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Too many inquires being the reason of not getting credit

Date: Thu, 12/08/2005 - 13:12

Submitted by dkoen2001
on Thu, 12/08/2005 - 13:12

Posts: 30 Credits: [Donate]

Total Replies: 29


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


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:
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  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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


    • lrhall41

    Submitted by roxette on Fri, 12/09/2005 - 09:05

    ( Posts: 4009 | Credits: )


    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.


    lrhall41

    Submitted by david on Tue, 01/24/2006 - 18:56

    ( Posts: 1229 | Credits: )


    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.


    lrhall41

    Submitted by david on Tue, 01/24/2006 - 19:30

    ( Posts: 1229 | Credits: )


    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?

    Quote:

    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


    lrhall41

    Submitted by imkimssister on Tue, 01/24/2006 - 20:03

    ( Posts: 1301 | Credits: )


    Quote:

    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.

    Quote:
    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.


    lrhall41

    Submitted by OverMyHead on Tue, 01/24/2006 - 20:39

    ( Posts: 52 | Credits: )


    Quote:

    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


    lrhall41

    Submitted by imkimssister on Tue, 01/24/2006 - 22:10

    ( Posts: 1301 | Credits: )


    Quote:

    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.

    Quote:
    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.


    lrhall41

    Submitted by OverMyHead on Wed, 01/25/2006 - 05:12

    ( Posts: 52 | Credits: )


    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?


    lrhall41

    Submitted by kchriste on Wed, 01/25/2006 - 06:54

    ( Posts: 27 | Credits: )


    OK this is what I just found out. I Asked Rock financial to check inot pre qualification for a home loan. Well I guess teh company they use is Quickenloans via chase credit. They inquired twice! Once on 1/6/06 and the second on 1/11/06 which I did not approve the second inquiry. Well not only is that one there but so is chase (my bank) fort he same exact dates. So I ahve a total of 4 inquiries for this one place. I called chase to get info and they said they couldn't verify anything becasue I was not in their system.

    Would I call rock financial back and find out why they did a second inquiry and why there are so many of them on my report? How do I have the other 3 taken off my CR?


    lrhall41

    Submitted by kchriste on Wed, 01/25/2006 - 09:19

    ( Posts: 27 | Credits: )


    kchriste,

    You should contact the company that did the inquiry. Your credit report should show the address of the inquirer. Send them a letter stating that you did not authorize this inquiry, so they should remove it from your credit report. Send your letter certified, return receipt requested.


    lrhall41

    Submitted by stanley on Wed, 01/25/2006 - 14:14

    ( Posts: 1639 | Credits: )


    Yea actually I got the guy That I gave permission to run my credit and he said he ran my credit with my fiance's on 1/6 and then becasue eh didn't qualify for anything he ran just mine again on 1/11. I'm guessing he's allowed to do that.

    But the inquiry says this Quickenloans via chase. It says that on both of them butt hen when I look further there are two other inquiries for the same exact dates that say CHASE CREDIT, now should chase have done a seperate credit check for the loan company? I mean I would guess they would all be the same. I'll send them a letter but I was just curious! because when I called Chase they had no records of me in their computers.


    lrhall41

    Submitted by kchriste on Wed, 01/25/2006 - 14:18

    ( Posts: 27 | Credits: )


    Yes???send the letter. Mention that your credit report shows CHASE ran an inquiry on --- date. Since you did not permit them, they must remove the inquiry.

    If they fail to respond within 30 days, you can ask credit bureaus to remove it as the inquirer failed to entertain your request.


    lrhall41

    Submitted by stanley on Wed, 01/25/2006 - 14:34

    ( Posts: 1639 | Credits: )


    I was told that there is a law that protects the consumer from having only one inquires when shopping for a loan or in the same industry. The law gives the consumer 14-30 days to complete there search.


    lrhall41

    Submitted by anonymous on Sat, 02/24/2007 - 19:15

    ( Posts: 202330 | Credits: )


    Ok,
    Let's talk about inquiries. The only inquiries that effect your score are coded as hards. A hard is defined as directly relating to a credit transaction that you applied for. Only 10% of your fico is effected by inquiries and they only use hards within the preceding 12 months. The reason some creditors deny for excessive inqs. is that person appears to be trying to take on a lot of debt. If you are mortgage or auto shopping for a good rate,all inqs. during that 14 day period are consoildated as one inq for that transaction. To remove inqs,write to each creditor and ask what was their permissible purpose for pulling report and ask for written proof that you signed agreement for pulling credit. If they did have pp for pulling reports,ask about possibilty of recoding to a soft since creditors do not see these on their pulls. I will leave you with a word of advice.Do not dispute an inquiry attached to a positive tradeline as you may lose that tradeline completely.


    lrhall41

    Submitted by cajunbulldog on Sun, 02/25/2007 - 05:57

    ( Posts: 4850 | Credits: )


    I was colocited by Am Gen for a debt consolidation loan and after a series of questions they got down to asking for DOB and SS# and I askeds if they were going to pull my CC and she said yes that was how they could see if they had a loan for me. I told her to hold off, I did not want my credit pulled and I would think it over and call back. 1-2 weeks later I get what amiounts to a rejection notice that my request for credit was declined due to adverse info on file with Trans Union. What gives? Do I have any recourse?


    lrhall41

    Submitted by anonymous on Fri, 01/16/2009 - 14:42

    ( Posts: 202330 | Credits: )