Hawkeye Associates wants you to believe they are offering loans with APRs as low as 3.02%. They have begun flooding the market with debt consolidation and credit card relief offers. The problem is that the terms and conditions are at the very least confusing, and possibly even suspect. Do you really think you will be approved for 3.02%?
The interest rates are so low that you would have to have near-perfect credit to be approved for one of Hawkeye Associates’ debt consolidation loans.
Crixeo, the personal finance review site, completed a review of Hawkeye Associates, Dale Lending, Credit 9, Yellowhammer Associates, Simple Path Financial, Big Apple Associates, Crown Street Funding, Cornhusker Advisors, Tripoint Lending, Badger Advisors, Rockville Advisors, Snowbird Partners, Gulf Street Advisors, Brice Capital, Johnson Funding, Taft Financial, Polo Funding, Jackson Funding, Dune Ventures, Braidwood Capital, Tiffany Funding, Nickel Advisors, Coral Funding, Neon Funding, Polk Partners, Ladder Advisors (also known as Carina Advisors, Corey Advisors, Pennon Partners, Jayhawk Advisors, Clay Advisors, Colony Associates, and Pine Advisors, etc.).
Many people think that every credit check hurts their credit score, although this is not true. It is crucial to understand the differences between soft credit checks and hard credit checks. Having this knowledge can help safeguard your credit rating and enhance your financial health.
Difference Between A Soft Credit Check and A Hard Credit Check?
Soft credit inquiries are made to credit reporting bureaus such as Experian, Transunion, or Equifax. These inquests do not affect a person’s credit score because the agency does not reveal the request for the inquiry to anyone except for you. On the flip side, hard inquiries appear in a person’s credit report and are viewed by others. This means that these requests have the potential to harm your credit rating.
Let’s look at a few instances of soft and hard inquiries.
Examples of Soft Credit Inquiries
Some examples of soft credit checks are:
Credit Card Companies Pre-Screening Credit
Credit agencies cannot reveal inquiry requests made by credit card companies to anyone other than those involved under the Fair Credit Reporting Act (FCRA). Since the information remains between the credit card company and the individual it’s screening, your credit scores are not affected at all.
Credit Checking Services Such as Credit Karma or Privacy Guard
You can keep an eye on your credit and finances using Credit Karma or Privacy guard services. Whenever using such services or websites, it is important to research and check their policies on the safe side.
Checking Credit Rating with Mortgage Lenders to Know What Type of Loans You Qualify For
When going through the process of applying for a mortgage, lenders will check and assess your credit scores. Though, in the pre-qualification phase, these checks are not legally needed. So, whenever a credit check takes place in such a scenario, ask the person responsible for a soft check or a hard check.
Credit Checks by Employers
Employers usually perform credit checks for incoming or current employees, though this does not impact credit scores.
Examples of Hard Credit Inquiries
Some examples of hard credit checks are:
Applying for A Credit Or Loan
Whenever you submit a request for a home mortgage, auto loan, or a new credit card, a hard credit check is performed, which appears in your credit records. These are the primary reasons for a hard credit inquiry.
Getting New Cellphone Contract
Whenever you sign a new cell phone plan or contract.
Installing Residential Utilities
If you have a new residence and need to install utilities such as electricity, water, and gas, you must go through credit checks.
Applying for Student Loans
Student loans, among other types of loans, need hard credit inquiries.
Applying for Rent Agreement
Lenders will perform hard credit checks when you apply for renting a property such as an apartment or home.
Effect of Credit Inquiries On Credit Score
A vital difference between soft and hard credit checks is that the latter reduces credit scores for a little time, although the reduction is only for a minimal amount of points. In contrast to soft credit checks, hard checks will be revealed to any future parties inquiring about your credits. This is because hard credit checks are a part of the credit report. Information related to hard checks is retained on your report for around two years.
Nonetheless, not every hard check harms your credit rating. For instance, FICO, which is a large credit rating organization, treats applications for mortgage, auto loans, and student loans made within one and half months to be a single credit inquiry. This bunching of inquiries signals that a consumer is trying to source credit for big expenses, so such inquiries do not affect your credit adversely.
In some cases, a hard credit check is unavoidable, such as applying for a mortgage or installing a residential utility. However, you can other times avoid hard checks if you wish to keep your credit score unharmed. Don’t apply for loans that you can do without. Try to save money instead. Also, when opening a new bank account or obtaining a new contact for your cellphone, ask the businesses involved if a hard credit inquiry will be needed. This will help you decide if it is worth taking a hit on your credit score or not.
Promotional deals such as discounts on in-store credit cards may seem to be harmless at first, though they will affect your ability to get loans in the future by reducing your credit score points. Therefore, the next time your clerk comes up to you asking for a store credit card, weigh in the costs and benefits before responding.
Advantages of Monitoring Credit Yourself
Checking credit scores by yourself with the help of a credit agency or credit monitoring services will be addressed as a soft credit check. This inquiry type would not negatively impact your credit score and can even help pinpoint any shoddy activity before it becomes too severe.
It is better to take your credit reports from credit agencies since they provide all the information relevant to your file. You can get one free credit report per year from the three big credit reporting agencies due to the Fair Credit Reporting Act.
Checking your credit reports frequently is a good idea despite having applied for a new loan, mortgage, etc., or not. This is because paying attention to your credit inquiries allows you to detect any inquiries you did not launch, which could be a signal of identity theft or fraud. You can only ensure good credit by spending wisely and tracking the movements of your credit score. Try to keep an eye on your credit score – without negatively affecting it – to enable yourself to have a better financial future.