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Hard Inquiries 101

When it comes to understanding hard inquiries, what you need to know is that a “credit check” is a request to review your bureau because you have applied for new credit. Any scrub of your bureau is recorded to show when and why the request was made.<br>

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Hard Inquiries 101

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  1. Hard Inquiries 101

  2. When it comes to understanding hard inquiries, what you need to know is that a “credit check” is a request to review your bureau because you have applied for new credit. Any scrub of your bureau is recorded to show when and why the request was made.

  3. Hard inquiries can include credit checks for: Car Loans Mortgages Credit Cards Student Loans Cellular Plans

  4. Do hard inquiries always lower credit score? The short answer is no, but the long answer is yes. Because hard inquiries are necessary to get credit, each check only causes temporary damage to your credit score. Generally 1-3 inquiries per 6 month period will not adversely affect your score, but that also depends on which service (if any) you took.

  5. Should I be afraid to apply for credit because of hard inquiries? No, but you should be ready to apply for credit responsibly. If you are looking for a new credit card, apply for one card from one company and wait. Patience is a virtue, and it is better to have one inquiry and one approval than hard inquiries you don't want.

  6. What about shopping around for the best rates? Don't worry, lenders understand rate shopping which is why you have 45 days from the time of your first inquiry (for car loans, students loans, mortgages, etc.) to make multiple hard inquiries, all of which will show up only as one inquiry. Hard inquiries made after 45 days will appear as a separate inquiries, so don’t just browse, buy.

  7. Hard inquiries can be caused by financial problems Sometimes, inquiries are made by companies that you owe money to, which are used to check up on your financial situation or financial problems, and this is called skip tracing. Skip tracing helps gather information for legal proceedings or garnishments. 

  8. In these cases, your original contract will state that in the event of financial problems causing non-payment, you consent to this check. Remember; the easiest way to avoid collections inquiries is to pay your debts on time and check your paperwork first.  But if you need to remove inquiries quickly, contact the professionals at Inquiry Busters!

  9. Thanks for stay with us.

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