When looking at your credit report, have you ever noticed the "inquiries" section?
Inquiries are records that appear on your credit report every time the credit bureau receives a legal request from a company or person to view your credit information.
There are two types of inquiries: A hard inquiry and a soft inquiry.
Can you guess which one hurts your credit score?
Check out the infographic below to see how each inquiry differs and what triggers them to occur.
The takeaway:
Credit scoring models associate numerous hard inquiries with risk. Having six or more hard pulls on your credit reports can make it tougher for you to secure credit with a decent interest rate.
To avoid this, use caution when building your credit and only take on new debts you know you can afford to pay back.
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