Tag: soft inquiry

GOOD CREDIT SCORE MASTERY: A STEP-BY-STEP GUIDE TO ACHIEVING FINANCIAL FREEDOM

Post author By Brandon Smith
Post date October 21, 2024

good credit score

Good Credit Score: Introduction

Have you ever received your credit score and felt a mix of anxiety and confusion? I remember sitting on my couch, staring at those three digits like they held the keys to my financial future. Well, it turns out they do!

Join me as we explore the intricate world of credit scores, unveiling unexpected truths and strategies to getting a good credit score, that can transform how you manage your finances.

Good Credit Score: The Basics – What is a Credit Score?

When I first heard about credit scores, I thought, what exactly does that number signify? A credit score is a three-digit number that reflects our financial reliability, primarily based on our borrowing and repayment history. It’s a critical piece of our financial identity that we often overlook. But let’s dive deeper into the essence of a credit score and what it truly means.

Understanding the Definition of a Credit Score

A credit score ranges from 300 to 900. This number is not just arbitrary; it comes from a credit scoring model using tried and true credit scoring formulas. The calculated number represents how trustworthy we are when it comes to handling borrowed money. Potential lenders, in turn, evaluate these scores to determine how risky it may be to give us a loan or credit. I find it fascinating how this little number can open or close doors in our financial lives.

So, why is this score so important? It’s described as a financial snapshot. Think about it: if we picture our financial behaviours as a photo, our credit score is the snapshot that reveals our payment history, credit utilization rate, credit mix, length of credit history, and recent inquiries. It’s like a report card for our finances!

Factors Affecting Good Credit Scores and How It Serves as a Tool for Lenders

But how does this impact us? Well, lenders rely heavily on credit scores. They use these scores not only to judge whether we will get approved for a loan but also to decide the interest rates we might face. A good credit score often translates into lower rates. Isn’t it interesting how something we rarely think about can affect our wallets so intensely?

To further unpack this, here are the five core factors that contribute to our credit scores:

Payment History: This is the most critical factor. Late payments are red flags, signalling a higher risk to lenders.
Credit Utilization: This refers to how much of your available credit you’re using. Maintaining a lower utilization rate can positively impact your score.
Credit Mix: Having a diverse portfolio of types of credit products, such as credit cards, auto loans, other personal loans, lines of credit and mortgages, shows that we can manage various forms of debt responsibly.
Length of Credit History: This reflects how long our accounts have been active. Surprisingly, closing old accounts can shorten our credit history, potentially dragging down our score.
Recent Inquiries: Every time we request credit, it could lower our score slightly, but multiple requests for various loans in a short time frame are grouped to minimize the impact.

Understanding these components is empowering. It’s like gaining a set of tools to improve our financial picture one day at a time.

Quotes for Inspiration

Your credit score is like a financial report card.

I couldn’t agree more. This “report card” reflects our past decisions and significantly influences our future options. Isn’t it incredible that from just one score, lenders can gauge our financial responsibility?

A Deeper Look at Good Credit Scores

As we journey through understanding credit scores, we start seeing that these numbers are more than just statistics. They represent our financial habits and choices. Small, consistent actions can lead to improvements. For instance, setting up payment reminders can help ensure we never miss a due date again.

Another lightbulb moment came to me when I learned about the strategy of becoming an authorized user on someone else’s credit card. This allows us to benefit from their positive credit history. Just like that, a simple choice can positively influence our scores.

Regularly reviewing my credit report is now a part of my routine too. We are entitled to a free credit report annually from each of our two major credit bureaus; Equifax Canada and TransUnion. This enables us to identify and dispute potential errors. This is an empowering step to ensure our scores accurately reflect our financial behaviours.

In summary, appreciating what a good credit score is and how it functions is a game changer. It transforms a source of anxiety into something we can actively manage. By choosing to understand and improve our scores, we pave the way for better financial opportunities and decisions.

good credit score

The Impact of Your Credit Score on Life Decisions

Have you ever stopped to think about how much your credit score influences your life? It’s a powerful number, often lurking in the shadows of our financial choices. In reality, your credit score acts like a financial report card, detailing how reliably you manage money. And it can impact various aspects of your life in significant ways.

1. Loan Approvals and Interest Rates

Let’s talk about loans. Having a good credit score can work in your favour when you’re looking to borrow money. Lenders typically see higher scores as a sign that you’re a responsible borrower, which can increase your chances of getting approved for a loan.

