Hit Hard by Hard Inquiries – Get the Facts

If you’ve been hit hard by hard inquiries, you might not feel it right away – if fact, you probably won’t feel it until it’s time for you to borrow. Although multiple hard inquiries are an occasional fact of life, the reality of finance is this: lower score, higher rates.

Even if you find a company that advertises low premiums, you may no longer be eligible if you have a mile long history of credit inquiry with other companies first.

To help you, here are the real facts about hard inquiries:

  • Any more than 1-3 inquiries in 6 months can drastically lower your credit score
  • Any hard inquiries of a similar nature (such as vehicle loans or mortgages) processed in a 45 day period are protected, and count as a
  • single credit inquiry
  • Any hard inquiries that appear on your bureau can be removed if you did not give your express permission or, alternatively, if the company which processed your credit check cannot expressly prove that you gave permission
  • Any hard inquiries you make will remain active on your bureau for 2 years unless otherwise removed
  • Any credit inquiry you make in regards to your own credit will not reflect on your bureau because these inquiries are not considered hard inquiries

Unfortunately, if the company you are dealing with isn’t a reputable one you may find yourself out of both luck and options when it comes to improving credit, especially if you have been saddled with unwelcome or even illegal inquiries on your credit bureau.

That said if you plan on improving credit most if not all inquiries can be removed from your bureau if you’re willing to put in the time and effort to get them taken off or choose to deal with Inquiry Busters, who will take care of the hard work for you. In most cases, even bad or poorly organized companies will remove unwanted inquiries to avoid conflict, which will allow you to begin improving credit immediately, but only as long as you’re willing to go the distance when it comes to the follow-up.

3 Ways to Boost Your Credit Score Fast

New house? Denied. New car? Denied. New job? Denied.

It’s true, in today’s digital age your credit score is tantamount to your professional reputation, and while a good score comes with all the perks, a bad score comes with all the problems. If you have found yourself in a position where you can’t qualify for a credit, have multiple hard inquiries or your credit score is affecting your ability to live your life, it’s time to think about your options.

Although there is no quick-fix for a bad credit score, there are some things that can help give you a temporary boost right and away, and these include:

  1. Paying off any outstanding balances

Keeping your credit card balances low (about 30% of your total limit) can help boost your credit score in as little as 30days. 

  1. Paying off any outstanding collection items

While paying off collection debts won’t make bad credit good, it will prevent these debts from doing more damage or forcing a skip-trace inquiry. One step forward and two steps back never works, so step one of repairing your credit score means stopping it from getting any worse.

  1. Removing hard inquiries from your file

By contacting companies you have dealt with directly, or hiring Inquiry Busters to do it for you, you can potentially raise your credit score by a handful of points immediately simply by removing some of the hard inquiries currently damaging your score.

Remember, rebuilding your credit is a long-term investment

While these tips are not the only things you can do to help your credit score, things, like paying your bills when they’re due and establishing the history, take time, sometimes more time than you have. In these cases, it may make sense for you to get a co-signer if you need a product or service that requires credit right away because dual signature leads will appear on both bureaus as open trade and recent inquiry, improving both scores at the same time. Although risky, co-signing is a viable last-chance rebuilt option for individuals genuinely struggling to rebuild on their own.

TransUnion is Improving Credit Scores for Consumers

Openly challenged by Vantage Score’s new dynamic credit model, in 2015 TransUnion has rolled out its own commitment to improving credit: a better credit score for responsible players, guaranteed.

In fact, Trans Union’s new Credit Vision suite is improving credit options by introducing scoring based on an account history of 30 months and performance data for the last 82 months. Still scoring individuals between 300 and 850, improving credit score criteria means that over 26.5 million customers who were previously unscorable will now generate and be eligible for credit.

What is the difference between a static and dynamic report? 

Static credit reports are an unchanging picture of your credit, as most recently reported by your lenders and debt collectors. Unlike a dynamic report, a static report will not show your current payments, how much you paid, or did you pay early etc. it will simply report on if you did or did not pay on time which means you are not actually rewarded for doing more than the bare minimum.

Trans Union’s idea is actually a very smart one because improving credit should be easier for those who use credit responsibly, and do more with their credit than what they have to do. By using a new dynamic method, improving credit score is now about good practices not just minimum payments.

How do should you start improving credit with the new model? 

