Zero in on whether a credit inquiry can affect your scores. Find a few suggestions for handling a hard inquiry on your report below.
This repair tip encourages you to limit the number of inquiries on your
report and what to do if there are. Why should you be concerned about this? This is important since
several credit inquiries can actually lower your financial score. That
score can make a difference in a higher or lower interest rate on your
mortgage. As well as affect several other things.
Everyone wants to know your creditworthiness, especially if you are applying for credit of some kind. You have to give permission for them to pull your financial report. Each time this report is pulled it is call an inquiry.
If you give too many institutions permission in a short period of time it can hurt you. How? Each "inquiry" serves as a "mark" on your report. Very many of these "marks" can pull your score down.
Thus use this credit inquiry tip to educate yourself and learn what to do if this happens.
Do not give yourself a credit headache by giving permission too many times. Otherwise you will need the credit repair ice pack to sooth the financial headache that formed!
You need to realize that when a dealership, loan officer, or any other type of financial company pulls your credit report for whatever reason it is an inquiry on your report and may affect that report's score.
Of course not all inquiries affect the score. There are soft inquiries that are reported but do not have any affect. And there are hard inquiries. These are the ones you need to watch.
Interestingly, these inquiries continue to be reported on your financial report for two years and are difficult to get removed. For example, I ran a report for an individual and found he had over 100 inquiries within a one-month period. Because of this, his credit score was so low he could not qualify for a mortgage.
This emphasizes the importance of not having to many hard inquiries. Unfortunately, with the internet, it is possible to create several hard inquiries in a short period of time.
Let me give you an example, you can apply for a mortgage online. Each time you apply and they want to check your credit, a hard inquiry is created on your report. What if you applied with ten different companies? Well, now you can see how several inquiries can appear on your report.
Then if you add applying for a car loan, furniture loan, a new credit card, etc. it doesn't take long for these to ad up.
Here's a tip for you, you can apply for a mortgage up to six times in a one month period time before it lowers your score. Good idea not to apply everywhere at once online. Guard the number of inquiries you allow on your report.
If you want to see your credit report and know your scores, you can pull your report yourself. If you find several hard inquiries on your report and you didn't authorize them, send a letter to the reporting agency involved. Ask them to remove them.
Remember you can pull your own financial report for free once a year from each of the three agencies.
In conclusion, use this credit inquiry tip to educate yourself on the consequences of too many credit inquiries. And act accordingly if you find too many of these hard inquiries on your report.
Proceed to credit repair tip #7 next.
Go to House Buyer Solutions Home Page.
Oct 08, 19 08:33 AM
Hello, I have a question regarding USDA vs. FHA home loans. I am in the process of getting a home in the next month but was told I wouldn't be approved
Aug 05, 19 10:44 PM
Hi Help please! I am a first time home buyer, buying a home with my fiance'. He is selling his home currently on the market for $125K with no contingencies.
Apr 15, 19 12:36 PM
When buying a home out of state, should we wait for employment contracts? Or can we use our current state's bank? Find the answers here.
Follow Us On Twitter