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If you are reading this blog it’s probable that you need to get credit right now. Well, you are not alone. Credit is a frequent essential for people at any age. Financing through credit is a common way to get funding for both individuals and businesses. You might require funds to overcome a difficult time or grow toward a new stage in life. Maybe you are planning to buy a new house or invest in a small business but aren’t getting approval from lenders or the credit terms are not favorable. Perhaps someone told you that the solution is to remove inquiries from your credit report and now you are wondering what that is, and how to do it.
Let`s start at the beginning. Many people find it difficult to get a loan or a new credit card if their existing credit scores are low. That is why the push for a high credit score is so important nowadays. If this is your present circumstance, maybe you need to know how to remove credit inquiries.
1. Why remove inquiries from your credit report?
Credit inquiries have a negative impact on your credit record. They might reflect that you are desperate for funds, and that can be a signal of significant financial troubles. Or the creditor could think that you opened several credit lines that would affect your ability to pay them back. That is why you might decide to remove inquiries from your credit report. If your score is not satisfactory from the lender`s point of view, that company will not approve your application. In another scenario, the lender could approve the credit but would charge you with a high-interest rate or demand a large down payment to compensate for the perceived risk. To the lending institution, you are a stranger and your credit history is the most valuable information it has about you. In this case, your past counts for your future.
A credit inquiry appears when a company checks your credit report. The action is recorded by the main credit agencies, such as Equifax and Experian. Each inquiry stays for up to two years in your report. The inquiries are not the most relevant factor impacting your credit score, but they do have an impact. Remember that your credit analysis commonly uses score ranges to define the creditworthiness. Depending on your particular situation, 5 or 10 points higher could make a difference between two score ranges. For example, say you have a credit score that falls in the “poor” range but with 10 points more the score jumps to the “fair” range. If this is your case, it will benefit you to know how to remove inquiries from your credit report.
But it is important to understand that your credit score is only affected by hard inquiries. The so-called soft inquiries do not affect your score but they do appear in the report. A hard inquiry is triggered by you. Maybe you applied for a credit card or a new insurance policy. The company needs to search for information about you before approving or declining your application.
A soft inquiry is not triggered by you but by someone else. Perhaps a creditor wants to offer a credit card or a loan to you and therefore checks your report without your permission. Or maybe it is a current creditor that just wants to examine your situation. Also, checking your own credit report is a soft inquiry so do not worry about that.
The most important inquiries are those created over the past 12 months. But if the creditor wants, it can see the inquiries for the past two years. Because those two years are a moving interval, the inquiries tend to have less impact over time.
2. How to remove inquiries from your credit report
If you find that your credit score is poor, a credit report inquiry removal can help. First of all, you should obtain a copy of your credit report. Then you must check all inquiries to identify if some of them have been recorded without your authorization. If there is some unauthorized item, you could try to dispute it. This is done through formal written communications with the creditors that created those inquiries. You ask them to delete them from your report and, if they agree, the inquiries are eliminated and your report improves.
3. How to avoid having to remove inquiries from your credit report in the future?
At this point, you might be wondering how you can ask for credit without hurting your credit score. Well, it is not so difficult. You should lay out your goals and identify your future needs. After that, you can plan the proper time frame to ask for credit and compare among different lenders. If you are trying to get one type of loan, multiple inquiries related to that loan count as just one if they are created within 30-40 days. The recommendation is therefore not to apply for too many different loans within that short time frame.
Another proposal to escape from credit report inquiry removal in the future is to freeze your credit report. If your report is frozen, no creditor can access your credit information and no inquiry is recorded. You can solicit this action if you think that you will not need to ask for loans soon.
If you do not feel comfortable trying to remove inquiries from your credit report on your own, we suggest looking for an expert. A company experienced in credit report inquiry removal can help you with the process of cleaning your report and improving your credit score. It will follow proven steps and will deal with tedious procedures in record time.
This article was written for Grand Teton Professionals for InquiryBusters. If you need funds but your credit score is not favorable, contact us to remove credit inquiries and get funds fast. Please contact us at support@inquirybusters.com. For Media Relations, please contact Misty.Burrell@GrandTetonProfessionals.com.