Best Consumer Protection Lawyers in Taunton, MA

A critical part to getting a good interest rate on a car loan or mortgage will be your credit score, so it is beneficial to know how your score is calculated. Some factors are obvious, like whether you are behind on any payments and whether you are too close to the credit line for a significant number of your obligations. But did you know that just applying for credit might also work to bring down your credit score? When you make a credit application the lender will take a look at your credit. This is called an inquiry, and there are two different types of credit inquires. There are soft credit inquiries and hard credit inquiries and here is what you need to know about how they differ: • A soft inquiry will not generally result in any change in your credit score. Some good examples of soft inquiries include mortgage applications for preapproval, and inquiries made by potential employers as part of a background check. • A hard credit inquiry will go on your credit, and when too many of these accumulate your score can decrease. An example of a hard inquiry is when you apply for a loan and the lender pulls your credit to make a final lending decision. Anytime you get an offer in the mail for a credit card and decide to fill it out, a hard inquiry is made. If you are buying a car, or applying for another type of loan, the creditor will make a hard inquiry. For more information about what to do if you have more debts than you can pay, call us today or reach us online.