The Perks of Credit Inquiries
The Perks of Credit Inquiries
Credit inquiries are part of the statement that determines your FICO score and car shoppers need to be aware of the benefits of inquiries to their scores.
If your credit is not very good or spotless then it is wise to know the impact of credit inquiries on your score. Buyers of cars try to inquire about their credit however what they do not know is that if they are not careful, this could do more harm in their FICO score than good.
FICO employees have been blogging about the effects of inquiries to FICO scores when customers inquire for credit.
According to recent news about car loan inquiries: asking for your credit status in a 30 day interval before the scoring will have no significant effect in improving your FICO score, furthermore all inquiries made within a 45 day period are only counted as one but they must be all for auto loan.
According to FICO you should have only short reasonable periods for shopping and it would also be smart to research about the different companies and their auto deals first. If you have bad credit then you should be responsible enough to get a copy of your credit report from the three reporting agencies and your bill for payment in one of your credit.
Here are some inquiries that have no effect in your credit scores:
a) Inquiries for consumer disclosure – this is when a costumer asks for their credit report copy.
b) Inquiries for promotional purposes – this is when lenders would ask for review in credit offers that were previously approved.
c) Inquiries for account review – this is when lenders would ask for review for the accounts that they currently are handling.
d) Inquiries for employment – this is when potential employers requests for employment.
e) Inquiries for insurance – these are requests from insurance companies regarding a client.
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