Improving Credit Scores in Kamloops, BC: Understanding Inquiries

Is your poor credit holding you back from financing a car, getting a mortgage, or securing a rental apartment? You’re not alone. At TransCanada Finance in BC, we help Kamloops consumers repair their damaged ratings by providing the knowledgable advice they need to turn their credit troubles around.

If you’ve recently reviewed your credit report, you may have noticed a list of inquiries (also known as credit checks). When lenders, companies, employers, or landlords request to access your credit information, this appears on your report.

There are two types of credit checks: hard and soft. Understanding what these inquiries mean and how they impact your score is essential when rebuilding your credit rating.


Credit Checks in Kamloops, BC: What are Hard Inquiries

A hard inquiry appears on your credit report when a lender checks your record in response to an application for a new loan, credit card, or line of credit. Some rental and employment applications may also result in hard credit checks, and you must give your consent when authorizing any inquiry.

These hard pulls count towards your credit score and are viewable by anyone looking at your report. Inquiries essentially act as a timeline to show when you have applied for credit. They may also stay on your record for up to 36 months.

Examples of hard inquiries include:
• A credit card company accessing your report after applying for a new card.
• A lender checking your credit after applying for an auto loan.
• A dealership reviewing your credit before leasing a car.
• A financial institution accessing your credit after applying for a mortgage.

Credit Checks in Kamloops, BC: What are Soft Inquiries?

A soft inquiry appears on your report when credit checks are necessary for reasons unrelated to borrowing. These checks are not associated with your creditworthiness or risk, and they have no impact on your rating. 

Examples of soft inquiries include:
• Anytime you request your credit report.
• An internet provider deciding whether a security deposit is necessary on leased equipment.
• An auto insurance company reviewing your credit report to determine premiums.
• A credit card company assessing your score before marketing new products to you.
• A business checking your credit report to update their records about existing accounts.


Why Do Inquiries Matter in Kamloops, BC?

Credit scoring models factor in the number of hard inquiries you have when calculating your score. When too many hard pulls appear on your report in a short timeframe, your creditworthiness may come into question, and you could be deemed too risky.

When rebuilding your credit, limit the number of applications or background checks to maintain your score by:

• Only applying for credit when you need it.
• Grouping multiple quotes from different lenders into a two-week period, which counts as one hard pull.
• Reporting and disputing fraudulent or inaccurate hard inquiries to the credit bureaus.

Rebuild Your Bad Credit in Kamloops With TransCanada Finance

If too many hard pulls have hurt your credit score, call our team at TransCanada Finance in Kamloops. We can get you approved for a secured auto loan and help you restore your credit by making regular, on-time payments in full.  

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