Approval Chances: A higher credit score significantly boosts your chances of approval.
Interest Rates: With a good credit score, you are likely to qualify for lower interest rates, which can lead to considerable savings over time.

A better score can save you thousands throughout a loan.

So, how do you keep your credit score in good shape? The key is to make your payments on time. Think of it like taking care of a plant; if you ignore it, it won’t thrive. Late payments can damage your credit score, so it’s important to stay on top of them.

2. Impact on Renting Apartments

Next, we explore the impact of renting apartments. Many landlords perform credit checks as part of their application process. Here’s where a good credit score can make a difference.

Application Success: A good credit score can tilt the odds in your favour when it’s time to secure the perfect apartment.
Security Deposits: Higher scores might even lead to lower security deposits. A landlord sees you as a lower credit risk tenant.

As we navigate the rental community, we realize that

“It can influence everything from renting an apartment to even landing a job.”

Your credit score isn’t just a number; it’s a key that unlocks doors—or, in some cases, locks them shut.

3. Influence on Job Prospects

Believe it or not, your credit score can even affect your job prospects. While not all employers check credit scores, those in certain industries do. For example, financial institutions often look for a history of responsible credit management when hiring.

Job Applications: A poor credit score could run the risk of disqualifying you from certain positions.
Trust Factor: Employers want to know that you’re trustworthy with money—especially if you’re handling theirs.

Taking responsibility for your credit score is about more than just numbers. It’s about securing your future, whether it’s a new apartment or that job you’ve been dreaming of.

4. Other Influences

As if those factors weren’t enough, let’s talk about how your credit score can also influence your insurance premiums. Many insurance companies check your credit history. A lower score might lead to higher rates.

Ultimately, one thing is clear: a good credit score often translates to better financial opportunities. Just like a compass directing you to your destination, your credit score guides you in the right direction toward your financial goals.

In conclusion, starting to manage your credit responsibly is important. Little efforts can produce big results. So, let’s take charge—whether it’s changing payment habits or conducting a regular credit report check. Our credit scores are a reflection of our financial journey, and we have the power to shape that journey.

Decoding the Factors Affecting Credit Scores: What Goes Into Your Credit Score?

As I embarked on my journey to understand credit scores, I found myself face-to-face with a complex yet fascinating concept. Credit scores influence many aspects of our lives—from loan approvals to renting an apartment, and even landing a job. But what exactly is a credit score? Imagine it as your financial report card, reflecting how reliably you’ve borrowed and repaid money over time. This three-digit number holds the key to unlocking various financial opportunities.

The Major Components of a Credit Score

There are five essential building blocks of your credit score:

Payment History
Credit Utilization
Credit Mix
Length of Credit History
Hard Credit Inquiries

Let’s dive deeper into these components. First up, is payment history. This is the most significant factor; it accounts for a whopping 35% of your score! It’s like the backbone of your credit score. Late or missed payments stand out vividly to lenders, waving a big red flag. As I’ve learned, “Without a doubt, it’s your payment history.” A consistent habit of on-time payments can create an aura of reliability around you.

good credit score

Detailing Payment History and Its Importance

Why is payment history so crucial? Think about it this way: if you were a lender, wouldn’t you want to know how likely you are to get your money back? That’s why evaluating a borrower’s payment habits is essential. Late payments negatively affect your score; they’re like stains on a pristine shirt. It takes a lot longer to clean up that mess than to keep it clean in the first place.

So, what can you do? Establishing reminders through your bank’s online platform or using calendar alerts can be life-saving. By maintaining consistent, on-time payments, you’re crafting a positive credit history that speaks volumes about your financial responsibility.

Understanding Credit Utilization

Next, let’s focus on credit utilization. This term refers to the percentage of your available credit that you’re currently using. It’s not just about how much debt you have; it’s about the percentage of that debt to your total credit limit. Now you can see why it’s important! As I learned, “It’s about the percentage, not just the raw amount of debt.”

Maintaining a low credit utilization ratio is indicative of responsible credit management. A widely accepted guideline is to keep this percentage below 30%. For instance, if you have a credit limit of $10,000, it is advisable to maintain your balance below $3,000. This practice signals to lenders that you represent a lower risk.

