Credit Inquiry Letters, Notes, and Flags.

Occasionally when shopping around, multiple hard inquiries will appear on your credit report, affecting your credit score. Because of this, a potential lender may ask for a credit inquiry letter to explain what these hard inquiries were for, determining if you are a high-risk customer or not.

Typically these credit inquiry letters contain basic information such as which company checked your credit, when, and why. How well you are able to explain hard inquiries when writing a credit inquiry letter can determine a yes or a no, so in most cases, contacting the professionals at Inquiry Busters is in your best interest, but if choose to write you own you should include:

  • Name, current date, salutation, and subject
  • A brief overview of the inquiries in question
  • A list of each credit inquiry with the following:
    • Company name
    • Date of credit inquiry
    • Reason for credit inquiry
    • Was credit granted, yes or no?
  • A brief overview of supporting documents (if attached)
  • Name, phone number, email, and signature

Credit Bureau Notes

Alternatively, for individuals who don’t want to waste time to create a new credit inquiry letter each time you are looking for new credit, you can contact each credit reporting agency directly (The TransUnion, Equifax, and Experian) and request that they add a brief note to explain your situation to future lenders. This note should be less than 125 characters and read something like this: Jul 2014 to Aug 2014 multiple inquiries for a new vehicle, financed via 123 Car Loans.

After adding a note, any company that has actually read your report (and any reputable company should) will already know everything they need to know about your inquiries and credit score.

Fraud Flags

If are the victim of fraud and have already contacted the police, you can also add a fraud flag to your bureau to explain a bad credit score, collection items, or debts, and also to ensure that each time your credit is checked, the agency responsible is required by law to call you and verify.

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