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 creating a new credit inquiry letter each time you are looking for new credit, you can contact each credit reporting agency directly (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 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.

Is there a catch to your free credit inquiry?

 

Responsible credit seekers know the do’s and don ts of maintaining good credit: don’t overuse your credit, don’t seek excessive credit, do check your credit score regularly, do keep tabs on your debts, do review each new credit inquiry that appears on your credit bureau carefully and do work on improving credit over time.

Is every credit inquiry created equal?

Truthfully, the answer is no. Although many companies advertise free credit reports or credit monitoring, the only official credit inquiry guaranteed by law comes directly from your bureau. Because of the amount of sensitive personal information entered online to retrieve your free credit report, if you are not trying to check your credit using TransUnion, Equifax or Experian, there is no guarantee that the website you’re using (no matter how professional looking it may be) is legitimate.

What should you know about free credit inquiry?

Your credit report and your credit score are different.

A credit score is generated based on information contained in your credit report, which details the number of debts you have, what (if any) debts are in collections, what’s being paid, if that payment is timely, your most recent credit inquiry etc. When you request your credit report, it will not contain your credit score as this can only be obtained from FICO and it is not free by law.

Unless you are familiar with reading a credit report or understand what factors contribute to your score, requesting a credit inquiry might not actually help you determine your credit score. Although common sense will tell you that responsible use of credit is good and abuse of credit is bad, there is no system in place to explain the exact value of every single trade line or credit inquiry.

For most, ordering your free credit report is just a snapshot of your current activities, and will help those planning on improving credit with the help of Inquiry Busters inquiry removal service, or assist in improving credit by getting a better understanding of how they use credit over time.

3 Ways to Remove Inquiries for your Credit Bureau

If you’re trying to figure out how the remove inquiries from your credit report, chances are you have already pulled your credit score, reviewed your hard inquiries and maybe even contacted the companies responsible, but haven’t gotten very far. Unfortunately, this is because the companies you are dealing with don’t want to remove inquiries.

Although technically hard inquiries should only occur if you have given your permission, it doesn’t always work that way. Because the onus is on the company that performs the check to prove you authorized it and in most cases they can’t, the best way to deal with you is to ignore your requests to remove inquiries that they can’t prove.

The ugly truth is that many businesses count on the fact that you don’t have the time to check in daily, making it much easier to ignore the problem (you) until it goes away.

So, what should you do if you’re trying to fix your credit score and don’t see results?

  1. Hire a professional to remove hard inquiries

Inquiry Busters works for you, and because uncooperative businesses take of advantage of your busy schedule by making themselves unavailable, you need someone knows how to remove inquiries and can pick up the phone every hour.

Approach the credit bureau directly

If you are working on your own, 30 days after your first message, email, or letter to the company in question, you should contact each of your three bureaus directly, fill out an official dispute and state that you requested to remove inquiries and were ignored.

  1. Hire a lawyer to handle the issue for you

Although lawyers are effective, they’re also expensive, and it might not be the best idea to hire a lawyer to remove inquiries unless the company that you’re dealing with has performed a number of unlawful checks that you can prove damaged your credit score.

Remember, if you will pay out more money than you stand to gain after you remove inquiries from your bureau, consider what you can realistically afford – an inquiry removal team will always be less expensive, but can’t provide any kind of settlement.

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.

Is there a catch to your free credit inquiry?

Responsible credit seekers know the do’s and don ts of maintaining good credit: don’t overuse your credit, don’t seek excessive credit, do check your credit score regularly, do keep tabs on your debts, do review each new credit inquiry that appears on your credit bureau carefully and do work on improving credit over time.

Is every credit inquiry created equal?

Truthfully, the answer is no. Although many companies advertise free credit reports or credit monitoring, the only official credit inquiry guaranteed by law comes directly from your bureau. Because of the amount of sensitive personal information entered online to retrieve your free credit report, if you are not trying to check your credit using TransUnion, Equifax or Experian, there is no guarantee that the website you’re using (no matter how professional looking it may be) is legitimate.

What should you know about free credit inquiry?

Your credit report and your credit score are different.

A credit score is generated based on information contained in your credit report, which details the number of debts you have, what (if any) debts are in collections, what’s being paid, if that payment is timely, your most recent credit inquiry etc. When you request your credit report, it will not contain your credit score as this can only be obtained from FICO and it is not free by law.

