Optimal Finance Daily - Financial Independence and Money Advice 3205: Will Credit Inquiries Hurt Your Credit Score by Miranda Marquit with Good Financial Cents
Jul 8, 2025
Explore how credit inquiries can affect your credit score, focusing on the distinction between harmless soft inquiries and the more impactful hard inquiries. Practical tips highlight the importance of monitoring your score while shopping for financial deals. Discover that responsible money habits matter more than just the number of inquiries. Learn to navigate the credit landscape without unnecessary stress, and don't let a credit pull deter you from seeking lower rates.
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Soft vs Hard Credit Inquiries
- Not all credit inquiries impact your credit score equally; there are soft and hard inquiries.
- Only hard inquiries can damage your credit score, while soft inquiries do not.
Shop Smartly Without Fear
- When rate shopping for loans, keep all credit pulls within a short time frame to minimize score impact.
- Don't avoid credit checks out of fear; shopping around won't severely hurt your credit score.
Credit Score vs Financial Health
- A high credit score doesn't fully indicate good financial health.
- It mainly measures your ability to repay borrowed money, not your overall financial status.