Your credit report includes detailed information about how you have utilized credit in the past. This includes exactly how much debt you have, and if you have made payments on time. Three (3) major credit-reporting agencies (a.k.a. credit bureaus) track your information. They are Experian, Equifax, and TransUnion. It goes without saying that it can be incredibly difficult to attempt to figure out how credit scores actually work. To make matters worse, there is a bunch of conflicting information making the rounds. That means even the best-intentioned advice can end up being completely wrong.
If you happen to have less than perfect credit scores or are curious about separating the facts from the fiction, please keep reading. The more knowledge that you have about the things that affect the credit scores that appear on your credit report, the better off you will be. There certainly are a bunch of myths that continue to hang around. Do not allow these false tails to derail your path to a better financial future. The following information will help you determine what is real and what is false when it comes to credit. So without further ado, here is the 4th biggest credit repair myth exposed.
Credit Report Myth #4: Receiving Multiple Hard Lender Inquires From Only One (1) Vendor Counts As One Inquiry
A great deal of consumers are under the impression that having your credit pulled multiple times by the same vendor only counts as one credit inquiry. That is completely false. Any bank or lender that runs your Social Security number counts as a hard inquiry. For example, when you visit an automobile dealer and they send you to their finance department, the representative will try to find you the best loan program in order to keep your monthly payment as low as possible. Keep in mind that the lower the interest rate, the lower your monthly payment will be.
Most likely, the automobile dealer does not truly care about getting you the best loan; they simply want to keep your payment as low as possible in order to make the sale. That is why they typically shop your loan around to various banks and lending institutions that they work with. The problem is each time one of their lenders pulls your credit it slightly dings your credit scores. It also stays on your credit history for twelve (12) months. If you have good credit, the car dealer will not need to shop the loan around as much.
Basically, any of their lenders will approve your loan at a competitive rate. However, if you have less than perfect credit, it is a different story. They may need to shop you around to all of their lenders in order to get an approval, let alone a competitive interest rate.
If you feel that you are being treated unfairly by a creditor or collection agency, please contact us immediately. Legal Rights Advocates, PLLC is a consumer advocate law firm that focuses on consumer rights protection services across the Unites States. We have well over twenty-five (25) years of combined experience helping consumers that are experiencing Debt Collector Harassment, Social Security Disability issues, and a whole lot more. LRA is truly your consumer rights advocate. We take great pride in the fact that our job is to protect you from deceptive and or abusive debt collection practices.
Our goal is to assist you each and every step of the way regarding your rights for consumer protection. Please call us today for more information at 855-254-7841 or click here for a FREE Case Review. We look forward to working with you.
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