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Disputing and Erasing Credit
Inquiries
by Lisa Phillips
Inquiries
by Lisa Phillips
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.
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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.
Page: 1 2 Next
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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.
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”.
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.
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”.
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