All You Need to Understand About Credit Score Check
When you borrow money, you will be rated according to how you pay back the amount you lent and that is what is called a credit score. You need to know that you can have a positive credit score or a negative credit score according to whether you pay back the amount lent to you on time or not. You should understand that taking a loan is not something that is new for every person has found himself or herself with a loan since they help to cater for the needs that we might not be in a position to cater for at that moment due to financial constraints. You need to read this article to understand more about credit score check.
Different types of credit score check. It is good to know about your credit score so that you will know whether you are eligible for some loans or not. Yu should know that there are two types of credit check which is the hard inquiry and soft inquiry. If you have a soft score inquiry, you will not lower your credit score but your hard score inquiry can lower credit score. If you want to know your credit score and goes to check it, that is soft inquiry but if you want a loan and the bank checks your credit score, that is a hard inquiry.
More about soft inquiries and hard inquiries. When it comes to hard inquiries, you only check your loan with a lender when he or she wants to see if you are a person that he or she can trust and give the loan but in the case of soft inquiry, you are not checking your credit score so that you take a loan but it can be for other purposes. You need to know that having a hard inquiry will leave you with a lower credit score and this is something that will ruin your reputation when it comes to taking a loan so you should avoid doing this severally.
How to go about credit score checking. Since you already know the effects that hard inquiries so often can do to your credit history, it is good that you try your best and avoid checking more than once a month to minimize the impacts. The soft inquiry, however, has no negative impacts on the credit score so you can check your credit score without worrying any time you want.
Checking our credit score is very important so you shouldn’t fear to know how your credit score s any time you want since this is something that will let you know whether your credit score has improved or not.