Key Credit Repair Skills Part2 - Reduce Inquiries of Your Credit Reports

In part 2 of Credit Repair Skills to improve your credit report scores, we continue to discuss the key credit repair mistakes you should avoid. Today, we discusses the impact of inquiries, both online and offline, on your credit report scores.

Avoid Extensive Online Quotation Comparisons. Everyday, countless individuals simply log in to online quotation websites, freely provide their personal details and they get instantaneous quotations, be it student loans, car or home loans, all within a short span of a few minutes and without the hassles of long waiting time for a hard copy from snail mail.

It probably is not obvious to most but it is true that for each quotation requested online, they are listed as inquiries. The more quotes requested, the more inquiries one generates in the credit report and this could eventually result in a lower credit score.

The solution is simple. Research well and focus on a final few companies with potentially the lowest interest and charges, then request for your quotation online.

Too Many Parties Are Reading Your Credit Report. Every time you approve someone to read your credit report, the credit report bureau makes a note in the inquiry section. The more inquiries made upon your credit status the more it reflects that you have been sourcing for credit be they loans, credit cards etc. Worst off if you have been rejected by the lenders.

The conclusion that credit reporting bureaus derive in this scenario would be that you are a bad credit risk in both counts and hence allocate you with a low credit score in your credit report. This problem virally escalates out of control if future lenders make subsequent inquiries. Hence, it is critical that you know and somehow be able to control who reads your credit report.

We suggest two tips if you really need to source for credit. Spend a maximum of a few days to source around for the most suitable credit lines open to you and decide on one. As inquiries made within a few days of each other are usually cumulated together and counted as one, you effectively reduce the number of inquiries that eventually become recorded into your credit report.

Also, do your research as you source around and reverse the process. Instead of having many lenders requesting your credit reports via inquiries, choose your own lenders. Narrow down to a couple with the highest possibility of getting credit. Then approach them. Fewer inquiries eventually mean higher credit score and a financially healthy looking credit report.

Stay tuned for part 3 of this Credit Repair series and do visit my site for more information.

Joey Lee has 17 years of banking, financial, business & marketing experience, holds a CFP & an Executive MBA, and a Platinum Ezine Author. Learn authentic Credit Repair skills and comprehensive information on Credit Repair Tips , credit reports, credit scores at CreditRepairSkills.org