Credit Repair Advise
What is a Credit Inquiry?
A credit inquiry which shows up on a
credit report must have a permissible purpose (as defined under
the federal Fair Credit Reporting Act)...
Your Fico score will not reflect
all credit inquiries. A check of your credit report will show
credit inquiries, some you may recognize, some you will
not. Your Fico score will only be affected by inquiries
resulting from applications for new credit filed by the
individual. Do you want to know
"How Can I
Raise My FICO score" ?? 
Inquiries that count toward your FICO
score.
Only one
inquiry type will count against your Fico score. Applications
for a mortgage, car loan, or consumer credit loan, and only
when you authorize the lender to pull your reports. Inquiries
authorized by the individual will appear on your credit report,
and are counted against your Fico score.
Inquiries that don’t count toward your
FICO score.
Credit checks
by businesses for pre-screened offers, individual personal
requests, or established credit accounts, do not count towards
your Fico score. These are called "Soft Hits".
Employer credit checks associated with an application for a job
do not count. These types of inquiries may appear on your
credit report, but they are not included in your FICO
score.
You can
check your own credit and it will not affect your
score.
Checking your credit reports
regularly to be sure they are accurate and error-free is a good
idea. By maintaining accurate credit reports you will be able
practice good account management, which can help to improve
your FICO scores over time.
Checking your score at myFICO
does not count as an inquiry and will not hurt your FICO score.
Inquiries are factors used in determining Fico
scores.
Various information is used to determine
your credit score (5 different factors are used). Each factor
is assigned a percentage % in generating a credit
score:
Payment
history = 35%
Amounts owed = 30%
Length of credit history =
15%
New credit = 10%
Types of credit in use =
10%
The
importance of the 5 factors generate credit scores based on the
overall population. Individuals with a short credit history,
the factors rank of importance will be different.
Inquiries are included in
requests for new credit, this will account for 10% of your
credit score. They are relative to the overall data contained
in your report. For some people, a factors weight will be
determined by an individuals credit history.
Your
report will change as the data received by the agencies
changes, so does the importance of any factor in determining
your score. What's important is the mix of information, this
will change from individual to individual, and anyone over
time.
Inquiries may or may not affect your FICO score. A FICO
score takes into account only voluntary inquiries that result
from your application for credit. Inquiry data used to
determine your Fico scores are:
- Types
of accounts, new accounts, debt to credit limit on new
accounts.
- Number of recent credit
inquiries.
- Time of recently opened accounts,
type of account (revolving, installment, consumer
loan).
- Elapsed time of
inquiries.
Individuals with 1 inquiry may not have their
score affected. For some, your score will decrease by up to 9
points (personal experience).
Inquiries can be adverse to a
credit report, short credit history with many inquiries will
devastate your score.
Research shows individuals with 6
or more inquiries are about 10 times more likely to declare
bankruptcy, than individuals with no
inquiries.
The
inquiry section of your report will show anyone who requested
your credit file over the past 2 years, and the authorized
requests remain in place for the 2 years.
Multiple
inquiries equate to looking for more credit which is
interpreted by lenders as a risk. Unless they are grouped when
shopping mortgage or car rates, these are usually treated as
one inquiry.
Individuals with higher Fico scores usually:
- Pay
bills on time
- Maintain low balances on
accounts
- Open
new accounts only when needed
Maintaining
your credit is very important, here are a few
tips:
Request
credit reports regularly ( check for inaccurate
information)
Order through
a bona fide government backed credit organization
www.annualcreditreport.com
If you need credit repair
help to erase bad credit legally try "Lexington Law
Firm". 
Good Luck
!
Mike
P. s. In
closing, join the
mikescreditstory monthly
newsletter
Informative
articles, follow my own credit repair journey, and a
Free Credit
Repair Toolbox
| 
