YFSCREDIT.COM – Day 13 – Inquiries & Protecting Your Credit

Hey Wealth Builder! Welcome back! Whew if you implemented everything so far you’re well on your way to having the credit that you want!

Now let’s talk about protecting our precious credit.

It would be a shame for you to work so hard and improve your credit by hundreds of points and it’s all for nothing because you made a mistake by not protecting yourself.

Benjamin Franklin once said:

An ounce of prevention is worth a pound of cure.

I believe his quote is doubly true for credit and finances. The first thing you’re going to want to have is a quality permanent credit monitoring.

I’m going to give you a link to monitoring that I use, and I even got them to partner with me to offer you a deal on their service with a few more perks.

However, the reason you want credit monitoring is because if someone steals your identity and opens up accounts, you want to be alerted immediately.

Secondly, a good credit monitoring will offer you identity theft protection, assistance, and other perks.

Third, not all credit monitoring is created equal! What I mean by that statement is that some credit monitoring doesn’t show you all the data you would need to effectively dispute an account.

For example, when I reviewed credit monitoring from the big 3 (Equifax, Experian, TransUnion, and even some of the “free” options) I noticed that they purposely left out fields that would assist you with repairing your own credit!

It’s like they are setting you up to lose!

You won’t have these problems with the permanent credit monitoring solution below.

With monitoring in place and you getting daily alerts about your credit profile now you have to implement a few of my rules to protect your credit.

Tell your friends and family about your money goals
Do not cosign or co-borrow for anything
Never lend money you can’t afford to lose
Review your credit reports every month from your permanent credit monitoring
Opt out of credit card solicitations via optoutprescreen.com
Do not carry your social security number in your wallet or purse


Lock any unused credits card in a safe
Review your money goals monthly and reward yourself


Every 6 months call your creditors to ensure that your automatic bill payment is still active
Use an encrypted password manager to store your bank password

If you do those ten things, you will be “A” ok! You’ll efficiently and effectively cover all basis for your protection needs.

Now let’s talk about inquiries.

I have no clue why people make such a big deal out of inquiries they are the last thing that a lender will care about and therefore shouldn’t be focused on that much if you’re trying to improve your credit for a car, home or business.

There are two types of inquiries, and they both will be on your credit report.

One type of inquiry is SOFT, and the other kind is HARD.

Soft Inquiries are also known as “soft pulls“, and this occurs when a person or company reviews your credit as part of a background check.

For example, those pre-qualified or “pre-approved” credit offers you get in the mail are because of a “soft pull” of your credit was done by a creditor to see if you meet their specific criteria to do business.

FYI… The credit bureaus sell your data to banks so they can do this. It’s their business model. You’re not special because you get pre-approval offers. Your data was sold to the bank and you “may” meet the banks’ criteria as someone they feel they could make money off of 🙂

Another soft inquiry is when your job looks into your credit to see if you qualify for the job.

The good news is… Soft inquiries will have no impact on your credit score! Why? Well, they aren’t connected to you applying for new credit. You’re not actively seeking a loan or approval.

Hard Inquiries, also known as, “hard pulls” occur when a lender, credit issuer or financial institution checks your credit as a basis for a lending decision.

When you apply for a mortgage, car, student loan, credit card it’s all a hard pull!

Now, here is the thing…

Your credit report will list every single last inquiry for information purposes, but not all hard inquiries negatively impact your credit.

Let me explain…

When you apply for an auto loan, mortgage, and or student loan, you may receive heck, 20+ inquiries from rate shopping, but even though all the inquiries are listed it only impacts you once if done within a 26 day period (some FICO models allow 45 days).

After one year the hard inquiry has no impact on your credit score, and after two years it falls off completely (as if it never happened)
Today action item is for you to stop stressing over inquiries on your credit report and to tell your friends and family how much you’ve learned and that unfortunately, you will never cosign for them!

Don’t forget to check in with your accountability partner and make sure they tell their friends and family the same thing.