Hi, I’m Eric Counts, founder of CreditNerds.com. I’m here to talk to you about inquiries and how too many of them can have a negative effect on your credit score. We’ll cover how much an inquiry affects your credit score, how long inquiries have an effect, how to remove inquiries from your credit report, and some tips for avoiding too many inquiries.
How Much Does an Inquiry Affect Your Credit Score?
When it comes to inquiries, it’s important to understand that each one can cause a small drop in your credit score. Generally speaking, the impact of an inquiry is limited and has a minor effect on your overall credit score. It’s also important to note that multiple inquiries can cause a larger drop in your credit score, so it’s important to be mindful of how many inquiries you’re making.
Another thing to keep in mind is that inquiries are only one factor in your credit score and they are weighed differently depending on the scoring model. For example, the FICO scoring model weighs inquiries less than the VantageScore model. So while inquiries can have an effect on your credit score, it’s important to remember that they are only one factor in the overall equation.
How Long Do Inquiries Affect Credit Score?
Inquiries can remain on your credit report for up to two years, though their effect on your score will lessen over time. Generally speaking, inquiries will have the most impact on your score in the first year, but even after that they can still have some effect.
It’s also important to note that certain types of inquiries will have a different effect on your score. For example, “hard inquiries” are inquiries that are made when you apply for a loan or credit card. These inquiries can have a more significant effect on your score than “soft inquiries,” which are inquiries that are made by lenders for pre-approval offers. Soft inquiries don’t have an effect on your score, so it’s important to be aware of the type of inquiry that’s being made.
How to Remove Inquiries?
If you want to remove inquiries from your credit report, the best way to do this is to dispute them. You can file a dispute with the credit bureaus to have the inquiry removed, but it’s important to note that it can take up to 30 days for the inquiry to be removed.
Another option is to contact the lender who made the inquiry and request that they remove it. Most lenders are willing to do this, but it’s important to keep in mind that it can take several weeks for the inquiry to be removed.
Tips for Avoiding Too Many Inquiries
The best way to avoid too many inquiries is to be mindful of how many you are making. It’s important to only apply for credit cards or loans when you need them and to shop around for the best rates. This will help you get the best deal and avoid making too many inquiries.
It’s also a good idea to be aware of pre-approval offers. These offers can lead to inquiries on your credit report, so it’s important to be aware of which offers are legitimate and which are not.
Finally, it’s important to check your credit report regularly. This will help you stay on top of any inquiries that have been made and help you identify any potential issues.
Inquiries can have an effect on your credit score, but it’s important to remember that they are only one factor in the overall equation. It’s also important to be mindful of how many inquiries you make and to dispute any that are incorrect or unnecessary. By following these tips, you can keep your credit score in good shape and avoid too many inquiries.
If you’re looking for more tips and advice on managing your credit score, be sure to check out CreditNerds.com. We provide helpful tips and advice on how to maintain a good credit score and how to improve your credit score.