Inquires Affect Credit Score

There are many little factors that can make lenders feel less inclined to give you credit and even having a large number of inquiries on your report can raise a red flag.

The reason for this is because the lender might assume that you have been trying to get credit from many different lending institutions.

If you have done this and been rejected by the other companies then the one you are currently applying to will be reluctant to give you their money, as they will assume that their funds are at risk if others have declined your applications.

The number of inquiries will be noted on your credit report so it will always be available for lenders to access.

It is better to have all the enquires made within a short time period as it will be reasonable to assume that you were shopping for one loan rather than to have many inquiries spread over a long period of time where it will look like you have been constantly searching for money.

Many inquiries close together will often be combined and represented as one inquiry that won't have any detrimental affect on your score.

The best course of action to take is to do your research of the companies that you intend to use and see what their terms are before you take the next step and get them to do a credit check on you.

By eliminating as many of these businesses as you can with your research you will reduce the number of inquires made against your name.

You can also reduce inquiries by using companies you currently deal with rather than seeking new sources of finance.

These are small factors that can affect your credit score and when you are trying to boost it all these little actions can amount to some positive changes while you are in the rebuilding process.

Credit in Minutes Tip #1

Stay on top of your credit report. Most credit reports contain errors. Make sure you check your credit report every year (you get one free credit report every twelve months) and if there are errors make sure to challenge them with the reporting credit agency. Credit agencies are required to investigate each and every challenge that gets reported.

Credit in Minutes Tip #2

Just because you qualify for all of those credit cards does not mean you should get them. A person with too many credit cards looks sketchy in the eyes of a potential creditor. Think of it this way: if a person is financially stable does he or she need ten different credit cards? Wouldn’t just one or two suffice?

Credit in Minutes Tip #3

The best way to raise your credit score is to make all of your payments on time. It sounds too simple to be true, but that’s all there really is to it. Staying out of debt and/or making all of your debt payments on time will keep your score up where it should be.