Limiting credit applications and history checks

It’s normal and expected that you’ll apply for credit from time to time. When lenders and others ask a credit bureau for your credit report, it’s recorded as an inquiry. Inquiries are also known as credit checks.

If there are too many credit checks in your credit report, lenders may think that you’re:

• urgently seeking credit
• trying to live beyond your means

How to control the number of credit checks

To control the number of credit checks in your report:

• limit the number of times you apply for credit
• get your quotes from different lenders within a two-week period when shopping around for a car or a mortgage. Your inquiries will be combined and treated as a single inquiry for your credit score.
• apply for credit only when you really need it

“Hard hits” versus “soft hits”

“Hard hits” are credit checks that appear in your credit report and count toward your credit score. Anyone who views your credit report will see these inquiries.

Examples of hard hits include:

• an application for a credit card
• some rental applications
• some employment applications

“Soft hits” are credit checks that appear in your credit report but only you can see them. These credit checks don’t affect your credit score in any way.

Examples of soft hits include:

• requesting your own credit report
• businesses asking for your credit report to update their records about an existing account you have with them