If you're considering applying for a loan or credit card, you may be wondering how much damage a hard credit check (also known as a hard inquiry) can do to your credit score. A hard credit check is a type of credit check that is conducted when you apply for a loan or credit card. It is called a "hard" credit check because it can have a negative impact on your credit score, as opposed to a "soft" credit check, which is a less impactful type of credit check that is often used for things like pre-approval offers or credit card balance transfer offers.
So, how much damage can a hard credit check do to your credit score? The answer is that it depends on a number of factors, including your credit history and the specific credit scoring model being used. Here are a few things to consider when evaluating the impact of a hard credit check:
Credit history: If you have a strong credit history with a good credit score, a hard credit check is likely to have a smaller impact on your credit score. On the other hand, if you have a weaker credit history or a lower credit score, a hard credit check is likely to have a greater impact.
Credit scoring model: Different credit scoring models may place different weight on hard credit checks. For example, some credit scoring models may treat hard credit checks as a minor factor in determining your credit score, while others may place more emphasis on them.
Number of hard credit checks: The more hard credit checks you have on your credit report, the greater the impact they are likely to have on your credit score. It's important to limit the number of hard credit checks you have, as each one can potentially have a negative impact on your credit score.
Overall, the impact of a hard credit check on your credit score will depend on a number of factors, including your credit history, the credit scoring model being used, and the number of hard credit checks you have on your credit report. To minimize the impact of hard credit checks on your credit score, it's important to be mindful of the number of hard credit checks you have and to only apply
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