[dkoen2001]

How can too many inquires be a reason not to extend credit?
Just curious.

[roxette]

Hi dkoen2001

If there are too many inquiries in the credit file, it lowers the credit scores. Then, it's up to the choice of the lenders for extending credit to those with decent scores.

Regards
Roxette

[dkoen2001]

So how can I get the inquiries off my report. Or how long do inquiries stay on there?

[roxette]

Too many of credit inquiries put a bad impression in front of the lenders. They tend to believe that your debt to income may be too much higher that what you say. Due to this reason, you might face problems when you are applying for new credit to your lenders.

All sorts of credit inquiries must be removed from your file after two years. You can also take the following steps to remove them faster:

1. Analyze all the credit inquiries that are giving problems in your way. Order for a copy of your credit report from the three bureaus and look for all the inquiries placed at the end. You don't have to worry for the promotional inquiries placed in it since they are not shown to the lenders. Find out all those inquiries that will be shown to your lenders. You might be able to identify some of them looking back when you applied for credit to them. Others might be mystery for you if you are not sure about them.
   
2. Now, after you have found out all the visible inquiries, contact each of these lenders. Experian lists the addresses of the lenders in the report whereas Trans Union and Equifax reports do not. If you find problems in locating the lenders, you can contact the credit bureau and get the contact number and address of the lenders.
   
3. After you have located the names and address of all the lenders who have placed inquires, you need to draft letters to them requesting for removing it. As per the FCRA, only authorized credit inquires are allowed to stay in the file. Other inquiries must have to be challenged and make sure if the lender had authorization to pull your file.
   
4. After you have challenged the lenders, some of the lenders will show you documents to prove it as a legal one. Read the document carefully where you must have given your authorization to them earlier. If you find it unclear and complicated to understand, you should write them back explaining the matter. You can also take the aid of State Banking Commission if they are unwilling to remove the inquiry from your file.
   
5. A few of the lenders try to ignore the challenge that you have placed. For this reason, you should try to send letter through certified mail with return receipt requested. The inquiry has to be removed within 30 days and if they don't take the necessary actions, you have enough grounds to file charges against them. At this point of time, the challenge to remove the inquiry becomes less important. Now it is the issue of the creditor failing to respond to you.
   
6. After you have taken the actions, many of the lenders will agree to delete the inquiries. Always remember the fact that you might not be able to remove all the inquiries as you expected, but you would have made enough challenges so that you don't get denied from new credit.

All the best.

Regards
Roxette

[kchriste]

Ahh, so your score won't be raised until those inquiries are off your report?

[david]

Inquiries lower the credit scores largely. It is better to check whether the inquiries made by the companies are for legitimate reasons. Review the creditors that have hit your file. If you don't know any creditor doing business with them, they should not be in your file with an inquiry. Compare your CR pulled from all the three bureaus and see the things that you can take care of.

[kchriste]

Well I know for a fact my bank is one of those but they never told me they were doing an inquiries on me for anything and I have had this account for well over a year. Hmm, thanks you guys have been very helpful to me!

[Not so Lucky]

We were told by a creditor that the more inquiries you have the lesser chance for credit. He said it shows you are desperate.

[OverMyHead]

What about inquiries from collection agencies? Sometimes these debits are transferred to different companies multiple times. Do they all have the right to make an inquiry on your report? Especially those third party agencencies that you have no knowledge of?

[david]

Well, a collection agency has the legal rights to view your credit report. The fdcpa laws do not relate it with making inquiries. They are just allowed to view your file in order to get some information about you, but they can't touch it. If they touch it, there should be a legitimate purpose.

[imkimssister]

I have a question that has to do with this subject. What if you have a collection agency, that isn't reporting on your report but they pulled your report twice, about a year apart of each other? I know collection agencies are allowed to pull, but this particular collection agency ENCORE- wrote me and I disputed and asked for validation and I still haven't gotten it. They are not on my credit report at all. So are they allowed to stay on my report as having viewed?

