What is Credit Enquiry?
When a company or credit bureau requests information regarding your credit card, it is called a credit enquiry. A company or a financial institute can ask for this information to make their decision about whether or not they should approve your loan request. However, there are multiple reasons why credit enquiries can be made. You can also send a request to check your credit score; it will also be counted as a credit inquiry.
Many credit enquiries can impact your credit score. In such cases, you should consult with a finance broker in Sydney to learn about your credit enquiry and how it impacts your credit score. Credit Enquiries are of two types; they are hard enquiry and soft inquiry.
Hard Enquiry: When you apply for credit, the lender sends a request to access your credit score; this is called a hard enquiry. Too many hard inquiries within a short span of time can negatively impact your credit score. Also, these hard inquiries can stay on your card for a long term making it difficult for you to apply for loans. However, you can get them removed from good credit repair companies.
Soft Enquiry: When you send a request to view your credit score or if some company wants to market their products to you and sends a request, then this comes under soft enquiries. In contrast to hard enquiry, soft enquiry does not affect your credit score.
Does Credit Enquiry Harm Your Credit Score?
Whether or not a credit enquiry harms your credit score depends on various factors. It also depends on the type of enquiry. If it is a hard inquiry, such as if you have applied for credit, such as loans for doctors in Sydney or if you are applying for a new credit card, it can affect your credit score negatively. Hard enquiries can drop your score, especially if there are many inquiries within a limited period of time. On the contrary, if it is a soft inquiry request by you to view your score or by some other companies for pre-approval, then it does not affect your credit score.
For How Long Can Credit Inquiries Stay On Your Credit Report?
In Australia, a hard inquiry can stay on your credit report for up to 5 years. Further, it depends on the enquiries whether it is authorised or unauthorised. If the enquiries are correct and legitimate, then you cannot get them removed. However, if the enquiries are unauthorised, then you can get them removed. Consult with the best finance broker in Sydney to improve your credit score.
You can get inquiries removed if they are:
- Credit accounts that you have never opened.
- Unauthorised or unfamiliar enquiries.
- Payment details that are marked as late payment even when you have proof of paying it on time.
- Your name on a joint account even after you have removed your name from that account.
In all these cases mentioned above, you can get the inquiries removed. However, if the inquiries are correct, then they can stay on your report for a long period of time, ranging between 1 year to 7 years. For instance, an inquiry to get a new credit card will be on your credit report for 5 years, whereas if you have any serious infringement history, then such information can be on your credit report for up to 7 years.
Conclusion
Credit score plays a crucial role and is necessary for various things. Hence, you should use your credit card carefully and shop accordingly. Try not to get too many hard inquiries in a short time period to avoid any negative impact on your credit score. So, if you are applying for loans for doctors in Sydney or if you want to get a new credit card, make sure to consult with your trusted finance partner to avoid any negative impact on your card.
