Which type of credit inquiry does not affect your credit score?

• A. Hard inquiry
• B. Soft inquiry
• C. Collection inquiry
• D. Lender inquiry

Answer: (B)

Verified step by step guidance

1. Understand the concept of credit inquiries: Credit inquiries occur when a financial institution or entity checks your credit report. There are two main types: hard inquiries and soft inquiries.
2. Define hard inquiries: A hard inquiry happens when a lender checks your credit report to make a lending decision, such as approving a loan or credit card. Hard inquiries can affect your credit score.
3. Define soft inquiries: A soft inquiry occurs when your credit report is checked for non-lending purposes, such as pre-approval offers, background checks, or when you check your own credit score. Soft inquiries do not affect your credit score.
4. Differentiate between the types of inquiries listed in the problem: Hard inquiry affects your credit score, while soft inquiry does not. Collection inquiry and lender inquiry are not standard terms used to describe credit inquiries.
5. Conclude that the correct answer is 'Soft inquiry,' as it does not impact your credit score, unlike hard inquiries.