Top 5 Frequently Asked Questions

 

How much do credit inquiries hurt my credit scores?



It depends on the type of credit inquiry and how many inquiries you have. There are two types of inquiries: a soft and hard inquiry. A soft inquiry (checking your credit online for example) does not impact your credit scores. A hard inquiry (when you actually apply for credit such as a credit card or loan) will have a negative impact on your credit scores. A hard inquiry can remain on your credit report for two years; however, inquiries over the last 12 months are factored into your credit scores.

Did you know that if you "shop around" for the best rates for a mortgage loan, auto loan or student loan and have multiple credit inquiries, the inquiries may only count as (1) inquiry against your credit scores? For example, if you plan to shop around you should consider doing this within a 30 day period. After 30 days, these inquiries are grouped into a 45-day period where the inquiries only count as one inquiry so you are not penalized for trying to find the best rates on these types of loans. However, keep in mind that applying for credit cards is a different story. Completing credit card applications will have a negative impact on the credit score every single time.

 

Why are collections that I paid over a year ago still on my credit report?

Once a collection account reports to the credit bureaus, it can remain on the credit report for up to 7 years and continue to have a negative impact on your credit scores - EVEN after it's paid. However, there is good news. There is no law that says it "must" remain on the credit report. If the collection account cannot be verified with the creditor by the credit reporting agencies then it possibly can be removed, which will then help your credit scores.

So remember... paid collections on your credit report can still suppress your credit scores.

 

Will checking my credit scores online lower them?



No. Checking credit scores online is considered a "soft inquiry" and will not lower your scores. The type of inquiry that can lower your credit scores is called a "hard inquiry" and this occurs when you apply for credit such as a car loan, credit card, mortgage loan, personal loan, etc. Remember, online credit scores are "educational scores" and not true FICO scores. We do recommend two free web sites to check your credit scores:  www.creditkarma.com www.creditsesame.com

Take a moment now to check your credit scores. If they are below 680 they can cost you a lot of money. If you want to improve your credit scores, call 605-271-8871 and discover how we can help you!

 

Why do I have one credit score that is much lower than my other two credit scores?

The most common reason for lopsided credit scores is that banks, creditors and collection companies are not required to report to all three credit bureaus. In fact, some creditors (usually small community banks) do not report at all.

However, the most common scenario involves collection companies. Many collection companies only report to one credit reporting agency, which means that two credit reports may produce a good score while the third may produce a much lower score. Unfortunately, the same can be said about creditors reporting good information. A creditor may report your good payment history to just one credit bureau but not the other two, which does not help you. So, when you are looking to obtain credit be sure to ask the creditor if they report to all three credit reporting agencies.

 

What does your "No Risk" credit repair mean?

Unlike companies who charge a monthly service fee regardless the results they achieve for you; our credit repair is "No Risk".  This means that you will have the peace of mind knowing that you are actually paying for the correction or removal of qualified items from your credit reports that are lowering your credit scores. When our clients receive a service invoice, they are confident that their credit is improving!

Our "No Risk" Guarantee:
"We guarantee that you will not pay a dime for credit repair until we correct or remove qualified items from your credit reports.  No deletions or corrections = NO CREDIT REPAIR SERVICE FEE!"