| Out of the eighty eight negative rating factors that can | | | | One key thing to remember is when you apply for |
| hurt your credit score one in particular that I would like | | | | credit with multiple lenders in order to search for the |
| to cover in this article are inquiries. | | | | best rate on a mortgage, auto or student loan FICO will |
| In the credit scoring system inquiries are given two | | | | consider all these inquiries within a 30 day period to |
| types of classifications one being 'soft inquiries' and the | | | | count as a single inquiry. |
| other 'hard inquiries'. Let's cover these two in detail: | | | | Unfortunately there's no way to determine what affect |
| *Soft Inquiries | | | | a hard inquiry will have on your score because it varies |
| These inquiries do not affect your credit score so don't | | | | from consumer to consumer and is based on different |
| be alarmed if you see a lot of these on your credit file. | | | | credit histories. |
| There are three main types of credit checks that fall | | | | Even though hard inquiries can stay on your credit |
| into this classification. | | | | reports for two years FICO's scoring model only |
| 1)Personal - When you order your personal credit | | | | factors in those inquiries from the last 12 months. |
| reports or scores directly from the major consumer | | | | So you will want to be selective where you apply for |
| credit agencies or | | | | credit because too many recent hard inquires can |
| 2)Promotional - Businesses that check your credit for | | | | signal a red flag with creditors. |
| promotional purposes use the data in order to solicit its | | | | If you identify any unauthorized hard inquiries on your |
| products or services such as those pre approved | | | | credit file then you will need to prepare an inquiry |
| credit card offers you find in your mailbox. | | | | dispute letter and submit it to both the consumer credit |
| 3)Procedural - As part of its procedure a company or | | | | agency and creditor. |
| lender that you currently have an established account | | | | This is different than disputing information like a late |
| with may periodically check your credit in order to | | | | payment or collection account. |
| either extend additional credit or look for signs of | | | | Currently none of the consumer credit agencies offer |
| financial distress. | | | | an online dispute option for credit report inquiries so |
| *Hard Inquiries | | | | you will have to submit your dispute via the mail. |
| A hard inquiry is what negatively impacts your score | | | | I suggest you send the letter via Certified Mail Return |
| and according to one additional hard inquiry for some | | | | Receipt Requested so you can properly track the |
| people may take up to but not more than 5 points off | | | | dispute submission and response time. |
| a credit score! | | | | Remember the Fair Credit Reporting Act was put in |
| This credit check happens when a creditor pulls your | | | | place to protect you from unfair credit reporting and |
| report as a result of you applying for credit. | | | | this includes the use of unauthorized hard inquiries. |