Understand what this query is and how it can affect your credit score.
The Mister Finance.
When ordering a financial product, you will likely undergo a credit check by your lender, bank, or service provider.
Thus, the institution assesses your credibility based on the information provided by your credit report.
The credit report defines your credit history, telling you whether you handle your finances well.
As such, a credit check can include your payment history, your payment patterns, and your current debts.
There are two types of credit checks, soft and hard, and the two have different impacts on your credit score.
Normally, soft credit checks do not majorly impact credit history, unlike hard checks, which negatively influence the short term.
But do not worry. A hard credit check can stay on your record for two years, but its impact usually wears off in a few months.
We'll help you identify what causes a hard or soft credit check. Check out the content we prepared on the subject.
To learn how to identify your credit score without making a big impact, click the button below and read the content.