Hard Inquiries 101

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Hard Inquiries 101
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• When it comes to understanding hard inquiries,
  what you need to know is that a credit check is
  a request to review your bureau because you have
  applied for new credit. Any scrub of your bureau
  is recorded to show when and why the request was
  made.

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Hard inquiries can include credit checks for

• Car Loans
• Mortgages
• Credit Cards
• Student Loans
• Cellular Plans

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Do hard inquiries always lower credit score?

• The short answer is no, but the long answer is
  yes.
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• Because hard inquiries are necessary to get
  credit, each check only causes temporary damage
  to your credit score. Generally 1-3 inquiries per
  6 month period will not adversely affect your
  score, but that also depends on which service (if
  any) you took.

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Should I be afraid to apply for credit because of
hard inquiries?

• No, but you should be ready to apply for credit
  responsibly. If you are looking for a new credit
  card, apply for one card from one company and
  wait. Patience is a virtue, and it is better to
  have one inquiry and one approval than hard
  inquiries you don't want.

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What about shopping around for the best rates?

• Don't worry, lenders understand rate shopping
  which is why you have 45 days from the time of
  your first inquiry (for car loans, students
  loans, mortgages, etc.) to make multiple hard
  inquiries, all of which will show up only as one
  inquiry. Hard inquiries made after 45 days will
  appear as a separate inquiries, so dont just
  browse, buy.

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Hard inquiries can be caused by financial problems

• Sometimes, inquiries are made by companies that
  you owe money to, which are used to check up on
  your financial situation or financial problems,
  and this is called skip tracing. Skip tracing
  helps gather information for legal proceedings or
  garnishments. 

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• In these cases, your original contract will state
  that in the event of financial problems causing
  non-payment, you consent to this check. Remember
  the easiest way to avoid collections inquiries is
  to pay your debts on time and check your
  paperwork first. 
• But if you need to remove inquiries quickly,
  contact the professionals at Inquiry Busters!

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• Thanks for stay with us.