If you are someone that is looking to buy a home, you may be looking at a lot of different options that you can consider. Have you ever really looked at title loans mississippi because you’re concerned that your credit score isn’t good enough to get a standard loan, or because you’re worried about pulls?
Most of us think of credit checks as this amorphous thing where the person or entity checking our credit puts in our name and other private information and gets this number along with everything we’ve ever done wrong financially. It sounds so foreboding and basically, really not very interesting. But, it’s a little known fact that there are actually two kinds of credit checks: Hard pulls and soft pulls.
Soft pull- This is your basic inquiry of your credit score. In short, it’s meant for informational purposes only. The yearly free credit inquiry that the US government provides for the individual consumer? A soft pull. This is you getting information about your own credit so you can know what to do to improve it or to know what you qualify more in general. Also, if a financial institution only is looking to verify what you’ve already said about your credit, they can do a soft pull.
Hard pull- These are the big, complicated reports that get done when you apply for a loan or mortgage. Well, or a myriad of other things. AT&T and Verizon do hard pulls for new phone plans. Many banks do them for checking and savings accounts. The bad thing about this is that too many hard pulls can affect your credit score.
Taking the time to understand pulls can help you to get a better look at everything that you want to do in order to get a loan or credit card.