Frequently Asked Questions(FAQ)

Can a prequalification hurt Your credit score?

Prequalifications are conditional approvals based on the information a lender already knows about you. A prequalification process won't negatively affect your credit score. However, once you formally apply for the loan, it can either hurt or help you, depending on how many recent loans you have applied for. 

What is a hard credit inquiry vs. a soft credit inquiry?

A hard inquiry, sometimes referred to as a hard credit check, affects your credit score and is made by lenders after you apply for credit. Soft inquiries, consist of credit file reviews, including reviews of accounts you currently have with lenders, prescreening inquiries by potential lenders, and your requests for your annual credit report. Soft inquiries do not impact your credit score.

Do lenders see a different credit report?

Most lenders (90 percent of the top lenders in the U.S.) use FICO® Scores to guide credit-granting decisions. However, a lender may look at credit reports from any one or more of the credit bureaus (Equifax, Experian, or TransUnion).

Do lenders look at Equifax or TransUnion?

Lenders can choose which credit bureau to receive information from. And in some cases, especially when it comes to applying for a mortgage, the lender may look at all three. Lenders often take all three of your scores to get an average. 

What do creditors see when they do a credit check?

When a creditor or potential lender pulls a hard credit check on you, they will see the following data points via your credit report.

  • Personal information
  • Account information
  • Bankruptcies
  • Collections
  • Unpaid child support and alimony 

About the Authors

Ann Bloomquist

Written by: Ann Schreiber

Seasoned Copywriter & Content Marketer

Ann have been a marketer and a content writer for over 20 years. She have worked for financial institutions such as FICO, Experian, and BlueChip Financial as a director of content and brand marketing.

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