Each time you apply for credit, whether for a car, credit card, or whatever, an inquiry is left on your file. This tells potential creditors who and where you have been applying for credit with. Too many inquires within a certain period of time is bad for your score. It becomes even worse if you have many inquiries, but no accompanying open accounts for them. A creditor may think that there was good reason why you were turned down by other creditors and deny you based upon that assumption.
You are granted exception when applying for a car loan or home mortgage. As long as these inquiries come the same type of lender within 30-45 days, they are counted as one inquiry. The time span has changed over the years. I read from a credit bureau representative that the time span was changed because people began taking longer and researching more when making important purchases.
Of course, inquiries can be challenged just like any other account. They usually stay on your record about 24 months. Credit inquires done by yourself are not shown to potential creditors, therefore won’t affect your score. Also soft inquires, done by other companies won’t affect your score either. The bureaus make money from selling the information they’ve gathered on you and everyone else. A company my buy a list created based on specific criteria. Age, geographic, credit score range are just some of the factors that may be used to compile a list.
One method that may work best if the dispute method fails is to simply ask the creditor to remove it from their records. When the bureau’s computer comes to get the monthly information, the inquire won’t show anymore. First, make sure you have been paying on time. Second, it helps if you have a valid good reason, such as purchasing a house.
By: Christopher Wright
Posts Tagged ‘Credit Card’
Using A Credit Repair Consultant
March 1st, 2010
Many people find themselves in serious debt sometime during their lifetime and are unsure how to begin repairing their credit score. If you’ve found yourself under a pile of debt because of your credit card use, you may want to consider hiring a credit repair consultant to negotiate with your lenders to manage your payments and get you on the road to a better credit score. Meeting with consultants can show you your options when it comes to repairing your financial situation. While there are definite benefits to this, you must be careful and ensure you are dealing with a legitimate and reputable organization before you enter into any agreement.
First and foremost, you want to check out your credit reports to see where your financial situation lies. If you have a lot of debt, with payments that are out of your control it may be time to speak with a credit repair consultant who can help get your life back on track. Once your consultant speaks with your lenders and gets your financial situation under new management, you will ideally be able to make smaller payments, possibly free of the accumulated interest and finance charges. Consultants can also help you in creating a budget you and your family can stick with and still manage to get by.
The innovative service a credit repair consultant can offer consumers with poor financial standing can go a long way in repairing your credit score and lead you to a debt-free life. In addition to working directly with lenders to get rid of interest charges, consultants can also consolidate your debt into one easy to manage payment, with lower interest rates than you’d be paying on each individual debt. If you do decide to hire a consultant, it’s important that you deal with a well known organization with many years in the field. Soon enough, you’ll find managing your credit debt can actually be done.
By: Dean Iggo
