When applying for any credit card, it is important to understand the potential impact on your credit score. One of the key factors to consider is whether the application will result in a hard inquiry or a soft inquiry. This distinction can have significant implications for your credit health, especially if you are managing multiple credit applications or aiming to maintain a high credit score. The Truist Business Credit Card, like many other business credit cards, requires careful consideration in this regard.
Is the Truist Business Credit Card a hard inquiry? Yes, applying for the Truist Business Credit Card typically results in a hard inquiry on your credit report. A hard inquiry occurs when a lender or financial institution checks your credit report as part of their decision-making process. This type of inquiry can temporarily lower your credit score by a few points and is visible to other lenders who may review your credit report in the future.
Understanding Hard Inquiries
Hard inquiries are a standard part of the credit application process. They provide lenders with a detailed look at your credit history, allowing them to assess your creditworthiness. While a single hard inquiry may only cause a minor dip in your credit score, multiple hard inquiries within a short period can have a more pronounced effect. This is because they can signal to lenders that you are actively seeking credit, which may be perceived as a higher risk.
It is important to note that hard inquiries remain on your credit report for up to two years, but their impact on your credit score diminishes over time. Generally, the effect of a hard inquiry is most significant in the first few months following the inquiry.
Soft Inquiries and Their Impact
In contrast to hard inquiries, soft inquiries occur when your credit report is checked for purposes other than a credit application. Examples of soft inquiries include pre-approval checks by lenders, credit monitoring by yourself, or background checks by employers. Soft inquiries do not affect your credit score and are not visible to other lenders.
When considering applying for the Truist Business Credit Card, it is crucial to weigh the potential benefits of the card against the temporary impact of a hard inquiry. If maintaining a high credit score is a priority for you, it may be wise to limit the number of hard inquiries on your credit report.
In summary, applying for the Truist Business Credit Card will result in a hard inquiry on your credit report. Understanding the implications of hard and soft inquiries can help you make informed decisions about your credit applications and overall financial health.