Welcome to We Fix Credit! Your journey towards a clean credit file starts here. We specialise in providing exceptional credit repair and credit fix solutions for Australians looking to fix their bad credit reports. If you’re struggling with your credit score or have questions about hard inquiries and their impact, our experienced credit repair team is here to help. Call us at 1300 003 655 for a free, no-obligation discussion. Our qualified and licensed credit repair specialists will guide you through every step with no telemarketers or sales staff—just genuine expertise and personalised advice.
What is a Hard Enquiry?
A hard Enquiry—also known as a hard pull—occurs when a lender or creditor reviews your credit report to assess your creditworthiness for a new loan, credit card, or other financial products. Unlike soft enquiries, which occur when you check your own credit or when companies perform credit report checks, hard enquiries are tied to actual credit applications and can affect your credit score.
Impact on Your Credit Score
Hard inquiries can cause a slight, temporary drop in your credit score, which can be impacted by multiple enquiries for that same type of application within a short period of time. The effect can vary depending on your overall credit health. For those with limited credit histories or fewer accounts, the impact might be more noticeable. Multiple hard enquiries within a short period can compound their effects. However, credit scoring models don’t understand that consumers often compare rates for mortgages, auto loans, or personal loans.
Hard vs. Soft Enquiries
Hard Enquiries are associated with credit applications and can impact your credit score. In contrast, soft enquiries—such as checks by commercial entities performing a Director’s access check or self-checks—do not affect your credit score and self-checks are not visible to lenders checking your credit file. Understanding this distinction is crucial for maintaining a healthy credit profile.
How to Manage Hard Enquiries
  • Be Selective with Credit Applications: Apply for new credit only when necessary. Frequent applications can result in multiple hard inquiries, which may negatively impact your credit score.
  • Check Pre-Qualification Offers: Many lenders offer pre-qualification with a soft enquiry, allowing you to check your eligibility without affecting your score. Be sure to confirm this is the case at your application stage and if possible, get it in writing and read the fine print or terms and conditions of the application before submitting.
  • Limit Rate Shopping: When comparing rates for major loans, do so without authorising a full hard enquiry credit check, to ensure multiple enquiries don’t heavily impact your credit score.
  • Monitor Your Credit Report: Regularly review your credit report to ensure no unauthorised hard enquiries are listed. Dispute any discrepancies promptly. We Fix Credit can assist you with this process efficiently.
The Bottom Line
Hard Enquiries are an unavoidable part of applying for credit, but their impact can affect you in the short term as they are listed for a period of 5 years. By managing your credit applications wisely and understanding how hard enquiries work, you can minimise their effect and maintain a strong credit profile. Remember, unsecured credit types to a minimum and making timely payments are more important to your credit score in the long term.
At We Fix Credit, we’re here to help you achieve and maintain a clean credit file. Contact us today at 1300 003 655 for expert advice from our dedicated credit repair team. No sales pitches—just qualified, licensed professionals ready to assist with your credit repair needs. Let’s work together to improve your credit score and achieve your financial goals!