The credit reporting system has been quoted recently to recognize when multiple inquiries are being made for the same credit application. One example is that of buying in automobile. When an automobile dealer tries to find the best loan to you he might send your enquiry to different lenders at the same time who might access your credit report resulting in multiple inquiries. But for credit scoring models this enquiry will only be counted as one. The rule of thumb is that all inquiries made for the same purpose within the span of 14 days are counted as one regardless of the number of times that your credit report has been accessed. Even the several inquiries have been made the credit score will recognize it as the same enquiry made for the automobile loan.
While these inquiries will be counted as one for the purpose of calculating your credit score all of them will be listed on your credit report separately. All inquiries are listed in the purpose of maintaining a record of as to all access to your credit report and when. This is done for your advantage. It is important that all inquiries are recorded so that you have a complete record of who all have access to your credit report.
Certain utility providers such as satellite TV providers may ask for your social security number in order to check your credit report. Social Security number is a very accurate method of verifying the person’s identity. Since the credit bureaus maintain a person Social Security number as part of the identification information on the credit report certain utility providers may ask the consumer for their Social Security number in order to check the credit report. Each Social Security number is unique to every single individual. So when wanting to check the credit report of a consumer giving the Social Security number is a way of ensuring that the correct credit history is accessed.
Utility service providers may want to check the consumer’s credit report in order to verify the persons credit risk. Since many of the services are of the nature of credit when you use now and pay later having a good credit history will help them to determine that you will be able to pay the monthly service charge as specified in the contract. A record of bad credit behaviour on the other hand will suggest that you will be unable to pay their charges in the future. As long as you have been paying your other bills on time the utility service providers can be confident that you will pay their bills on time as well.
A credit rating is also sometimes used to determine the building package and the downpayment that the utilities service may want to charge the consumer. Having a bad credit history might result in having you to pay a large downpayment to start of the services.
If you do not wish to provide your Social Security number you can speak about this matter to the utility service provider in charge and see if they will agree. It is possible that some may decline to provide the service if you refuse to provide it is vital identification information.
What everybody needs to understand first of all is that there are two kinds of enquiries that are recorded on a credit report. One is called a hard enquiry which is made due to a business transaction that you have initiated with a lender mostly as a result of an application for a loan or credit. The second kind of enquiries are call soft enquiries that are made by people for purposes other than credit lending such as enquiries made by prospective employers were verification, insurance companies, preapproved credit card offers, landlords etc.
All these kind of enquiries come under the category of soft enquiries that are not shown to the lenders in their copy of the credit report. Since this information is not provided to the lenders it has no bearing on your credit rating and is not included while calculating your credit score. Accessing your own credit report will definitely add an enquiry to your credit report but it will be of the soft kind which means that you can access your credit report as many times as you like without impacting your credit score at all.
It should also be understood that the impact of enquiries on a credit score is somewhat overrated. If you have a strong credit history you need not get overly worried about the impact of enquiries on your credit score. The impact in this case will be minimal if at all and may only be temporary. The impact of other negative information such as late payments, delinquent accounts, collection accounts is much more serious than the result of an enquiry.
The impact of a hard enquiry on the credit score may be important for those people whose credit rating is already suffering. Additional enquiries may push the score down beyond a certain threshold where the lender might find the lending risk to be very unfavourable. While enquiries are hardly ever the reason for denial of credit, they can push your credit score beyond a certain point where you become a bad risk. But this usually only happens with people whose credit score is already marginal.
Inquiries made as a result of preapproved credit card offers come under the category of soft enquiries. Since these kind of credit card offers unsolicited offers you have personally not made an application for credit. Hence the enquiries are soft enquiries and are shown only on your personal copy of the credit report. They do not impact the credit score but are still recorded in order to maintain a complete record for your benefit as to who all has access to credit report in the past.
Lenders do not receive information on the enquiries made on your credit report for preapproved credit offers. Hence this information has no bearing on your credit rating and will also be not a basis for approval or denial of a credit application. All enquiries that are made as a result of a business transaction between you and creditor will be reported on your credit report and shown to all future lenders as well as this has a bearing on your credit worthiness. Whenever you apply for credit you are undertaking a potential debt. Since the amount of money you borrow affects your ability to be of any future loans, this information may be vital to a lender in order to decide whether he should extend you more credit than what you already have available to you or not without a big risk on his investment. Hence all credit related enquiries that you have initiated with the lender will be reported and shown to future lenders as well. An enquiry represents an additional debt that may not yet appear on your credit history as an account. That may or may not be significant to the lender depending upon the kind of credit management you have shown in the past.
It must be understood that the impact of a credit enquiry on the credit score is minimal in most cases where there is depth and strength in the credit history. As long as there is positive information that is being reported to the credit report you should not worry much about the enquiries being made on your credit report. However if the credit rating is already suffering due to late payments, delinquent accounts bankruptcy additional enquiries may push your scores further below a certain threshold where you might become a bad risk to the lender.
You can opt out of preapproved credit of us by calling 1 — 888 — 5 – OPTOUT ( 1 — 888 — 567 — 8688). You should think carefully about opting out of preapproved credit offers since many times you receive offers from institutions that are beyond your local community which may sometimes offer you a better deal than the ones are available to you locally.
Unless you cannot resist the temptation of excessive use of the preapproved offers that you get you should not stop the preapproved credit offers from coming in as they might introduce you to new services and better deals that you might need in the future. Once you opt out you can always opt back in by calling in the same number but it may take months before you start receiving the preapproved credit office again.
Inquiries are a record of who all have made a request to view your credit report. Many times enquiries made by certain parties and people do not affect the credit score at all. These, soft enquiries and a typically made by people for purposes other than approving you for a loan or a credit account. Common examples of this enquiries made by a prospective employer, landlords, enquiries by government institutions for the purpose of insurance and verification etc. These can have enquiries are shown only on your personal copy of your credit report.
They are not shown to the creditors in the copy that is provided to them when they are looking to approve your credit application. Since this information is not provided to any creditor or lender these can have enquiries not included in the calculation of the credit score as well and have no bearing in your final credit rating.
The only situation where an enquiry can have an impact on your credit score is when the enquiry is made as a result of an application for credit or loan. However, as long as you have a strong credit history with lots of other positive data on it this impact will be minimal, if at all