Letter Of Explanation To Underwriter
May 25, 2015
Secured Credit Cards To Improve Credit Scores
May 25, 2015
Show all

Credit Inquiries Will Hurt Your Credit Scores

What Are Credit Inquiries?

Hard Credit Inquiry

Credit Inquiries

Whenever you apply for new credit, there will be a credit inquiry on your credit report.  Credit Inquiries are very bad for your credit scores and will hurt your credit scores.  There are two types of credit inquiries.  A hard credit inquiry and a soft credit inquiry.  A hard credit inquiry is when you apply for new credit such as when you apply for credit cards, auto loan, installment loan, and mortgage loan.  Each hard credit inquiry will drop your credit scores by at least 2 to 5 FICO points.  A soft credit inquiry is when a creditor such as a mortgage company will do a soft credit pull and it does not affect your credit scores.

Check What The Minimum Credit Score Requirements Are Before Your Apply For New Credit

To avoid having a hard credit inquiry on your credit report and have your credit scores drop, do your due diligence before you apply for new credit.  For example, if you want to get several unsecured credit cards, find out what the credit card minimum credit score requirements are before you submit your new credit card application.  Most unsecured credit card companies want applicants with credit scores of at least 700 FICO credit scores.  If your credit scores are in the low 600’s, it will make no sense in you applying for an unsecured credit card with a credit card provider whose minimum credit scores are 700 FICO.  Many consumers apply for dozens of credit cards with low credit scores and get denied one after another.  This tactic will hurt the consumer and evertime they apply for new credit, it will lower their credit scores.

Applying To Multiple Mortgage Companies

Everytime a mortgage company pulls credit on you, they are pulling a hard credit inquiry credit report.  If you are shopping for the best mortgage rates or are shopping for a home loan with bad credit with multiple mortgage lenders, get a copy of your credit report from the first mortgage lender you applied with and when you go to the next batch of mortgage lenders, provide them with the credit report you have and do not have them to pull credit.  All mortgage credit reports are the same and if you have multiple mortgage companies pull your credit over and over again, your credit scores will plummet and you may not even qualify for a home loan if your credit is pulled over and over again.

Can I Remove Credit Inquiries From My Credit Report?

You can remove all of your credit inquiries from you credit report.  The best advise I can give you in trying to get all of your credit inquiries deleted off your credit report is to consult with a professional reputable credit repair consultants.  A good experienced credit repair consultant can not only remove credit inquiries off your credit report, but can delete most if not all of your derogatory credit items off your credit report including judgments, bankruptcies, foreclosures, short sales, deed in lieu of foreclosure, charge offs, late payments, and tax liens.

Related> Lots of Credit Inquiries On Your Credit Report

Related> Will Multiple Credit Inquiries By Lenders Hurt My Credit Scores?

Related> Hard Pull Credit Inquiries

Comments are closed.