As long as you continue to make timely payments, your credit score typically rebounds quickly from the effects of hard inquiries. (checking your own credit is a soft inquiry and does not impact your credit score.) recent credit applications can account for up to 10% of your fico® score. When considering the fees, it’s important to weigh what you’re getting in return. According to the federal trade commission, credit repair firms can’t legally do anything for you that you can’t do for yourself. Let’s assume your credit report is perfectly clean with the exception of one collection and one charge-off.
When it comes to removing fraudulent inquiries from your credit reports, a credit repair company is simply asking for money to perform a service that you can do for yourself. Now that you’ve removed negative entries and optimized the debt-to-credit ratios on your credit cards, the last step is to start building positive credit history. While some of the negative entries are still falling off your credit report, you might find it difficult to get approved for a traditional credit card. Many credit card issuers offer timely credit score reports on their web sites. If you have access to your accounts online, keep an eye on the score, especially if it is updated frequently.
In this case, you might be able to determine which entry is having the more damaging credit my fico forums impact by looking at which one occurred more recently. For example, if there’s a collection account on your credit report that is three years old, and a charge-off that is three months old, the newer charge-off is damaging your credit scores more. Though hard inquiries aren’t a type of account, they occur when you apply for new credit. Hard inquiries will stay on your credit report for up to two years. Having too many inquiries in a short time period can negatively impact your credit score and may be a reason you get denied credit.
If it plunges and you don’t know why, contact the card issuer or one of the credit bureaus right away. Once you’ve paid off the debt, through the original creditor or the collections agency, or via settlement, make sure you ask for a final payment letter. And keep checking your credit reports — if the account isn’t shown as paid, you’ll have the letter as proof you can use to help get your reports corrected. Even though your account is charged off and the creditor reports it as a loss, you’re still responsible for paying back the debt.
And the charge-off can remain on your credit reports for up to seven years from the date your first missed payment was reported. Inquires aren’t often removed, but I have seen a couple removed from credit reports before, so it’s worth a shot. This is a great, fast way to improve credit scores in a hurry. Certain closed accounts can increase your credit utilization rate.