Credit Utilization Calculation	Example Amount	Total Credit Limit	Utilization Ratio
Current Balance	$2,500	$10,000	25%
Current Balance	$4,000	$10,000	40%

The table clearly shows that how you manage your balances can have a big impact on your credit score. Keeping your balances low is important for maintaining a good credit score over time.

Putting It All Together

Understanding the major components—payment history and credit utilization—forms a solid foundation for navigating the credit landscape. I realized that taking control of my credit score does not mean chasing perfection. Instead, small, consistent efforts can lead to immense improvements over time. Whether it’s paying your bills on time or actively managing your credit utilization, embracing these practices empowers you to take charge of your financial future.

In this journey, I’ve transformed my perception of credit scores from anxiety to empowerment. By digging deep into these factors, I’m reshaping my financial narrative. Credit scores may seem daunting, but with the right knowledge, we can navigate them confidently, building the foundation for a brighter financial future.

good credit score

Strategies for Improving Your Credit Score

Improving your credit score may seem like a daunting task. However, I’ve learned that you don’t always need drastic changes to see results. Instead, it’s often about establishing simple, healthy financial habits that can produce long-lasting improvements. Let’s delve into some effective strategies that can help boost your chances of establishing a good credit score.

1. Establishing Consistent Payment Habits

One of the most critical factors to having a good credit score is your payment history. It’s like the bedrock upon which your credit score is built. Late payments? They’re big red flags to lenders. How can we ensure our payments are always on time? Setting up payment reminders can be a game-changer. Whether through your bank’s online platform or handy calendar alerts, these reminders can prevent missed due dates. Suddenly, what seemed like a chore became manageable with a few simple tweaks.

Consistency is key. I discovered that if we focus on making payments on time, we can create a positive ripple effect in our credit history. Imagine your score gradually inching up each month as you stay committed to timely payments. The quote

“Small changes can make a huge difference.”

resonates deeply here. Indeed, it’s those tiny, consistent actions that lead to substantial improvements over time.

2. Managing Credit Utilization Effectively

Next up is credit utilization. Have you ever heard that phrase before? It’s all about understanding the amount of credit we are using against our total available credit. Lenders love it when you keep your utilization low. Think of it this way: imagine you own a store, and you’ve got a massive warehouse full of goods. If you’re selling only a tiny fraction of those goods, it shows you manage your inventory well. Similarly, keeping your credit utilization below 30% can portray you as a low-risk borrower. It’s essential to monitor how much of your available credit you’re using.

Reduce high-balance credit card accounts to improve your utilization ratio.
Consider requesting higher credit limits, but do so wisely.
Avoid closing old accounts, as they can help maintain a higher total available credit amount.

Managing your credit as a reflection of your financial accountability helps lenders see your reliability.

The most significant improvements often come from focusing on the fundamentals.

In this case, keeping a close eye on credit utilization certainly feels fundamental.

3. Becoming an Authorized User on a Trusted Account

Another powerful strategy involves becoming an authorized user on someone else’s credit card. Now, this isn’t just a simple favour; it’s a strategic move! By being added to a trustful individual’s account, you can inherit their positive payment history, provided the account remains in good standing.

Think of it like being an apprentice. You learn from the best and get to benefit from their experience. Be sure to communicate openly with the account holder, ensuring they maintain their end of the bargain by making timely payments—after all, their actions directly impact your credit score.

Improving your credit score does not require drastic shifts in your financial routine. Remember these essential strategies:

Establish consistent payment habits to boost your payment history.
Manage your credit utilization effectively to depict fiscal responsibility.
Become an authorized user of a trusted account to benefit from positive credit behaviours.

By incorporating these strategies into your daily financial habits, you pave the way toward a robust credit profile. A strong and good credit score can enhance numerous aspects of life—from lower loan interest rates to better job opportunities.

Let’s embark on this journey toward financial strength together, understanding that every small step taken contributes to our overall success. Each decision we make brings us closer to financial empowerment.

Expert Insights For a Good Credit Score: Common Myths and Misconceptions about Credit Scores

Understanding credit scores is essential for anyone trying to manage their finances better. Many of us grow up hearing various myths and misconceptions about these three-digit numbers. But what if I told you that some of these beliefs are not true? I am passionate about debunking these myths because I’ve seen how they can lead to poor financial decisions. Let’s dive into two major misconceptions surrounding credit scores: closing old accounts and understanding hard versus soft inquiries.

