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How To Minimize Inquiries For Credit Repair

by | Mar 6, 2024 | News

When you’re in the process of credit repair, it’s crucial to grasp how credit inquiries can influence your credit score. There are two types of inquiries: hard inquiries and soft inquiries.

1. Hard inquiries: These happen when a lender reviews your credit report due to a credit application you’ve made, like for a loan or credit card. Hard inquiries can cause a slight dip in your credit score and remain on your report for up to two years. While one or two hard inquiries may not have a major impact, multiple inquiries in a short span could raise concerns for lenders and harm your score.

2. Soft inquiries: These occur when you check your own credit report or when a lender reviews it for pre-approval offers or background checks. Soft inquiries do not affect your credit score.

Here are some tactics to minimize hard inquiries while focusing on credit repair:

1. Be careful with credit applications: Only apply for new credit when necessary and when you believe you have a good chance of approval. Each application can lead to a hard inquiry, so it’s important to be discerning.

2. Research lenders: Before you apply for a loan, it’s important to research different lenders to understand what they look for in applicants. Some lenders offer tools that can help you check if you’re likely to get approved without affecting your credit score.

3. Combine inquiries: When you’re shopping around for a specific type of credit, like a mortgage or car loan, multiple inquiries made within a short period (usually between 14 to 45 days) are often grouped together as one inquiry. This way, you can compare offers without worrying about multiple inquiries hurting your credit score.

4. Explore other credit options: If you’re worried about the impact of hard inquiries on your credit score, consider looking into alternative credit options that don’t require a hard inquiry, such as secured credit cards or credit-building loans.

5. Keep an eye on your credit report: It’s essential to regularly check your credit report to make sure all inquiries are legitimate. If you come across any unauthorized inquiries, you can dispute them with the relevant credit bureaus.

By being strategic in how and where you apply for credit and staying vigilant about monitoring your credit report, you can lessen the negative effects of hard inquiries while focusing on credit repair.