Will Inquiries Lower Your Credit Score?
What are inquiries?
When you apply for credit the creditor or lender checks your credit report to verify that you qualify for the credit or loan you are applying for. The "inquiry" is then reported to the credit bureaus and shows up on your credit report.
Does this affect your credit rating or score?
Yes, it does. Although only a few points are deducted from your score for each inquiry, having multiple inquiries may drop your score to a lower bracket, forcing a higher interest rate. You may not even qualify for the loan or line of credit at all.
Will requesting your credit report generate an inquiry?
This is a common misconception and is totally false. You should view your report at least once a month. Doing so will not generate any inquiries.
What if you did not authorize an inquiry, can you dispute it?
Yes. If you did not authorize any of the inquiries on your credit report you can and should dispute them. To dispute inquiries obtain your credit report, then make a copy of your credit report, highlighting the inquiries in dispute. Finally, send the copy of your highlighted inquiries along with a letter demanding the inquiries be deleted from your credit report to the credit bureau.
Is it worth it?
The next time you are out shopping and the salesperson asks you, "Would you like to apply for our credit line and receive 15% off your purchase?" Ask yourself, "Is it worth it?"
About the Author
Scott Brown is a fair credit reporting advocate and the author of his own website Credit Repair (http://selfhelpcreditrepair.blogspot.com), a free information site dedicated to help consumers repair bad credit and optimize their credit reports and credit scores.
Can You Acquire Good Credit Overnight? You Bet.
Your credit file may not reflect all your credit accounts. Although most national department store and all-purpose bank credit card accounts will be included in your file, not all creditors supply information to credit bureaus : Some travel, entertainment, gasoline card companies, local...
Free Credit Report Online - Checking Your Credit Online Is Convenient
Many consumers understand the value of regularly monitoring their credit reports. Identity theft affects millions annually. Furthermore, credit report errors can result in credit card or loan denials. Sadly, many people do not take the necessary precautions to safeguard their credit. There are many...
Understanding Credit Files to Repair Credit
If you are in debt and nagged daily by creditors you might want to understand your credit files to repair your credit. If you are delinquent in payments your credit score is affected, and often you can't get a loan. There are exceptions but if you are able to get a loan or credit card you will...