If you’re wondering what the difference is between a soft and hard inquiry, you are not alone.

A hard inquiry is when your credit report is pulled by a lender that wishes to use the information to determine whether or not to lend credit. For example, a hard inquiry would be required when you apply for a mortgage. Such an inquiry may affect your credit score.

A soft inquiry on the other hand can only be seen by you. An example of a soft inquiry is when you check your credit score or get a background check. Such an inquiry does not affect your credit score.

When you view your credit report you will see information such as your address, how your bills are paid, whether you have been sued, whether you have been arrested and even if you have filed for bankruptcy. All of this information is sold by credit reporting companies to creditors, insurers, employers and anyone else who may require this information to evaluate your history.

Reviewing your credit report regularly is often recommended by financial advisors for several reasons. For starters, the information on your credit report impacts your ability to get a loan and also determines how much you will be required to pay when borrowing money. As a result, it is important to ensure that all data is complete and accurate prior to purchasing a house or car. You may also want to check the information on your credit report for accuracy if you are buying insurance and even when applying for a job. Lastly, it is important in order to protect yourself against identity theft. Identity theft is when someone uses your information to commit fraud.

You may have heard that it is important to review your credit report and check for negative items. However, you’re probably wondering what you should be looking for on your report. Some common errors you should look for include:

• Incorrect name, phone number or address and other identity mistakes
• Information that may be about another individual that has accidentally made its way onto your report
• An additional account that is not yours which can be a result of identity theft
• Any closed accounts that are being reported as open
• If you are reported as the owner of an account where you are really only an authorized user
• Remedied delinquencies that have been paid but show as unpaid
• Accounts noted as delinquent when they in fact are not
• Debt that is listed multiple times
• Accounts listed multiples times with different creditors
• Account balances that are not correct
• Credit limits that are not correct

No. You cannot dispute your credit score because it is not included in your credit report. Information on your report changes which can cause your credit score to change. However, you

must place an inquiry in order to obtain your credit score separately. Your credit history, balances, number of accounts, account age and other factors can be disputed if they are found to be inaccurate.

No. Requesting a copy of your credit report will not alter your credit score. Reviewing your credit report yearly is recommended in order to ensure all information is accurate.

A credit report will not include information regarding race, religion, medical history, personal lifestyle, political opinions, friends or criminal record. All information on your credit report is strictly related to your credit.

Information such as missed payments and public records will stay on your credit report for seven years. However, Chapter 7, 11 and 12 bankruptcies may remain for 10 years. Credit history requests will remain on your report for up to 2 years. Any information that is accurate will remain indefinitely.

A consumer disclosure lists all inquiries on your file and any suppressed information that may not appear on a standard credit report. Existing creditors cannot request this file and neither can individuals that are evaluating a credit application.

Here are some signs to look out for if you believe that you are a victim of fraud or identity theft:

• A creditor reaches out to let you know about a credit application with your information
• Phone calls in regards to approval or denial by a creditor although you may have never applied
• Mail that you once used to receive is no longer being delivered to you
• Observing unusual charges on your credit card statements
• A collection agency reaches out to collect for a defaulted account that you did not open