Question
Credit inquiries are checks on your credit report. They can be either soft (not affecting your score) or hard (potentially lowering your score). Label each action as either a soft or hard inquiry. Soft inquiry Hard inquiry applying for a mortgage applying for a car loan pre-approved credit offers in the mail
Answer
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Emily
Professional · Tutor for 6 years
Answer
### Applying for a mortgage: Hard inquiry### Applying for a car loan: Hard inquiry### Pre-approved credit offers in the mail: Soft inquiry
Explanation
## Step1: Define the types of inquiries### Credit inquiries can be categorized into two types: soft inquiries and hard inquiries. Soft inquiries do not affect your credit score, while hard inquiries can potentially lower your score.## Step2: Classify each action### We need to determine whether each action listed is a soft or hard inquiry based on its impact on the credit score.### - Applying for a mortgage: This is a hard inquiry because it involves a lender checking your credit report to make a lending decision.### - Applying for a car loan: This is a hard inquiry because it involves a lender checking your credit report to make a lending decision.### - Pre-approved credit offers in the mail: This is a soft inquiry because it does not involve a lender making a lending decision based on your credit report.