How to Remove Credit Inquiries

Hey Jason, I noticed there are a lot of inquiries on my credit report how do I stop people from checking my credit without my permission? Bruce

The first thing you need to know is there are two kinds of inquiries – soft and hard.

A soft inquiry occurs when a company buys your information from one of the 3 credit reporting agencies. For instance, let’s say Capital One wants to get more customers. They may contact Equifax and buy a list of men and women, 18-65 years of age, with FICO scores 680 or greater. They then mail those consumers a pre-approved or pre-qualified credit offer.

A soft inquiry doesn’t hurt your credit score. If you want to stop receiving those types of offers just go to www.optoutprescreen.com or call 1-888-5-OPTOUT begin_of_the_skype_highlighting              1-888-5-OPTOUT      end_of_the_skype_highlighting (567-8688).

A hard inquiry, which makes up as much as 10% of your FICO score, is logged anytime you apply for credit. That includes asking your credit card company for a credit limit increase or applying for a loan to buy a house or car. Hard inquiries stay on your credit report for 24 months, but only the last 12 month’s inquiries effect your credit score.

Authorized or Unauthorized?

The only companies authorized to pull a hard inquiry are those you authorize either verbally or in writing. When you apply for a loan or credit there is a document or clause included that authorizes the financing company, or any or their assigns, to obtain your credit for the purpose of determining risk.

What generally happens is when your account gets transferred or sold, each new company leverages that authorization to obtain new copies of your credit for their own purposes, whether that’s collections or to extend you new credit offers.

Let’s say you apply for car financing. The car dealer’s finance department pulls your credit and sends it to 3 different lenders. Those 3 lenders may also pull your credit under that same authorization. You now have 4 new credit inquiries.

3 years later the car dealer and the lenders all assume your lease is about to run out and you’ll be in the market for another car. Using that same authorization they may pull your credit and send you a pre-approved offer.

You have no idea that all these lenders are pulling your credit, so when you go car hunting you’re surprised to find your FICO score has dropped due to a large number of “unauthorized” inquiries.
Here’s How to Remove Unauthorized Inquiries

If the creditor has a signed authorization, then they are legally allowed to pull your credit. My objection is when they cause you financial problems by abusing that authorization months or years after you gave it. Insiders have told me that most creditors store those documents after 6-18 months.

How does that help you? Just send a certified letter requesting proof they are authorized to pull your credit. If they can’t provide proof, because they can’t find your authorization, then they must remove the inquiry.

Myrtle Beach Credit Repair – Jason Carr 843.839.8578 begin_of_the_skype_highlighting 843.839.8578 end_of_the_skype_highlighting
Today, more than ever, good credit is a must. Our economy demands that consumers have near perfect credit to buy a home, an auto or obtain any type of credit line. At times these requirements can seem unrealistic or unattainable. The staff at Carolina Credit Repair is here to help you improve your credit rating and achieve your dreams.
Do you need a specialist in credit repair? Call 843.839.8578 begin_of_the_skype_highlighting 843.839.8578