As many already know, when a person wants to take a loan or a loan, the lender will make a request to the Bureau of Credit Histories in order to assess a potential borrower. In addition, any solvent adult can request their CI data on their own for review.
Thus, there are two types of credit history requests – soft and hard. They differ in how deep analysis will be carried out after processing the request. When you make a request yourself, you get superficial data and an overall assessment, and in case of a hard request, the bank or Payday Loan can get more detailed information to assess your risks when issuing a loan.
This is when the data is requested by the owner of the CI or an authorized organization, but this is done not to take another loan or a loan, but to get information in order to know what you can count on. Such a report can only be received by the owner. In this case, this query will not affect the total score of your story. Unlike those when a request is made immediately before taking a loan.
A soft query can be used to evaluate your capabilities. For example, if you are interested in a promotional or pre-approved credit card or when communicating with a potential employer, you need to show how you feel about your financial obligations. You can also use such a request if you carefully monitor your finances and constantly improve your financial literacy.
A hard credit history request, on the contrary, can and, in most cases, will affect your CI and, most likely, negatively. The fact is that a hard inquiry occurs when the owner of the CI intends to take a loan or a loan and the lender wants to examine in detail the potential borrower. For a total score, this means that you too often apply for financial assistance to credit institutions. It is not necessary that each such request will worsen the CI, but if there are more records of hard requests than any other (taking a loan, paying off a loan, making payments on loans, etc.), then the estimate will decrease.
We should not forget that credit organizations evaluate the history of the borrower in different ways. Each lender has their own requirements for the client. Therefore, it is easier to take a microloan than a bank loan – appraisers in Payday Loans are less demanding. Also, microfinance companies are more likely than banks to make a soft request to make a decision on extradition, and such a request will not worsen your CI.
If you take a loan from our company and make mandatory payments on time, you can improve your CI. A loan with a bad history is difficult to take in a bank. In addition, your every appeal to the bank will worsen your assessment. But, if you decide to take a loan to improve your credit history with us, first of all you will not receive another record of a hard request to your CI and (in 9 cases out of 10) you will receive a long-awaited loan.
If, suddenly, in any organization in order to receive the service, you need to make a request to the CII, we strongly recommend that you ask what kind of request will be hard or soft. Today it can happen if you want to rent an apartment or a car, increase your credit limit or open a savings account in a bank.