Should I try removing credit inquiries from my credit report?
You may have found some inquiries on your credit report, and are wondering if there is any cause for concern.
The first thing you should understand is where these inquiries came from. Inquiries happen when companies run your credit report for various reasons.
It could be the company you have applied to work
for, or financial intuitions that have an interest in knowing more about
your credit history. They can even be placed in your file if you have
responded to an offer for credit through the mail. Not all these are harmful though.
Removing credit inquiries automatically takes place periodically, but if there are frequent inquiries of a certain kind, then there could be a problem. These could appear like a pile of question blocks stacking up.
Some feel that it is important to remove them from their credit
report. The fact is that it would be better to wait
to initiate removing credit inquiries. Why do I say that?
A hard inquiry is where a lender is checking your credit because you want to borrow money. Examples of this is when you apply for a loan to buy a car, house, or even furniture. The creditor is taking a close look at your ability to pay the loan.
A soft inquiry is where a business may be looking at sending you an offer. Examples of these are credit card companies. They only want to mail offers to those who fit their profile. Another example is when you check your own credit. These type of inquiries don't affect your score.
But if you have too many hard inquiries in a short period of time, that could have an impact. Even though it may not be a big impact, still if your score is already low, that's a problem.
Not all inquiries actually affect you. So you need to be sure what type they are. Here are some reasons you may wish to ask them to be removed:
If you do not wish to wait for these inquiries to be routinely removed from your record, you can begin appropriate steps for removing credit inquiries. You can do this by sending a credit repair letter to each creditor listed on your report as a hard inquiry.
It is up to them whether or not they remove the hard inquiry from your record. If you would like a sample of such letter, go to my credit repair letters section of this website.
I had a client who had given permission to a used car dealership to check his credit. This caused his application for a mortgage to be denied.
Unfortunately, the used car dealership ran inquiries every week for several months to see if his credit had improved. This appeared as several hard inquiries on his credit report.
He hadn't given the used car dealership written permission for these several inquiries! Yet the used car dealership took that one signature and used it several times.
This disqualified him for a mortgage because he had too many hard inquiries. It had lowered his credit score dramatically.
So just be aware of how these can affect you. When you want to buy a home, don't jump the gun and go out and apply for a car, furniture, appliances.....you know what I mean. Get the home loan first.
Do you have additional credit quesions? Ask them in this awesome forum. So go ahead....pick my brain!
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