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Credit scores are provided by credit reporting agencies such as Equifax, Experian, and Illion (formally knows as Dun & Bradstreet). These agencies collect and maintain information on credit histories of individuals and use this information to generate credit scores, which are numerical representations of a person’s creditworthiness.
A credit file begins when you apply for credit or enter into a credit contract for the first time. Credit providers report your credit history to credit reporting agencies, which use the information to create your credit file. Your credit file includes details of your credit accounts, missed or late payments, and employment history, among other things. It’s important to maintain a good credit history by making payments on time, limiting credit applications, and checking your credit report for errors or fraudulent activity. Your credit file remains active as long as you have active credit accounts or applications, and for a period of 2 years after they are closed.
A soft inquiry and a hard inquiry are two types of credit checks that can be performed on your credit file.
A soft inquiry, also known as a “preliminary credit assessment,” is a credit check that is performed by a credit provider or lender for the purpose of verifying your identity or conducting a preliminary assessment of your creditworthiness. Soft inquiries do not impact your credit score or show up on your credit report, and they can be performed without your consent.
On the other hand, a hard inquiry, also known as a “credit application,” is a credit check that is performed when you apply for credit, such as a credit card, personal loan or mortgage. Hard inquiries can impact your credit score and remain on your credit report for up to two years, regardless of whether or not you are approved for the credit. It’s important to note that too many hard inquiries in a short period of time can be seen as a sign of financial stress and can negatively impact your credit score.
To request a copy of your credit file, you will typically need to provide the following information:
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