Most credit repair services, kits and ebooks would advise you correctly that valid queries on your credit report will not drop off until two years from the date of inquiry. This is the law, and I do not intend to challenge the law in this article, however I do want to share with you a little known way to potentially delete valid inquiries from your credit reports, without waiting for expiration date.
First, so we are aligned, there are different types of inquiries that show up on your credit files. Not all inquiries are harmful to your credit score, and not all inquiries are visible for would-be creditors to view.
The first type of credit report inquiry is often called a "soft inquiry". This type of inquiry can only be viewed by yourself, and does not affect your credit score for the better or worse. An example of this type of inquiry would be when you retrieve a copy of your credit reports. By law, the credit reporting agencies, Equifax, Experian, and Trans Union, must keep a record of every disclosure of your credit reports, even the disclosure to you yourself.
Another example would be an "account review". By law, existing creditors have the right to review your credit reports while you have a financial relationship with them. This again does not impact your score, or show to other creditors upon application, however it does show you when these disclosures are made.
Which brings us to other type of inquiry, also known as a "hard" inquiry. A hard inquiry does affect your credit score, and it is viewable to all would-be creditors that pull your credit reports. This should beg the question, "why should an inquiry affect my credit score?"
Logically, and the most simplified explanation would have been to put it this way. To a potential lender or creditor, your inquiry, specifically the more recent ones, can lead them to believe they should be aware of "competition" to your income.
Said another way, if you are seeking credit from other lenders, your income could be spread more thin in the odds of paying back your lenders. In addition, you could be approved for credit, and for all the new creditor knows, you could furnish your entire household the next day with $ 1000's of dollars in debt, negatively affecting your debt to income ratio.
Sounds too elementary, but so is the the base concept of companies keeping tabs on your payment habits, is not it?
So to the question at hand. How can I possibly remove these hard inquiries from my report, thereby improving my credit score?
What many credit repair guides and services fail to mention is that you can request to merge valid credit inquiries with the resulting accounts. For example, if you apply for an American Express card, you will inevitably receive an inquiry on your credit reports. If you then get approved for the credit card, you will also see the account listed on your credit report as a trade-line. You are in effect, having this account impact your credit reports twice.
By requesting that the inquiry be merged with the account, you will improve your credit score, and show less hard inquiries on your credit files.
Review your reports today, and take action!
Source by Tim Irish