inquiries on your credit report won’t cause your score to drop drastically. However, you should avoid having too many at once, as potential lenders may see it as high-risk behavior.
If you find inquiries on your account that you don’t recognize, you may not think twice as it only impacts your score by a few points. However, it can be indicative of a larger issue. You may find that this is the result of identity theft or a credit mix. Regardless, you can dispute the inclusion of unfamiliar or inaccurate inquiries in your report.
When you need assistance with issues regarding your credit report, Loker Law is here to help. We understand how important your credit score is to you as a consumer, which is why our team is ready to fight for you. Connect with us today to discuss your circumstances with a member of our firm.
