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Disputing and Erasing Credit Inquiries:
by rebuildcreditscores.com
by rebuildcreditscores.com
The Hard Inquiry
When you fill out a credit application you authorize a bank, credit card
company or lender to view your credit history. This is known as a hard
inquiry and is done with “permissible purpose”.
Collection agencies may also pull a hard inquiry. Hard inquiries can take
points from your credit score. Many hard inquiries are also viewed
negatively by creditors and can be used as a reason to deny you credit.
The Soft Inquiry
A soft inquiry may not have been authorized by you. Your existing
creditors pull your credit reports to see how you are paying your other
bills and if any problems exist. They also do this as an excuse to invoke
“universal default” which can raise your current interest rate. Lenders
and credit card issuers also pull soft inquiries in order to screen you for
pre-approved offers. Soft inquiries do not take points away from your
credit score and are supposedly only viewable by you.
Pre-Approved Offers
When you receive a “pre-approved” offer in the mail, this means a bank
or credit card company has screened your credit and made a soft
inquiry. However, even when you receive a pre-approved credit offer in
the mail and you respond, a hard inquiry will most likely be pulled. This
means a hard inquiry will be added to your credit files and points will be
deducted from your credit score.
Why hard credit inquiries are bad
Credit grantors view too many credit inquiries as a sign of financial
trouble. The creditor has no way of knowing if you were approved for all
of the credit you applied for. Your credit inquiry does not indicate
approval or denial. They may assume you received the credit lines that
are showing as inquiries. Additionally hard credit inquiries take away
points from your credit score. Too many hard inquiries could result in a
denial of credit and bring down your credit score.
Mortgage and Auto loan inquiries
It is wise to shop around for the best interest rates when making a major
purchase such as a house or automobile. But shopping around for the
best rates may result in many inquiries during the shopping phase. The
credit reporting agencies supposedly have a buffer to prevent your credit
scores from taking a dive for too many inquiries when shopping around
for interest rates. All inquiries related to a mortgage loan or auto loan
done within a 14-day period are counted as one inquiry. The issue with
this is that the inquiries are supposed to indicate a mortgage or auto
inquiry on your credit report but there is no way of knowing if a lender or
bank has noted that inquiry correctly. Just be informed and ask your
lender before applying, especially at a car dealership. They may run your
credit through many lenders in order to get you approved.
How long do inquiries remain on your credit report
All credit inquiries remain on your credit report for two years and should
drop off automatically when the two years as expired.
Erasing credit inquiries
The credit reporting agencies will tell you that credit inquiries are just a
statement of fact and cannot be removed. This is not true. FRCA Rules
state that any information can be disputed and must be investigated. You
need not worry about soft inquiries as they do not count against your
credit score. Credit inquiries made without “permissible purpose” should
be disputed. The FCRA states you can sue for damages in the amount of
$1,000 for each instance a company pulled your credit report without
your permission.
Credit inquiries made without your permission may indicate fraud, in
which case the credit reporting agencies may put a fraud alert in your
files. A fraud alert will make it difficult for anyone, including you, to access
your credit report without your permission.
Permissible purpose would be if you applied for credit, one of your
current creditors may pull a hard inquiry or a collection agency holding a
debt may pull your credit report.
Is disputing credit inquiries worth the time
If the credit inquiry is really a mystery to you and you don’t recall
requesting credit then you really should initiate an investigation with the
credit reporting agencies. It could be a matter of fraud and you want to
handle that immediately. A fraud alert may be put in your files in order to
protect you. Fraud alerts will also keep you from applying for credit
easily. Most credit granters disregard credit inquiries after 6 months.
While they do remain on your credit reports for 2 years, they are not
heavily weighed in decisions to grant credit. Your time may be better
spent disputing other types of information that would significantly raise
your credit score if deleted. See Disputes.
When you fill out a credit application you authorize a bank, credit card
company or lender to view your credit history. This is known as a hard
inquiry and is done with “permissible purpose”.
