Hi there, All,
I resorted back to lurking here a while ago, but have a new problem I hope someone can help me with. A creditor I haven't dealt with for 12 years has placed an inquiry on my credit report. I'd like to know what this could mean.
Back story: young, dumb, defaulted on a CU credit card. Had a savings account there (honestly don't remember but pretty sure it was enough to more than cover the debt.) They took the funds and closed the account and I thought that's all there was to it.
Many years later, I am reformed credit delinquent with really good, going on great credit. Apped for a mortgage two months ago (haven't found an affordable house yet so no mortgage yet). Of course I have done everything to ensure my files stay clean. No new credit, no lates reporting. Util under 15%. Perfect. And until this happened the only inquiry I had was my mortgage app.
I'm certain they can't do anything about this matter 12 years later, but can this impact my mortgage app? What would a 12-year-late inquiry signal to you?
Did they do an unauthorized hard credit inquiry? Those have to be disputed and investigated since we have to authorize them. Or did they just show up on your reports again? Sometimes companies will do soft pull inquiries to see if you can pay a debt but thats a really old one, maybe they hit the wrong button.
If its a hard inquiry that you did not personally authorize, I would dispute it or see what your loan officer has to say about it.
Thanks for the response! I am going off an alert I got from Credit Karma, so I can only assume it is a hard inquiry or else I wouldn't see it, correct? I did not authorize any inquiries, and have not applied for any credit other than mortgage. I can't imagine they would still have the authorization to do anything with my credit report.
The FCRA is structured to specifically avoid the need for an express consumer authorization for credit inquiries.
Otherwise, credit processing would come to a crawl.
FCRA 604 provides a listing of permissible purposes that provide authorization in and of themselves for inquiries if they apply.
An express permissible purpose if for creditor review of existing accounts, so the inquiry per se is legit.
However, the CRAs code internal account review inquiries as soft, which prevents their being seen by others and prevents their inclusion in credit scoring.
You appear to have a simply matter of mis-coding of a permissible inquiry as hard that should have been coded a soft.
I would contact the CRA and request admin review rather than disputing the inquiry as non-permissible.
Thanks for your input! This is troubling. Would it still be permissible if there is no account 12 years later? I have nothing related to this account on my credit report and haven't for many years. Would the fact that I had a charged-off account there so long ago still give them a legit reason to check my report?
If the account is closed and the debt paid, then the relationship with the creditor is usually terminated.
Thus, there would no longer be an "account of the consumer" that would give rise to permissible purpose of an internal account review.
However, if the debt remains unpaid, you still have a debt obligation with the creditor until it is discharged, and thus they would retain permissible purpose.
Internal account reviews are coded by the CRA as soft pulls, and thus are not viewable by others and not included in your scoring.