Well I know for a fact my bank is one of those but they never told me they were doing an inquiries on me for anything and I have had this account for well over a year

also, I thought I might address this from kchriste.
did you recently get a debit card from your bank?? the reason I ask is because I noticed that my bank *credit union*, pulled mine as well, and it was about the same time I had put in for a debit card from them. So maybe not in your case, but I think in mine, this is what it was about. We've had this account for 20 years now. Shirley

[OverMyHead]

I have a question that has to do with this subject. What if you have a collection agency, that isn't reporting on your report but they pulled your report twice, about a year apart of each other? I know collection agencies are allowed to pull, but this particular collection agency ENCORE- wrote me and I disputed and asked for validation and I still haven't gotten it. They are not on my credit report at all. So are they allowed to stay on my report as having viewed?

Good question.

did you recently get a debit card from your bank?? the reason I ask is because I noticed that my bank *credit union*, pulled mine as well, and it was about the same time I had put in for a debit card from them.

Yay, here's something I know about! I used to work for a money market firm, in the checking department. When people applied for a DEBIT card, a credit report was run on the client. It was very possible that you were denied a DEBIT card based on your credit. Notice how I say debit card, not credit card. I used to think this was riduclous(sp) since a debit card debits money that you already have in your account, as compared to billing you. But, the reasn for this is because it is quite easy to make your account go negative using a debit card. By running a credit report, the bank/financial firm has insight on your history and can see if your trustworthy enough (with your own money, imagine that!)

Many times people would contact us asking why a credit report was run, and that they were not notified. But, if you read the debit card application (including the tiny disclaimer) you'll see that they did inform you that they would run a report.

[imkimssister]

When people applied for a DEBIT card, a credit report was run on the client. It was very possible that you were denied a DEBIT card based on your credit.

wow, looks like I hit the nail on the head. I have spent alot of time lately going over our credit reports and as I said, I noticed our credit union being on there as someone who did a credit check. The only thing I could think of was the debit card which was around that time since we had not put in for a loan with them. I was approved on my debit card. Imagine that, I got approved to spend my own money!!LOL
Funny how that works, if I was careless and didn't use the debit card wisely, the bank would make money off of me! You get hit with an insufficiant fund fee, which here is like $28 bucks a pop.

Also about that time, (in case kchriste didn't put in for a debit card, maybe its this), our bank gave some of its valued members a $1000 'cushion'. Its an overdraft privilege. They honor overdrafts and charge you the insufficiant fund fee. Which I don't get the point, but okay. This has gotten my brother in law in so much trouble! He's the one that does pay day loans and pawns his car titles. He has the same outlook about this, he'll write a check, knowing that he doesn't have the money, and say what the heck, the bank will cover it. He has owed the bank so much money that when his check showed up through direct deposit, they got it all. I stay away from this and have never used it or even planned to use it. shirley

[OverMyHead]

our bank gave some of its valued members a $1000 'cushion'. Its an overdraft privilege.

Again, your correct. If your account recently had overdraft protection/line of credit added to it, then they would have ran a credit report on you.

Sometimes banks do add them to customer's accounts without the customer being aware of it. With some banks, you can't see the overdraft protection/line of credit limit via ATM/On-line/Phone so I'd suggest calling your bank to find out if one was added.

They honor overdrafts and charge you the insufficiant fund fee. Which I don't get the point, but okay.

It's a ploy by the banks to make you feel "safe". You might be more willing to write a check a bit prematurely, knowing that you have the overdraft protection on the account incase of anything thus dippining into the overdraft where you might not have written the check to begin with. Yes they still charge you the fee so they don't loose money. The only person who looses out is the merchant you wrote the check too. Since it doesn't bounce, they can't charge you bounce check fees.

[kchriste]

Thank you for that insight! I turned my account into a joint account with my fiance last year and I asked to order him a debit card for that account. I already had one, and so did he but not for this account.

That had to speak to him and get all his infomration, but if that's why they checked my credit that doesn't make any sense. Wouldn't they check his and not mine?

[david]

Kchriste, did you jointly sign anything with your fiancé for this account? Banks will like to check the financial history of each and every individual before opening any account. It gives them an idea about the person who is opening the account.