Curious about using credit repair letters to remove inquiries? We’re here to teach you everything you need to know about this topic.
Hard inquiries are an important part of your credit score. In fact, they are one of the five main factors that can affect your score (when looking at the FICO scoring model). Too many inquiries and your credit score may drop, as credit bureaus take this factor seriously.
This begs the question – can you use credit repair to remove inquiries?
By the end of this article, you’ll have a clear understanding of what your credit score is and how these inquiries can have an impact. And, you’ll also know how to use credit repair letters to remove inquiries. This knowledge can help you make sure that your credit score is as healthy as it can be! First – let’s provide some basic information on this topic…
What are Inquiries – and How Do They Affect My Credit Score?
Inquiries are a record of when someone, such as a lender, employer, or landlord, checks your credit report. There are two types of inquiries: hard inquiries and soft inquiries.
Hard inquiries occur when you apply for credit, such as a loan or credit card. These types of inquiries can have a negative impact on your credit score, as they may indicate that you are taking on new debt. However, the impact of hard inquiries on your credit score is usually relatively small, and they will only remain on your credit report for two years.
Soft inquiries occur when someone, such as an employer or a lender you have an existing account with, checks your credit report without you applying for credit. Soft inquiries do not have an impact on your credit score and will not appear on your credit report.
In general, it’s a good idea to minimize the number of hard inquiries on your credit report, as they can indicate to lenders that you are taking on new debt.
However, if you are actively looking for a loan or credit card, it’s important to shop around and compare offers, as this can help you to find the best deal. Just be sure to do so within a short period of time, as multiple hard inquiries for the same type of credit within a short period of time will typically be treated as a single inquiry.
Can I Use Credit Repair to Remove Inquiries?
It is generally not possible to remove inquiries from your credit report through credit repair. Hard inquiries, which occur when you apply for credit, will typically remain on your credit report for two years. Soft inquiries, which occur when someone checks your credit report without you applying for credit, do not have an impact on your credit score and will not appear on your credit report.
If you have an inquiry on your credit report that you believe is incorrect or should not be there, you may be able to dispute it with the credit reporting agency. However, it is generally not possible to remove legitimate inquiries from your credit report through credit repair.
As we said earlier – your best bet is to minimize the number of hard inquiries on your credit report in the first place. After the fact, not much can be done. The only instance in which a credit repair company can help you here is if the inquiry is inaccurate or unverifiable.
This is similar to how credit repair can’t remove collections, student loans, or other accurate, verifiable information from your credit score. With that said, that doesn’t mean credit repair won’t work for you…
Credit Repair May Not Help Remove Inquiries, but it is Still Worth Doing…
Why is credit repair important? While you cannot remove inquiries from your credit report through credit repair, credit repair can still be an effective tool for improving your credit score as a whole.
Credit repair involves addressing and correcting errors or negative items on your credit report in order to improve your credit score. Some common negative items that credit repair can help with include errors or mistakes on your credit report, unpaid debts or accounts in collections, and a limited credit history.
By taking steps to address these negative items and demonstrate good credit behavior, you can work to improve your credit score over time. This can include disputing errors with credit reporting agencies, paying off outstanding debts, and taking out new credit accounts responsibly in order to demonstrate your creditworthiness.
It’s important to note that credit repair is not a quick fix, and it can take time for your credit score to improve. However, by taking a proactive approach and working to address any negative items on your credit report, you can work to improve your credit and achieve your financial goals.
What are Different Ways to Handle Credit Repair?
Here are a few tips for getting started with credit repair…
Getting Into Better Credit Habits
It’s important to keep in mind that your credit habits are an important part of your credit health. For example, if you consistently make late payments, then your credit score will show those negative marks. However, that is why it is important to start getting into better credit habits. While improving your habits won’t be able to change the mistakes you made in the past, it can help you avoid making the same mistake again. Some ways that people work on their credit include:
- Pay bills on-time and in-full when they are due
- Keep your credit utilization ratio below 30%
- Only apply for new lines of credit that you need
- Try to avoid submitting too many inquiries at once
Hiring a Credit Repair Company
Another way that people choose to handle credit repair is with a credit repair company. These companies (also known as credit repair agencies) will get a copy of your credit report, review it for any inaccurate items, and then submit disputes to the credit bureaus on your behalf. Thanks to the Fair Credit Reporting Act (FCRA), credit bureaus are required to report accurate information on consumer credit reports.
If the item in question is found to be inaccurate, the bureaus will remove it from your credit report. This means any negative impact will be gone from both your credit report and your credit score! Want to learn if credit repair companies are legit? We have a complete guide on this in our blog.
Final Thoughts on Using Credit Repair to Remove Inquiries
In summary, you cannot use credit repair to remove inquiries if they are accurate and verifiable. However, if they are inaccurate or unverifiable, you can rely on credit repair letters to remove inquiries. This will result in better credit scores, which is something everyone should strive towards.
We hope this answered the question you came here with. If you want to learn more about credit repair, we have a wide array of helpful resources here on our blog. Learn about credit repair for low income families, credit repair for veterans, or when to repair credit. We can also educate you on alternative approaches to improving credit scores or removing hard inquiries on your credit account – like chapter 7 bankruptcy, credit counseling, a credit sweep, or credit restoration.
So – what are you waiting for? Take actionable steps to improve your credit history today!