When you check your credit report, you may be surprised to find that it has dropped a number of points. Despite not opening any new accounts or missing any payments, you may not know why this has happened. If this is the case, you may want to look into your inquiries section where the problem could be located. If you find a large number of inquiries on your report, the following blog explores the impact it can have on your credit score and why you should connect with a Los Angeles, California credit report lawyer if you find a hard inquiry you do not recognize on your credit report.
Soft vs. Hard Inquiry: How Are They Different?
On your credit report, you’ll find two inquiry sections on your report. The first is your hard inquiries, which happen when you apply to open a new account or take out a loan. When you submit this information, the creditor will check your credit score to see if you would be a risky client to lend to. Every hard inquiry on your account will reduce your score by a few points.
On the other hand, you’ll also have soft inquiries appear in your report. As a consumer, your information is constantly moving around, and companies will perform “soft” inquiries on your account to determine if you would be a good person to advertise to. You can also perform a soft inquiry of your own account by checking your credit report. Because you did not request these inquiries into your account, you are not penalized for them.
Though it may not seem like a big deal to have a few hard inquiries on your account, you’ll find that too many at once can cause your credit score to drop more than expected. Additionally, if there are a number of these on your report, you may find that lenders are less likely to approve your application, as a number of hard inquiries at once could suggest that you are in debt and looking for quick relief. As such, you may be deemed a high-risk client.
Is It Possible to Dispute the Inclusion of an Inquiry?
Generally, each hard inquiry performed on your account will remain on your report for two years, but it will typically only impact your score for around a year. Additionally, if you’ve requested the inquiry by applying for a car loan, for example, you will not be able to have it removed from your account for two years.
However, if you did not request the inquiries, you’ll find that you can dispute the inclusion of the information on your report. Typically, this is the result of a credit file switch or identity theft. Regardless, you can file a dispute to remove it.
As you can see, finding incorrect information on your credit report can be complex, so it’s in your best interest to connect with an experienced attorney who can help guide you through these matters. At Los Angeles Legal Solutions, our dedicated team will do everything possible to assist you during these times. Connect with us today to learn how we can fight for you.
