Understand how credit enquiries work

Cape Town - On a credit report credit enquiries list all parties who look at your credit information.

Credit enquiries are either "hard enquiries", as when a business views your credit report in connection with an application for credit, or "soft enquiries" when your credit is checked for most other reasons, including inquiries made by lenders for promotional purposes.
 
When you submit a credit card application, a hard credit enquiry appears on your credit report and may have an effect on your credit.

When you monitor your own credit report, or when someone checks it to make you a pre-approved credit offer, that creates a soft enquiry that is not seen by others and will not have any impact on your credit score.



Frequently asked questions:

Why are credit enquiries recorded?

Credit enquiries are recorded so that you can know who has obtained your credit report.

Too many credit enquiries may cause lenders to question whether you are seeking to obtain more credit than you can afford to repay.

Credit enquiries can also help consumers by alerting them to identity thieves using their information.
 
How long do credit enquiries remain on a report?

Most credit inquiries are required to remain for two years.
 
Who can make credit enquiries?

The National Credit Act stipulates that credit reports may be requested only for the specific purposes listed in the law.

Also on your credit report:
* Personal information;
* Your credit summary and score from the credit bureau;
* Defaults and public records;
* Account history or Payment profile.

(Source: TransUnion)

- Fin24

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