Pay your bills on time or early, pay your bills in full, pay more than the minimum payment on your credit card products, avoid hard inquiries or remove inquiries with the help of Inquiry Busters, and avoid maxing out your credit cards or spending beyond what you can comfortably pay back.

Will all lenders report data to the Credit Vision system? 

Unfortunately, no. While TransUnion is taking a step in the right direction, change takes time, and many businesses will continue reporting only the bare minimum which is: hard inquiries, payments made on time, minimum payments made, missed payments and defaulted loan amounts.

But, although some lenders will need time to catch up, it still pays to focus on improving credit now.

10 Unwanted Hard Inquiries That Will Damage Your Credit Score

If you have ever had to remove inquiries yourself or have contacted Inquiry Busters to remove inquiries, you probably had one or two from debts that you didn’t think about until it was too late, and that’s because when it comes to credit score, there are a handful of usual (but often forgotten) suspects. 

  1. Defaulted Services

You forget the cable bill, and now you’re in collections. Services providers don’t play around, if you miss more than two bills in a row, you will see hard inquiries on your bureau.

  1. Gym Memberships

Although it might seem easier to just stop paying, if you don’t cancel your gym membership properly, there will be hard inquiries from collections.

  1. Car Rentals

Most rental agencies require a credit check when reserving by debit card. To avoid hard inquiries, use your credit card, there is no credit check and you can still pay it off right away.

  1. Overdue Rent

Landlords aren’t interested in excuses, and if you are more than a month behind you will be reported.

  1. Unpaid Traffic Tickets

If you don’t pay now, you will pay later. Unpaid parking or traffic tickets will damage your credit score.

  1. Unpaid Taxes

Even if you evade the taxman for awhile, eventually you will be caught: don’t pay, don’t play.

  1. Unreturned Rental Items

Library books, power tools, DVDs – whatever you borrow, if you don’t return it you will be charged daily late fees and eventually, the cost of the item, which will result in hard inquiries.

  1. Unpaid Medical Expenses

Hospitals don’t chase people, they report them. If you don’t pay your deductible when it’s due, hard inquiries will damage your credit score later on.

  1. Unpaid PRAs (Payday Loans)

When payday companies can’t find you they will sell your file, and that means hard inquiries from a variety of eager collectors.

  1. Applying for Credit

Every credit card application you send means that you may have to remove inquiries later on because every individual inquiry can damage your credit score by a handful of points.

Credit Criticism: Why Credit Checks Might Cause Financial Problems

With credit a hot topic in today’s society, social media is more than skeptical when it comes to the FICO credit score and what financial problems a bad credit score can potentially cause.

Although a person’s credit score can provide a lot of insight into possible risk due to poor money management, debt load, or existing financial problems, it can also cause financial problems that didn’t exist beforehand due to poor risk management, employment decisions, or impacted living.

Risk Management

Great credit scores don’t mean great customers, and the when lazy lenders look at the number instead of the whole inquiry, they put their clients at risk.

For example, an elderly woman with a credit score of 680 might qualify for a great rate, but she wants to borrow money to take care of funeral costs for her husband. She has a small pension, several credit cards and with her husband’s passing, has lost the second income.

Realistically, extending this woman more credit could actually put her at risk for future financial problems, primarily because a number can’t assess her situation on a personal level.

Employment Decisions

Top of his class, graduate with honors, four years of experience, and he aced the interview! The young man in question is a prime employment candidate – that is, until his boss runs an inquiry.

Although Experian, Equifax, and TransUnion have stated on record that they do not provide employers with a score, they do provide them with a record that can reveal previous jobs, past addresses, aliases, and financial information such as recent inquiries, debts, and legal actions.

When an inquiry reveals an applicant has some serious financial problems, he or she may be denied a position based on information that is not representative of their workplace abilities.

Quality of Life

Every citizen has a right to a safe place to sleep, and by law are required to carry insurance when driving. Using credit to determine if an individual qualifies for a roof over their head or denying them the ability to abide by the law due to financial problems isn’t just immoral, it’s unlawful, and concerns over increased use of FICO scores to ostracize individuals with financial problems may soon force government bodies to step in and say enough is enough when it comes to inquiry.

Until then, individuals can only try a clean record by making timely payments, avoiding collections, and removing unwanted inquiries with the help of Inquiry Busters to ensure they aren’t denied important opportunities.