Credit Inquiry Law and Legal Definition

Credit inquiry is the investigation of a person’s or a business entity’s credit. There are two types of credit inquiries. Hard credit inquiries are credit inquiries that are conducted by financial agencies with the credit reporting agencies when a person or a firm has applied for credit. Soft credit inquiries happen when credit information is used by existing lenders for account reviews, inquiries for tenant screening, and such other needs. Hard credit inquiries can impact one’s credit rating.