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Question By
ernestf01

115 Contributions
1226 People Helped
How may think inquirys and hard inquirys should be removed from credit reporting agencys data
I mean bottom line is. A hard inquiry or a soft inquiry serves the lenders,renters,phone companys or car lots interests. Why should our credit reports be penalized trying to get a loan or credit card for 2 years when whole purpose of the inquiry is to protect their interests. I mean yes your late on payments that's relevant. Your using to much credit yes that relevant except for when a company gives you a starter card with 300 dollar limit. I bought a new play station card maxed. But inquiry's often more times than not they will post on there site will not effect your credit then 6 months later you find they did a hard hit. Or you will go to get a car loan or something and find they submit application to several lenders who each did their own. Its one thing to collect data but its another when the person the data being used against is making on time payments. The real reason hard inquiry's and soft ones are used against you is to prevent us the consumers for shopping for better rate's. Or people who rent and jobs require them to travel from buying a home because all the apartments did a hard inquiry. That's what a deposit is for.

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Top Contributor
82 Contributions
301 People Helped

Hard inquiries have their place

Hard inquiries have their place

Yes, I find it frustrating when I’m looking for a car and the dealer shops my account info around to 6 different creditors and they all hit my credit with an inquiry.  I last did this very thing this June.  Even worse, after you buy the car the selected finance company will often hit it again.  I started on June 15th with 3 inquiries on my report, two of which were close to dropping off.  I started shopping for a car on the last weekend of the month.  By the time the first car payment was due, one credit inquiry dropped off and 7 new ones appeared.  I now had 9 hard inquiries on my credit and my score dropped about 15 points.

It does all even out over a couple of months though.  The extra inquiries cost you a few points, but in a couple of months the duplicates start dropping off and then all of the inquiries other than one related to actually getting the car.  As of today, one more dropped off of my TransUnion report and only 1 is showing (even I think I should have 2 showing).  Equifax makes up for it though by reporting 3.

Don’t be afraid to shop around for your loans to get a good deal.  The credit score hit happens, but it’s temporary even if the inquiries stay visible on your report.  I think the real purpose of the hard inquiries is two-fold.  If you analyze someone’s report you should be able to track the difference between shopping around and trying to get a whole bunch of credit all at once.  Shopping round is fine, but if you’re trying to buy a car and apply for 6 credit cards all at once, there’s a good reason the inquiries should show up and help the creditors consider whether or not granting the credit is a good idea.

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