Unless you are familiar with reading a credit report or understand what factors contribute to your score, requesting a credit inquiry might not actually help you determine your credit score. Although common sense will tell you that responsible use of credit is good and abuse of credit is bad, there is no system in place to explain the exact value of every single trade line or credit inquiry.

For most, ordering your free credit report is just a snapshot of your current activities, and will help those planning on improving credit with the help of Inquiry Busters inquiry removal service, or assist in improving credit by getting a better understanding of how they use credit over time.

3 Ways to Remove Inquiries for your Credit Bureau

If you’re trying to figure out how the remove inquiries from your credit report, chances are you have already pulled your credit score, reviewed your hard inquiries and maybe even contacted the companies responsible, but haven’t gotten very far. Unfortunately, this is because the companies you are dealing with don’t want to remove inquiries.

Although technically hard inquiries should only occur if you have given your permission, it doesn’t always work that way. Because the onus is on the company that performs the check to prove you authorized it and in most cases they can’t, the best way to deal with you is to ignore your requests to remove inquiries that they can’t prove.

The ugly truth is that many businesses count on the fact that you don’t have the time to check in daily, making it much easier to ignore the problem (you) until it goes away.

So, what should you do if you’re trying to fix your credit score and don’t see results?

  1. Hire a professional to remove hard inquiries

Inquiry Busters works for you, and because uncooperative businesses take advantage of your busy schedule by making themselves unavailable, you need someone knows how to remove inquiries and can pick up the phone every hour.

  1. Approach the credit bureau directly

If you are working on your own, 30 days after your first message, email, or letter to the company in question, you should contact each of your three bureaus directly, fill out an official dispute and state that you requested to remove inquiries and were ignored.

  1. Hire a lawyer to handle the issue for you

Although lawyers are effective, they’re also expensive, and it might not be the best idea to hire a lawyer to remove inquiries unless the company that you’re dealing with has performed a number of unlawful checks that you can prove damaged your credit score.

Remember, if you will pay out more money than you stand to gain after you remove inquiries from your bureau, consider what you can realistically afford – an inquiry removal team will always be less expensive, but can’t provide any kind of settlement.

Get Ready for Retirement – Remove Inquiries, Repair Credit

Chances are if you are ready to retire, you already have a house, a car, or other investments, after spending your working years carefully monitoring your credit or taking the opportunity to remove inquiries to improve your score, you probably don’t want to do it anymore.

But, is it really a good idea to just forget about your credit?

Plan for Tomorrow, Lives for Today

Would you like to purchase a vacation property, travel, or just enjoy new activities? As nice as it is to imagine the best of your retirement, a certain degree of practicality is required. If you are considering purchasing property, you will want your credit score to be the best it can be which may mean delaying retirement, planning to remove inquiries, or opening a new line of credit. If you plan to travel, you may want the convenience and protection of a credit card over carrying cash.

Tips for improving your credit score before retirement 

  1. Remove unwanted hard inquiries 

We’ve said we’ll say it again, hard inquiries are serious business. Individuals with multiple hard inquiries can push their score up quickly by electing to remove inquiries with Inquiry Busters.

  1. Use a credit card for everyday spending

You might not need to use a credit card, but that doesn’t mean you can’t use one. By using (and paying off!) a credit card regularly, you can maintain your overall credit health. If you need to apply for multiple cards to get one, however, always remove inquiries associated with shopping around.

  1. Check your credit to prevent fraud

An inactive credit score is an easy target, and while checking your bureau regularly won’t improve your score, it will prevent someone else from damaging it and prevent having to remove inquiries later on.

Before you retire, remember:

Good credit doesn’t last forever, and failure to use it will result in a decline in your credit score over time. Although quick-fixes are out there, you will only have so many opportunities to remove inquiries or continue making payments before you will have to address other credit health options.

What Happens During a Credit Inquiry?

It might seem like everything these days requires a credit check – a new cell phone, a cable account, an apartment, a new job. In fact, for many Americans, it might seem like even the phrase “credit check” should come with a stack of legal paperwork, but what exactly happens when a business checks credit score and leaves behind a credit inquiry?

  1. You immediately pass or fail

The first thing that happens when a credit inquiry takes place is that your credit score is revealed, and most lenders have a system to generate an automatic pass or fail based on their own credit inquiry requirements. Not all companies require a perfect score, so even if your credit score is low, you might still pass if it’s higher than this number.

