You all know this person, and if you don’t it’s probably because it’s you. The person who opens up their wallet or purse, only to receive an explosion of store credit cards like an erupting volcano. This is all due to that delightful store clerk asking them at every store if they want that tremendous 20% off today’s purchases by applying for their store card. Other than having too many revolving accounts, these types of individuals are also being crippled with “too many inquiries” (as indicated on their credit report).
Here is the reality. The impact from applying for this card – or anytime you are applying for debt – will fluctuate from person to person based on their unique report and history. In the overall scheme of things, a single credit inquiry can be big, typically ranging from 2-5 points lost, or one percent of your score. This can really add up over the year. Fair Isaac Corporation’s algorithms will view someone as a greater risk when they see them applying for multiple new credit lines in a short period of time. Think about it; if you have someone applying for a mortgage, car loan and credit card all in the same week they have a much better chance of overextending themselves than someone that pulls their credit once every six months. Statistically, people with six inquiries or more on their credit report in the last 12 months are up to eight times more likely to declare bankruptcy than someone without any inquires at all.
Let’s not forget what a credit score is. It’s a tool invented to make people pay their bills on time and assess their risk. So the more bills you have to worry about each month, the greater the risk you are going to miss one. Something to think about the next time you are tempted to save that 20% while at the mall, or when that new-car smell starts becoming really appealing.
So “maybe” this is you or maybe you are with the other 99.9% of us who just complain that we have unauthorized inquiries on your report doing goodness knows what amount of damage. Regardless of how those shady inquiries got on in the first place, if you send them on over to us they will be leaving in a haste. By the time we are finished, those bureaus will have to verify all sorts of information about the inquiry, and the bureaus and creditors can seldom be bothered with this process.
This is just the first layer of the inquiry onion so stay tuned… For more help call 888-795-9088 and don’t forget to pass along your referral source to qualify for a $100 discount which is over 50% off our initial fees.