On : My Experience Explained
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. If you are obedient when it comes to paying the loans, you will have a positive credit score and if you do not pay as expected you will have a negative score. A loan is something that almost every person has borrowed if not all at one time and it is something that will help one to accomplish their objectives. You need to read this article to understand more about credit score check.
Learning 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. You should know that checking a credit score can either come as a soft inquiry or hard inquiry. Some people believe that checking our credit score can lower their credit score which is not the case in all the situations but this only occurs if you are taking the hard copy inquiry. A soft inquiry is when you want to know about your credit score and goes to look at it but if you want a loan and because of this the bank checks your credit score, this is called a hard inquiry.
Comparing hard inquiry with the soft inquiry. Hard inquiry is made only when a person is applying for a loan of any kind and that is when the person who you want to borrow the money from will check to see if you pay loans as expected but the soft inquiry is not done for the purposes of loan applications. Where possible, make sure that you avoid hard inquiry for it is something that will lower your credit score more and for that reason if you do not need the loan so much you should avoid taking a lot of it when your credit score is negative.
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.
The credit score improves with time and that I the reason you shouldn’t fear checking it so long as what you are doing is a soft inquiry.