1. Debunking the Myth of Closing Old Accounts

One common myth is that closing old credit accounts can simplify your finances. It sounds logical, doesn’t it? Why keep accounts you don’t use? However, closing older accounts can harm your credit score. This is because it negatively impacts your average credit age. Your credit score is influenced by several factors, and one key component is how long you’ve held your credit accounts. The longer your credit history, the better your score tends to be.

Imagine you’re building a portfolio of achievements throughout your life. Each new accomplishment adds to your reputation. Similarly, every year an account stays open and contributes to your financial history. So, ask yourself: why would you want to erase your past accomplishments?

Instead of closing old accounts, consider keeping them open—perhaps just setting them aside for emergencies. The positive impact on your credit score can be significant. Not only does it help your average credit age, but it also increases your total available credit, which can further enhance your credit utilization ratio.

“It’s all about the long game with credit.”

2. Understanding Hard Inquiries vs. Soft Inquiries

Another area clouded in credit checks confusion is the difference between hard inquiries and soft inquiries. Knowing the distinction is essential for making informed decisions about your credit. So, let’s clear up the fog.

Soft Inquiries: These occur when you check your credit score or when companies do a background check without your permission. Soft inquiries do not impact your score.
Hard Inquiries: These happen when a lender checks your credit report to make a lending decision. Hard inquiries typically stay on your report for about two years—however, they tend to have a minimal impact if you practice good credit habits.

Think of it this way: if checking your credit report is like glancing at the weather, a hard inquiry is more like getting caught in a storm. It has a more lasting effect, but it will pass if you take care of your credit health.

Creating a strategy for managing these inquiries is vital. I learned that if you’re shopping for a loan, it’s wise to limit hard inquiries. Most lenders will group inquiries made within a short period for the same type of loan. This means you can effectively “rate shop” without all your inquiries adding up to a detrimental effect on your score.

good credit score

Good Credit Scores FAQ

What is a credit score? A credit score is a numerical representation of your creditworthiness, reflecting your ability to repay debts and manage financial obligations. Lenders, landlords, and even potential employers may use your credit score to assess your financial responsibility.
How does my payment history affect my credit score? Your payment history is the most crucial factor. Late payments, missed payments, collections, and bankruptcies can severely damage your credit score. It’s essential to prioritize paying bills on time to maintain a good credit history.
What is credit utilization and why is it important? Credit utilization is the ratio of your credit card balances to your total credit limit. A high credit utilization ratio suggests you’re relying heavily on credit, which can negatively impact your score. Aim to keep your utilization below 35% for a healthy credit profile.
Does closing old credit accounts help my credit score? Contrary to popular belief, closing old accounts can hurt your score. It shortens your credit history length and can increase your credit utilization ratio if you have outstanding balances on other cards. It’s generally best to keep old accounts open, even if you don’t use them frequently.
What’s the difference between a hard inquiry and a soft inquiry? Hard Inquiry: Occurs when you apply for credit and the lender checks your credit report. These inquiries can slightly lower your score. Soft Inquiry: Occurs when you check your credit report or a company checks your credit for pre-approval offers. Soft inquiries don’t affect your credit score.
How can I improve my credit score? Improving your credit score takes time and effort. Focus on consistently paying bills on time, reducing your credit card balances, and avoiding unnecessary credit applications. Regularly monitoring your credit report can help identify areas for improvement.
Where can I access my credit report? You can obtain your credit report for free from both Equifax and TransUnion, Canada’s two national credit bureaus. Review your report for any inaccuracies and dispute any errors to ensure the information is up-to-date and correct.
What are the key factors influencing my credit score? Five main factors determine your credit score:

Payment History: Paying bills on time demonstrates responsible credit management and significantly impacts your score.
Credit Mix: Having a variety of credit accounts (e.g., credit cards, loans) shows you can handle different types of credit responsibly.
Credit Utilisation: This refers to the percentage of your available credit you’re currently using. Keeping it below 35% is recommended.
Credit History Length: A longer credit history generally reflects greater financial experience and can positively impact your score.
Credit Inquiries: Applying for new credit results in inquiries on your report. Too many inquiries in a short period can lower your score.

