topic Re: Is it worth it? in Rebuilding Your Credit

Is it worth it?

01mommy — Mon, 02 Apr 2012 17:29:10 GMT

Hello all! Looking for input regarding some inquiries on my credit...I recently applied for a HELOC on an investment property and was denied because the CU doesn't offer HELOCs on non-owner occupied properties, but I asked the rep about that before I applied and she said they did. However, one of the other factors they listed was too many inquiries in the last 12months.

My question is should I fight to have their inquiry removed from my credit file since I was misled into applying for a product that doesn't even exist? I also have two inquiries from BofA and WellsFargo because I submitted offers on REO properties from both and was told by the listing agents that I couldn't submit an offer without pre-approvals from the respective banks, but I have since found out that also was inaccurate; they prefer to hold the loan, but they can't require you to do business with them in order to buy from them. I'm obviously in the rebuilding phase and every point counts...having these three hard pulls removed would put me at 0 inquiries for 2012 and 6 in the last 12 months (4 of which from mortgage shopping over a 10 day period). Has anyone requested an inquiry be removed and seen a change in true FICO scores? Thanks!

Re: Is it worth it?

bridgetkaryn — Mon, 02 Apr 2012 19:00:52 GMT

I have a tendency to fight for every point I can get... because in all reality 1 point can make a difference if you are on the cusp of a interest rate area... Example, if you need a 700 to get a 4% APR on a home and you are at 698, you would be upset you didn't get the inquiries removed because now you have to pay 4.25%... It can't hurt you to try... The worst they can say is no... Just my opinion though...

Re: Is it worth it?

Anonymous — Mon, 02 Apr 2012 19:21:03 GMT

@01mommy wrote:
Has anyone requested an inquiry be removed and seen a change in true FICO scores? Thanks!

I've had inquiries age off my report - most often with zero FICO impact. Of course by that time they're aged as well.

Inquiries tend to produce small or no FICO impacts, and they tend to cause those small changes in groups; i.e. maybe 1-3 inquiries may cause a small drop; maybe 4-5 inquiries would cause the next small drop, etc. ETA: There is no distinct pattern here - it will absolutely vary depending on what's on your credit report. YMWillVary.

Did you pull a FICO score from here? What were the items listed under "What's Hurting Your FICO Score?" They are listed in order of impact, so the top item listed typically has the most impact on score. That's the one I would work the hardest if I was looking for a FICO increase.

Re: Is it worth it?

01mommy — Mon, 02 Apr 2012 19:54:26 GMT

I have SW and Quarterly Monitoring through myFICO...in order they're listed:

1. Collection/Serious Delinquency-these 2 are from student loan lates in April (90) and May (120) 2010 that I can do nothing about. Sallie Mae doesn't report lates for 90 days and has a policy of only removing inaccurate info from credit files...time is my only friend on this one. About how long out does the impact on score lessen? I'm coming up on two years with no lates since then and a $0 balance since it was consolidated

2. Recent Collection-my latest medical collection (of 4) was just sent back in November...they'll all be paid and removed per a rep at the hospital because it's verifiably due to insurance company playing "who, us?"

3. High Utilization (57%)-got those babies to about 4% and 7% in late March, not expecting it to catch up score-wise until May, maybe...both report around the 7th of each month

4. Seeking Credit-this is pretty much all I can do now. Those last three inquiries are serious outliers (they're consecutive for every month this year so far (Jan-Feb-March!) and they just bother me. Especially since I felt like I was duped into applying when I would have never done so if the facts were put before me.

Re: Is it worth it?

Lel — Mon, 02 Apr 2012 20:06:35 GMT

@01mommy wrote:
I have SW and Quarterly Monitoring through myFICO...in order they're listed:

1. Collection/Serious Delinquency-these 2 are from student loan lates in April (90) and May (120) 2010 that I can do nothing about. Sallie Mae doesn't report lates for 90 days and has a policy of only removing inaccurate info from credit files...time is my only friend on this one. About how long out does the impact on score lessen? I'm coming up on two years with no lates since then and a $0 balance since it was consolidated

2. Recent Collection-my latest medical collection (of 4) was just sent back in November...they'll all be paid and removed per a rep at the hospital because it's verifiably due to insurance company playing "who, us?"

3. High Utilization (57%)-got those babies to about 4% and 7% in late March, not expecting it to catch up score-wise until May, maybe...both report around the 7th of each month

4. Seeking Credit-this is pretty much all I can do now. Those last three inquiries are serious outliers (they're consecutive for every month this year so far (Jan-Feb-March!) and they just bother me. Especially since I felt like I was duped into applying when I would have never done so if the facts were put before me.

Compared to the other factors, the inquiries are having a very small effect on your FICO score. I realize that you're tyring to maximize your score, but trying to get the inquiries removed might have zero effect on your score, as beamMEup already suggested.

In addition, there is the possibility that your attempts to remove the inquiries - especially if you try to dispute them through regular channels - may lead to fraud alerts being slapped across all your credit reports. This would make applying for credit more difficult in the future.

Re: Is it worth it?

01mommy — Mon, 02 Apr 2012 21:06:55 GMT

Duly noted, thanks for your input...I just felt like I should be doing something, but at this point I guess I'll just have to hurry up and wait!

Re: Is it worth it?

Anonymous — Mon, 02 Apr 2012 22:28:06 GMT

I for one hate inquiries, and although I don't see to much change on my score I still don't like to have them. I sent a GW letter to BofA for two inquiries they had on my report and they removed them no problems. I would at least try and get that one removed. Just having one less might not make a difference on your score but will make you feel better.