Collection agencies may also pull a hard inquiry. Hard inquiries can take
points from your credit score. Many hard inquiries are also viewed
negatively by creditors and can be used as a reason to deny you credit.
The Soft Inquiry
A soft inquiry may not have been authorized by you. Your existing
creditors pull your credit reports to see how you are paying your other
bills and if any problems exist. They also do this as an excuse to invoke
“universal default” which can raise your current interest rate. Lenders
and credit card issuers also pull soft inquiries in order to screen you for
pre-approved offers. Soft inquiries do not take points away from your
credit score and are supposedly only viewable by you.
Pre-Approved Offers
When you receive a “pre-approved” offer in the mail, this means a bank
or credit card company has screened your credit and made a soft
inquiry. However, even when you receive a pre-approved credit offer in
the mail and you respond, a hard inquiry will most likely be pulled. This
means a hard inquiry will be added to your credit files and points will be
deducted from your credit score.
Why hard credit inquiries are bad
Credit grantors view too many credit inquiries as a sign of financial
trouble. The creditor has no way of knowing if you were approved for all
of the credit you applied for. Your credit inquiry does not indicate
approval or denial. They may assume you received the credit lines that
are showing as inquiries. Additionally hard credit inquiries take away
points from your credit score. Too many hard inquiries could result in a
denial of credit and bring down your credit score.
Mortgage and Auto loan inquiries
It is wise to shop around for the best interest rates when making a major
purchase such as a house or automobile. But shopping around for the
best rates may result in many inquiries during the shopping phase. The
credit reporting agencies supposedly have a buffer to prevent your credit
scores from taking a dive for too many inquiries when shopping around
for interest rates. All inquiries related to a mortgage loan or auto loan
done within a 14-day period are counted as one inquiry. The issue with
this is that the inquiries are supposed to indicate a mortgage or auto
inquiry on your credit report but there is no way of knowing if a lender or
bank has noted that inquiry correctly. Just be informed and ask your
lender before applying, especially at a car dealership. They may run your
credit through many lenders in order to get you approved.
How long do inquiries remain on your credit report
All credit inquiries remain on your credit report for two years and should
drop off automatically when the two years as expired.
Erasing credit inquiries
The credit reporting agencies will tell you that credit inquiries are just a
statement of fact and cannot be removed. This is not true. FRCA Rules
state that any information can be disputed and must be investigated. You
need not worry about soft inquiries as they do not count against your
credit score. Credit inquiries made without “permissible purpose” should
be disputed. The FCRA states you can sue for damages in the amount of
$1,000 for each instance a company pulled your credit report without
your permission.
Credit inquiries made without your permission may indicate fraud, in
which case the credit reporting agencies may put a fraud alert in your
files. A fraud alert will make it difficult for anyone, including you, to access
your credit report without your permission.
Permissible purpose would be if you applied for credit, one of your
current creditors may pull a hard inquiry or a collection agency holding a
debt may pull your credit report.
Is disputing credit inquiries worth the time
If the credit inquiry is really a mystery to you and you don’t recall
requesting credit then you really should initiate an investigation with the
credit reporting agencies. It could be a matter of fraud and you want to
handle that immediately. A fraud alert may be put in your files in order to
protect you. Fraud alerts will also keep you from applying for credit
easily. Most credit granters disregard credit inquiries after 6 months.
While they do remain on your credit reports for 2 years, they are not
heavily weighed in decisions to grant credit. Your time may be better
spent disputing other types of information that would significantly raise
your credit score if deleted. See Disputes.
A credit inquiry is a request to view your credit report. There are two types of
credit inquiries: (1) Hard Inquiry and (2) Soft Inquiry. The major difference
between the two is that one affects your credit score and one does not.
credit inquiries: (1) Hard Inquiry and (2) Soft Inquiry. The major difference
between the two is that one affects your credit score and one does not.
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