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How many points does each loan inquiry take away from your credit?

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Wiki User
2006-09-21 01:40:17

There are 2 types of credit "hits". A hard credit check in which

the"loan" company inquires about you to all the 3 major bureau"s .

This type of credit check takes away 4 points or so ( points that

take months to get back if you always pay existing loans or cards

on time ). A "hard" check is necessary when applying for personal

loans, mortages, major credit cards ect. A "soft" hit tkes away 2

or 3 points. A retail store credit card, a gas station card , a

cell phone account, ect ect. I also found out that NOT applying for

any credit ups your score by a few points every quarter.( hey; you

don"t even have to do anything). If you don"t pay your existing

cards on time that negatively affects your score by a few points. I

do know for sure that if you want any kind of a personal loan in

the future with a decent interest rate, you must have the "points"

to back you up. Anything less than 600 and you will be paying a

"loanshark" for years. (this is true for Canada)

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