100 likes | 243 Views
In today’s credit-based culture, a good credit score can mean a great rate and a bad one can mean you're fresh out of luck, even for a new job. With more companies performing soft inquiries to determine employment eligibility, it's more important than ever to maintain a good credit score- but, that means understanding what contributes to your credit score, and what you have control over in terms of trade, debt, or inquiry.<br>
E N D
In today’s credit-based culture, a good credit score can mean a great rate and a bad one can mean you're fresh out of luck, even for a new job. With more companies performing soft inquiries to determine employment eligibility, it's more important than ever to maintain a good credit score- but, that means understanding what contributes to your credit score, and what you have control over in terms of trade, debt, or inquiry.
Using information from TransUnion, Equifax and Experian, FICO compiles your credit information onto one report, and portions of your score depend on how reliable you are, if you always make your payments on time and if you have had credit products for many years without incident. But, each credit inquiry on your file also plays a key role. Keeping in mind that soft inquiries such as you checking your own credit won’t impact your score, not all inquiries are soft inquiries and most credit checks stick around.
Because an inquiry is a request for information by a company which you have requested credit from (or in the case of a debt collector, owe money to) it represents either potential debt or potential credit. Lenders must assume that any recent inquiry could represent monies owing, and the longer the list, the more likely that each new inquiry is an attempt to get credit meaning that you represent a likely repayment risk.
Any more than 1-3 inquiries in a 6 month time period is too many, and could potentially lower your credit score even if everything else on your bureau is in good standing. For this reason, if you are planning on buying a new house or car, or will soon need a large loan, you should make a point to avoid credit inquiry by electing not to apply for new credit cards, small loans, or phone plans that require a credit check.
If it's already too late, your only option will be to stop applying and to wait six months or if you’re in a hurry, have your unwanted inquiries removed by the professionals at Inquiry Busters.
If you attempt correcting your credit on your own and the businesses you contact refuse to remove inquiries, don't respond, or provide what they feel is sufficient evidence of your consent, tryInquiry Busters. In most cases, what it takes to remove inquiries is persistence and if you don't have the time to follow-up, you might not see results.