Good Credit Score Final Thoughts

In summary, many misconceptions about credit scores can easily mislead us. Closing old accounts to simplify finances is counterproductive and can negatively affect our average credit age. Likewise, understanding the nuances between hard and soft inquiries is crucial for informed decision-making. These misunderstandings often leave people feeling lost in a sea of financial uncertainty.

Education is key. By understanding these aspects, you can take proactive steps to manage your credit wisely. I now realize that small, consistent efforts can lead to significant improvements in my credit score. It’s empowering to know that I have control over my financial future, and that’s a lesson I think everyone should embrace!

I hope you enjoyed this good credit score Brandon’s Blog. Do you or your company have too much debt? Are you or your company in need of financial restructuring due to distressed real estate or other reasons? The financial restructuring process is complex. The Ira Smith Team understands how to do a complex restructuring. However, more importantly, we understand the needs of the entrepreneur or someone with too much personal debt.

You are worried because you are facing significant financial challenges. It is not your fault that you are in this situation. You have been only shown the old ways that do not work anymore. The Ira Smith Team uses new modern ways to get you out of your debt troubles while avoiding the bankruptcy process. We can get you debt relief freedom using processes that are a bankruptcy alternative.

The stress placed upon you is huge. We understand your pain points. We look at your entire situation and devise a strategy that is as unique as you and your problems; financial and emotional. The way we take the load off of your shoulders and devise a plan, we know that we can help you.

We know that people facing financial problems need a realistic lifeline. There is no “one solution fits all” approach with the Ira Smith Team.

That is why we can develop a restructuring process as unique as the financial problems and pain you are facing. If any of this sounds familiar to you and you are serious about finding a solution, contact the Ira Smith Trustee & Receiver Inc. team today.

Call us now for a free consultation. We will get you or your company back on the road to healthy stress-free operations and recover from the pain points in your life, Starting Over, Starting Now.

The information provided in this Brandon’s Blog is intended for educational purposes only. It is not intended to constitute legal, financial, or professional advice. Readers are encouraged to seek professional advice regarding their specific situations. The content of this Brandon’s Blog should not be relied upon as a substitute for professional guidance or consultation. The author, Ira Smith Trustee & Receiver Inc. as well as any contributors to this Brandon’s Blog, do not assume any liability for any loss or damage resulting from reliance on the information provided herein.

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Brandon Blog Post

SOFT CREDIT CHECK: TWEAKS YOU CAN DO TO MAKE IT HARD AND HAPPY

Post author By Brandon Smith
Post date May 3, 2021

We hope that you and your family are safe, healthy and secure during this COVID-19 pandemic. Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

If you would prefer to listen to the audio version of this Brandon Blog, please scroll to the very bottom and click play on the podcast.

Soft credit check introduction: What is a credit score?

When you apply for a loan, or to rent someone’s house, condo or apartment, the bank or landlord will very likely do a credit check on you. What will be of importance to them, amongst other things, is your credit score.

A Canadian credit score is a three-digit number used to indicate the creditworthiness of a debtor, based upon the info in their credit report. It is determined by looking at several factors, including if you usually pay your bills on time, just how much of your readily available credit you use, the number of charge cards you have, as well as your basic level of financial debt. The score ranges from 300 to 900 and also represents the chance that you will pay every one of your expenses on time.

There are two methods that either you or a potential lender can do a credit check on you: soft or hard. Keep in mind that even a potential landlord can fall into the category of prospective lenders. They will be advancing your credit in the form of their property. They are entrusting the tenant to take possession of their property, in return for paying for that privilege every month. In that way, a landlord is also extending credit to a tenant.

Have you ever wondered what the difference is between a soft credit check and a hard credit check? Well, in this Brandon Blog I am going to explain the difference between them for you.

Overview: Hard vs. Soft inquiries on your credit report (And Why They Matter)

The hard inquiry is a credit check that will show up on your credit report. These types of inquiries are typically the result of applying for a new loan, credit card or insurance quotes. A hard inquiry will typically stay on your credit report for up to 3 years.

A soft inquiry, on the other hand, is a credit check that does not show up on your credit report but is visible to creditors. A soft inquiry could be the result of checking your own credit score or shopping around for a new cell phone or cable plan.

More details: What is the difference between hard and soft credit inquiries?

What is a soft credit check you ask? A soft credit check request is something you can do at the beginning of your search for a loan. It will help you to know what your credit score is to help you get better loan rates, special promotions or offers a bank may be running or even help you secure that loan for which you might not qualify if your credit score was outside of an acceptable range. Knowing that information upfront can help you negotiate better for that loan deal you want.

