| Does my credit score drop when my credit report is | | | | credit report is requested by a lender considering a |
| requested? | | | | new loan or other parties who may have judgments |
| | | | | or liens against the consumer. For example, when a |
| There are a number of misconceptions about how a | | | | credit report is requested by a court or the IRS, a |
| credit score is determined and affected, including the | | | | potential lender may be more reluctant to offer the |
| idea that a person's score automatically drops when a | | | | best interest rate or the maximum loan amount. Credit |
| credit report is requested. The truth is that a credit | | | | bureaus do understand that a number of hard inquiries |
| score is determined by individual credit bureaus only | | | | connected with housing or car loan applications are not |
| after considering a laundry list of factors, such as | | | | unusual, so when a credit report is requested by more |
| payment history and the number of open accounts | | | | than one lending company for the same purpose within |
| that a person has. The number of requests for a | | | | days of each other, it is often counted as only one |
| credit report, also known as inquiries, makes up only | | | | hard inquiry on the credit report. |
| ten percent of the criteria for a credit score | | | | |
| adjustment. Some credit experts say that credit | | | | Whenever an invitation for an unsolicited credit card |
| scores can drop as much as five points when a credit | | | | arrives in the mail, there is always the possibility that |
| report is requested, but others say this is more of a | | | | the sender did make an inquiry into the consumer's |
| myth than reality. | | | | credit status. Fortunately, when a credit report is |
| | | | | requested by an outside interest without the consent |
| "The credit report reads like a map, but the question | | | | of the consumer, the inquiry is not usually counted |
| is where is it leading you? Is it taking you down a path | | | | against the consumer's credit score. Inquiries are |
| of rejections and denials, or is it leading you to a better | | | | supposed to remain on a consumer's credit report for |
| quality of life - a new home, car, or college for your | | | | up to two years, although many lenders are primarily |
| kids? Is it presenting the opportunity for a vacation or | | | | interested in the number of inquiries made in the last six |
| forming the foundation for a brand new business? | | | | months. Applying for too many credit cards or store |
| Let's get you on a GPS system for credit | | | | accounts in a short period of time can make a |
| improvement and get you out of this mess once and | | | | consumer look desperate in the eyes of lenders, |
| for all!" | | | | especially if many of those requests have been turned |
| The Credit Physcian | | | | down. |
| | | | | In short, when a credit report is requested by the |
| There are two different types of credit report inquiries | | | | consumer himself or in response to an existing situation |
| in the credit world: "soft" and "hard" inquiries. A soft | | | | with a creditor, there should be little to no effect on |
| credit inquiry occurs whenever a consumer requests | | | | credit scores. If there are too many inquiries in a short |
| his or her own credit card report from a bureau, or | | | | amount of time, the credit bureau may see that as a |
| when a credit report is requested by a current creditor | | | | negative and lower the consumer's credit score |
| investigating a dispute. This type of credit inquiry is not | | | | several points. This adjustment may have little effect |
| supposed to have any effect on a consumer's credit | | | | on a consumer's ability to secure a loan or open a |
| score since it was made at the request of the | | | | new account, but if the adjusted score falls below 600, |
| consumer himself or an established creditor. A hard | | | | the result could be higher interest rates or a lower line |
| inquiry, however, can lower a consumer's credit score | | | | of available credit. |
| under certain conditions. A hard inquiry occurs when a | | | | |