  1. You pass, and your file is reviewed

Maybe you have okay credit, but what does the rest of your file say about you and any potential financial problems you might have? Maybe your car is six payments behind, or your credit card is maxed out. Because credit bureau updates aren’t instant, you can have a good credit score but a terrible credit profile which (during a credit inquiry) will tell your lender that ongoing financial problems are going to turn your good score sour.

Remember, what your lender is mainly looking at during a credit inquiry is if you do or don’t have large debts or the potential to have large debts (i.e. 3 brand new credit cards with no spending history) as each of these credit surprises can spell problems later on.

  1. You pass the review, and your DTI gets checked

During your credit inquiry, a responsible lender will add up the minimum payments on all of your debts including co-signed debts and divide it by your income to get your debt-to-income ratio (DTI). The higher the DTI, the more risk you are, because even if you make $5000 per month if you owe $4900 you don’t have a lot of wiggle room.

Remember, most of the time credit inquiry still relies on the human element, and in order to rule out clients with financial problems, businesses are reviewing you by hand which is why is pays to keep up with your payments and remove unwanted inquiries with the help of Inquiry Busters.

Illegal Soft Inquires – 11 States Preventing Employers from Taking a Look

Most people know that when applying for an apartment or job they may go through a credit check, but did you know that it is not legal to process soft inquiries in all states? In some cases, soft inquiries performed by employers are actually illegal, and despite only 13% of hiring managers admitting to performing soft inquiries for employment purposes in 2012, that is still a significant number.

However, in 2014, 39 newly introduced bills in 19 states resulted in 11 states preventing soft inquiries by introducing new employer restrictions.

Employer credit checks encourage economic discrimination

The push to restrict third-party credit access when it comes to employment and residential services isn’t new, and that is because in most cases persons with good credit have steady cash flow, meaning that individuals with financial problems are effectively being ‘punished’ for having bad credit caused by low income, and are being denied the option of improving credit or circumstance.

In other words, if employers can discriminate against potential employees based solely on the fact that they may have had bad credit in the past, they can be prevented from ever improving credit.

What does it mean to live in a no-credit state?

Although soft inquiries are still permitted for law enforcement officers and in select financial sectors, all other employers in restricted states will face penalization if they perform unlawful soft inquiries.

Currently, states which no longer permit soft inquiries for employment are California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Nevada, Oregon, Vermont, and Washington.

This means that employees in these states (regardless of if they do or do not have existing financial problems) do not have to consent to a credit check, and if they are asked during their application process to sign a consent form, they are actually being asked to waive their legal rights.

Do employment checks stay on your credit score?

Unlike hard inquiries that you would remove with the help of Inquiry Busters, soft inquiries won’t stay on record – but, that doesn’t mean you should consent to a credit check you don’t want.

Personal Inquiry: Are you headed for Bad a Credit Score?

You need to use credit to get credit, but when does credit use become more indicative of financial problems than future financial success? Here are 5 signs that your credit usage is out of control. 

  1. You’re charging because you’re short on cash

If you have a mile-long list of credit card inquiry on your credit report or you are always using your credit card because you want something right away, you might live high off the hog for a few months, but when you max out your cards you will be stuck with your financial problems.

Credit is about convenience, but only if you can pay off your balance without stretching.

  1. You’re charging because you have no savings

Emergency funds are crucial to financial success, and there is a limit to how many times you can rely on a credit card inquiry to result in a brand new, empty credit card. By relying on your ability to get credit as your “safety net” you are guaranteeing that sooner or later, you will have financial problems. 

  1. You always apply for new cards when you can

If you have a credit card for every store you visit, you have too many. Each time you apply for a new card, a new inquiry will appear on your bureau and each inquiry will lower your credit score.

  1. You pay off credit with credit whenever you can 

Although balance transfers (i.e. placing the balance from one card and on another card with a lower interest rate) can save you money in the long run, which only works if you have the means to pay it off?

If you are going through credit card inquiry after credit card inquiry to get approved for a transfer, stop. 

  1. You’re refinancing because you can’t pay up 

Although refinancing can help in the event of short-term financial stress (like a job loss)each instance will result in a new inquiry on your bureau lowering your credit score and costing you hundreds of dollars in interest over the length of your now-extended contract.