The Impact of Soft Inquiries on Your Credit Score

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Understanding Soft Inquiries on Your Credit Report

At O1ne Mortgage, we believe in empowering our clients with the knowledge they need to make informed financial decisions. If you have any questions or need mortgage services, call us at 213-732-3074. In this article, we will explore the concept of soft inquiries, how they work, and their impact on your credit scores.

How Does a Soft Inquiry Work?

A soft inquiry, also known as a soft credit check or soft credit pull, occurs when you or someone you authorize (like a potential employer) reviews your credit report. Companies such as credit card issuers or mortgage lenders may also perform soft inquiries to preapprove you for offers. Unlike hard inquiries, soft inquiries do not affect your credit scores as they are not linked to a specific credit application.

Can You See Soft Inquiries on Your Credit Report?

Yes, you can view soft inquiries on your credit reports. To obtain copies of your credit report, you can request one free copy from each major credit bureau (Experian, Equifax, and TransUnion) weekly through AnnualCreditReport.com. Additionally, you can check your Experian credit report for free. Note that each report may contain different inquiries, as an inquiry is only added to the credit report that was checked.

How Do Soft Inquiries Impact Credit Scores?

Credit scoring models generate your credit score by analyzing the information in your credit report. Soft inquiries do not impact your credit scores. Hard inquiries, on the other hand, may remain on your credit reports for about two years and can affect your scores. However, the impact is usually minimal and short-lived, especially if no new negative information is added to your report. Scoring models typically consider hard inquiries from the past 12 months when calculating your scores.

Should You Worry About Inquiries?

Generally, hard inquiries play a minor role in your credit score, and the fear of a hard inquiry should not deter you from applying for credit when necessary. Soft inquiries are even less concerning, as they do not impact your credit scores, regardless of the number of soft inquiries present in your reports.

For any mortgage service needs, feel free to reach out to O1ne Mortgage at 213-732-3074. Our team is here to assist you with all your mortgage-related questions and requirements.

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