When a third party pulls a consumers credit it is called a “hard inquiry” and can reduce the scores. When shopping for mortgages, car loans, leases, as well as student loans inquiries (pulls) reduce the scores differently within certain periods of time called windows. When a consumer pulls their credit directly the score does not decrease. A consumer can pull their own credit 80 times in a day and the score will not reduce. Consumer pulls are also called “soft inquiries”.
It is hard to say exactly how much a hard inquiry can reduce scores since each credit profile may be assigned a different score card based on the risk category it falls under. For some consumers six hard inquiries in a one year period could drop scores as much as 20-40 points while others may have a minimal decrease.
The CARD Act states that your credit card statement must be sent 21 days before your due date. You then get another 30 days before a delinquency is reported. This means consumers have 51 days from the date on the statement to pay without a late payment being posted to credit reports.
Any new late payment can reduce the score dramatically. It does not matter if it is a $1,000,000 mortgage payment or a $10 Macy’s payment: If it is late, the score will reduce dramatically because of the newness of the delinquency.
There are many different scores available online and most of them do not make clear that they are not Fico Scores. These varied scores also have varied ranges. What this means is a 740 score with Vantage, Plus, or Credit Karma may be a totally different number when the banker pulls a Fico Score on the same person.
Yes, closing credit can reduce your scores no matter who closed it.
Yes, opening credit hurts the credit because it reduces the average age of credit.
Depending on the type of credit, the limit on each revolving account, the amount of the balance and the score prior to the balances becoming high, a score can drop 10-150 points.
NO, this is not true. Negative credit can be removed prior to the 7 year or 10 year period it legally can be placed on the report for. There are laws that apply to credit and creditors, courts, collection agencies and credit bureaus that must be followed for the information to remain on their report. If they do not uphold their legal responsibility they are forced to remove this information from the report.
The answer is NO. Credit is not terminal. As long as the consumer is breathing credit can change.
No. You can get credit but you must know which cards to apply for that will accept a consumer with no credit.
You are entitled to a free copy of all three credit reports annually. You can access them by clicking here.
Yes there are many ways to block ID Theft and protect your credit. Please contact us at 914-524-8300 to discuss this.
No, just because you pay a collection does not mean it will automatically be removed. The only legal responsibility the collection agency has is to update the credit report that the collection is paid. In most cases a paid collection will not increase your scores.
Just because your creditor agrees to waive a late fee does not mean they will do anything about removing the late payment on the credit report. A late fee is an extra charge for being late and has nothing to do with the credit report. A late payment and a late fee are two totally different things.