A soft credit check is a surface-level credit inquiry that is used to get a preliminary assessment of your creditworthiness. These take place when you check your credit report or when a lending institution checks your score to pre-approve you for special deals. Soft checks do not influence your credit rating.

A hard credit check is basically a check performed by a company to find out your credit history and score. A hard credit check is different than a soft credit check. Hard checks are performed by companies that decide whether or not to lend you money. Sometimes, a hard check is also referred to as a hard credit inquiry. While a hard check is more informative than soft pulls, it can also adversely affect your score if too many checks are performed.

Sometimes you will enter into a contract for a product or service that requires you to provide authorization on the credit applications to access your credit report and credit score. Whether you are applying for a cell phone contract, to a credit card company, or applying to mortgage lenders or for auto loans, the company is going to check your credit report and score. Knowing what is a “hard credit check” can help you decide if it is worth it to use the service or not.

How could a hard credit check affect your credit score when a soft credit check will not?

Many consumers have a good credit score, but when you are one of the millions of consumers who do not, it can be difficult to get that coveted loan or credit card. To make sure that you do not have to deal with a hard credit check, you should make sure that you have no missed payments on your credit reports and that you have a diverse mix of credit (credit cards, store cards and installment loans, for example).

A hard inquiry can harm your credit score, but usually by just a few points. But how much your score is affected can depend on your specific financial situation.

Having too many inquiries on your credit report especially within a short period of time may also have an impact. And if your credit report shows multiple credit applications within a short period of time, it might appear to lenders that your finances have changed negatively.

When you apply for credit, as I mentioned, a hard credit score check is the way a potential lender can take a deep dive into your credit history. A putative lender would do so to determine if they should approve you for the credit you are applying for. This is different from a cursory soft credit check so a lender can tell you if you might qualify for a special deal or are doing your own self-assessment.

If you’ve ever before been denied for financing, denied an apartment, or had your car loan application rejected, you probably went through a hard credit check and the financial institution or landlord you approached was not happy with your results.

Soft credit check: How your initial credit limit is determined

The normal question individuals typically ask is why their credit line is not higher. In fact, the question is so usual, some credit card companies have their own applications that you can use to forecast your credit line. Nonetheless, as you may anticipate, the response is not quite as straightforward as the credit card issuers would like you to believe.

Your credit rating is an important metric in establishing what your credit line will be set at. If you have an inadequate credit rating, expect a lower credit limit and various other unfavourable terms. On the other hand, a high credit score offers you the opportunity to shop around to find the best credit card agreement and credit card issuer for you.

Soft credit check: Who creates your credit report and credit score?

Each time you make an application for a credit card, a car loan or home mortgage, your credit report is evaluated by the loan provider you are applying to. Your credit report is a document of the financial commitments you have actually currently incurred (credit cards, personal loans, lines of credit and mortgages) and your payment history. It is obtained from one of the two credit bureaus in Canada.

By now you should understand that the higher your credit score, the better your chances are to be approved for the loan or credit card you are applying for. This is because your credit rating will be seen as a lower threat to default, and therefore the bank will feel more positive that you will pay off any credit extended to you.

TransUnion and Equifax Canada are the two credit bureaus in Canada that contain your credit information. Lenders will use one of these two businesses to do the soft credit check or the hard credit check on a potential borrower or existing customer requesting additional or new credit.

These are private businesses that collect, store and share details concerning just how you use debt. Equifax Canada and TransUnion just collect information from creditors concerning your financial experiences in Canada.

Can a lender do a soft credit check or any type of inquiry without my permission?

If you are applying for credit from a financial institution or another type of lender, you will be asked to provide the authorization for them to do search one of the two major credit bureaus in Canada on you as part of their normal credit process. A lender cannot perform a hard credit pull without your OK.

No pre-authorization is required to do soft pulls. Perhaps you wish to just discover if you meet the requirements for a unique promo they may are promoting on one or more of their credit products. Or, possibly the loan provider wants to get a quick picture of your credit file to see if it is worth investing the time running you through their credit application process. The lender can get a response to both issues by carrying out a soft inquiry on you. That they can do soft credit pulls on their own.

