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For the following scenarios, I was informed that there'll be a soft inquiry involved

  • Opening a Checking account at a credit union
  • Requesting a Credit limit increase on a Credit card
  • Signing up for Comcast/Centurylink.

From what I understand, a soft inquiry is not supposed to affect my credit? But isn't that a false statement as a Soft pull is recorded as a credit inquiry which negatively affects my credit score?

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Soft inquiries do not negatively affect your credit score.

From Credit Karma:

Soft inquiries typically occur when a person or company checks your credit report as part of a background check. Examples include employer background checks, getting "pre-approved" for credit card offers and checking your own credit score. A soft inquiry may occur without your permission. Soft inquiries may be recorded in your credit report, depending on the credit bureau, but they won't affect your credit score.

That being said, the examples you provide may actually result in hard inquiries on your credit report. The CLI seems the most likely case where a hard inquiry will result rather than a soft inquiry, and I've read where Comcast will do hard inquiries as well. If you Google all three of your examples, you'll find cases either way. Each bank, credit union, or cable provider will behave differently, so it's difficult to predict what type of inquiry, if any, will occur.

  • For a more complete answer you should address the false information in the question – VBCPP Apr 18 '15 at 2:34
  • @VBCPP Can you please elaborate? – user6123723 Apr 18 '15 at 16:06
  • @user1324816 opening a checking account will rarely result in any inquiry, they use ChexSystems. Requesting a CL inc can be soft or hard depending on the card – VBCPP Apr 18 '15 at 17:16
  • @VBCPP Not true!! Pentagon FCU, Mountain America FCU and a lot of other bank both do an inquiry. Not all banks just use CHEX. I remember Chase doing just a CHEX though for checking. – user6123723 Apr 18 '15 at 20:51
  • Ok, I addressed a bit hard inquiries above. – zanussi Apr 18 '15 at 21:16
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Fundamentally, soft inquiries are checks where no credit is being granted as the result of the check. Because they don't represent borrowing they in no way indicate anything about your ability to repay and thus have no effect on your credit rating.

Hard inquiries, however, involve either the actual paying of money (the utility bills in your list) or the granting of credit, and thus are an indication of the lessening of your ability to repay additional borrowing.

  • When Centurylink did a Soft inqury, my Credit Karma sscore dropped a bit. And Credit Karma used the inquiry for it's grading. I know it's Transunion FAKO but still as per definition, it should ignore it right? Or at least show it to me (Since I can see all soft inquiries including promotional inquiries but the Lenders can't see it). Not sure if can I can see my report through a Lender to clarify if it's affecting my score. – user6123723 Apr 20 '15 at 5:40
  • It would only matter if a lender would use the same system that credit karma uses along with the same criterias. As I understand, most lenders use FICO credit score, so while FAKO gives you some measure of credit worthiness, it is not same system a lender would likely use. – Sun Apr 20 '15 at 16:41

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