Over the course of your lifetime, you will need to apply for loans to acquire larger possessions. For instance, if you want to buy a new home, you will need to work with a mortgage lender. Most people don’t have the money to pay cash for a home or car, which is why getting a loan is so important.
Getting approved for a loan can be difficult if you have bad credit. A recent study shows that over 65 million Americans have bad credit. If you are currently dealing with a low credit score, you need to review your credit report. If there are a number of inquiries or mistakes on your credit report, it can bring your score down significantly.
Here are some of the things you need to know about removing inquiries and mistakes from your existing credit report.
What You Need to Know About Inquiries and How to Remove Them
While you may have heard the term hard or soft inquiry in regards to your credit report, you may not know what it means exactly. Each time you apply for a loan, get a new cell phone plan or even apply for a job, you may have an inquiry submitted for your credit report. Most landlords want to know what type of credit a potential tenant has before hiring them. Employers feel like a person with a great credit score is more trustworthy.
The more lines of credit you apply for, the more inquiries your credit report will ultimately have. The longer you allow these inquiries to build up, the lower your credit score will get. A soft inquiry, which is usually run when trying to get a new credit card or an apartment, are not that damaging to your credit report. However, hard inquiries, which are produced when applying for a mortgage or a car loan, can do some damage to your score. This is why removing these inquiries is a must.
Removing Hard Inquiries from Your Credit Report
There are a number of things you can do to remove hard inquiries from your credit report. If you are looking for the easiest way to accomplish this task, then using a service like DisputeBee is a great idea. This service provides you with the tools needed to remove inquiries in no time at all. However, if you want to do this work on your own, prepare to invest a lot of time and energy.
One of the main methods most people use to remove hard inquiries is sending a certified letter who issued the inquiry. If this is the route you are going to take, you need to make sure your letter includes certain details. If the credit inquiry was unauthorized, you need to submit the date of the inquiry. The more information you can provide to a creditor, the easier it will be to get it removed in a timely manner.
Get Your Credit Right Before Applying for a Loan
If you want to maximize the chances of getting a loan for a home or a car, you need to make sure your credit report is in pristine shape. Not only will you need to remove hard inquiries, you should focus on removing mistakes as well. If you have limited experience with taking on credit report errors, hiring professionals to help you out is a great idea. An experienced credit repair service should have no problem helping you address the problems on your credit report. Before hiring a service, be sure to find out more about the experience and reputation they have.