Soft credit check: How long inquiries stay on your credit report

Your credit rating is a snapshot of your financial life, and it is important for obtaining credit, renting an apartment, even getting a job. But what happens if you want to buy a house, apply for a job, or apply for a loan and you have a negative or positive inquiry on your credit report? It is important to know how long an inquiry will remain on your report.

The rules surrounding credit inquiries and how long they stay on your Canadian credit report are a little different than in the US. In the US, hard inquiries generally stay on your record for 2 years. In Canada, there is no specific set amount of time that they stay on your report. The length of time a new inquiry is reported is determined by the business that requested the inquiry. According to Equifax Canada, a hard inquiry may not drop off your report for up to 36 months.

Home & Car Insurance Savings From Good Credit Scores

If you’ve ever shopped for auto insurance or homeowners insurance, you’ve no doubt been pressured to buy coverage you don’t need or a policy that seems like the insurance costs are just too high? If that sounds like you, don’t be ashamed! To avoid this, you should first know your credit score, since that will be the key to getting the best insurance rates.

A good credit score does more than simply affect the interest rates you pay on loans – it also affects the rates you pay on your insurance. This is because insurance companies consider your credit score when setting the rates you pay because it correlates to your likelihood of filing a claim and the likelihood of that claim being paid.

In addition, your mortgage company, your landlord and your car dealership will check your credit score when renting property, leasing a car or deciding how much of a down payment you can afford.

Can prospective employers perform a credit check on me?

If the job application you signed gives a potential employer permission to do a hard inquiry on you, then they can. Bad credit history can have many consequences that far exceed a simple refusal to get a loan. It can prevent you from getting a job, and destroy your self-esteem. How do you know if your bad credit is affecting your life? The first step is to find out what’s on your credit report.

The next step is to realize that your negative financial situation didn’t happen overnight. Your financial problems are a result of both bad luck and poor judgment.

Most of us have been there: you’re ready to start your career, turn over a new leaf and begin a new chapter in your life, but you get rejected for a job because one of the background checks turns up a bad credit report. And you are confused. You didn’t know that your report included bad credit information. And you didn’t know that you could fix a bad credit report.

But you can. As I already mentioned, it starts with you doing a soft inquiry on yourself and finding out what the bad information is. Or, once a year, for free, you can do a hard inquiry on yourself and really drill down to find out what negative information is causing the roadblock to your moving forward in life. I highly recommend that you do so as the start to improving your financial situation.

Soft credit check a summary

I hope you enjoyed the soft credit check Brandon Blog post. You may be very upset and frustrated over the current pandemic situation and your personal financial problems. You may even be downright depressed. The entrepreneur may be very frustrated that the company can no longer pay all its debts as they come due.

There may be sufficient value to take care of the secured creditor, but nothing for anyone else, including the unsecured creditors. There may be some business units that should not survive, but if cut out, the business will be viable. A receivership might very well accomplish the goals for the entrepreneur also. I have many times structured a receivership process, in order to meet the goals of the entrepreneur, while satisfying the requirements of the secured creditor.

Are you worried because you or your business are dealing with substantial debt challenges and you assume bankruptcy is your only option? Call me. It is not your fault that you remain in this way. You have actually been only shown the old ways to try to deal with financial issues. These old ways do not work anymore.

The Ira Smith Team utilizes new modern-day ways to get you out of your debt difficulties while avoiding bankruptcy. We can get you the relief you need and so deserve.

The tension put upon you is big. We know your discomfort factors. We will check out your entire situation and design a new approach that is as unique as you and your problems; financial and emotional. We will take the weight off of your shoulders and blow away the dark cloud hanging over you. We will design a debt settlement strategy for you. We know that we can help you now.

We understand that people and businesses facing financial issues need a realistic lifeline. There is no “one solution fits all” method with the Ira Smith Team. Not everyone has to file bankruptcy in Canada. The majority of our clients never do. We help many people and companies stay clear of bankruptcy.

That is why we can establish a new restructuring procedure for paying down debt that will be built just for you. It will be as one-of-a-kind as the economic issues and discomfort you are encountering. If any one of these seems familiar to you and you are serious about getting the solution you need, contact the Ira Smith Trustee & Receiver Inc. group today.

Call us now for a no-cost consultation.

We will get you or your business back up driving to healthy and balanced trouble-free operations and get rid of the discomfort factors in your life, Starting Over, Starting Now.