Credit Inquiries And The Secrets Them

hey guys this is will Roundtree your FICO certified credit specialist credit mastery instructor for the Jade Morrison Academy author of two books credit is king as well as full-time CEO the they don't tell you but more portly I want to take you on this journey about financial literacy the importance of credit how to understand credit and how to get to that money let's go hey guys will Roundtree here two-time author of the books credit is king and full-time CEO the they don't tell you about if you have not picked up either one of those books trust me you're doing yourself a disservice but more importantly I'm coming here to show you and give you some information about credit inquiries see I've actually been in the credit industry for a bit over 10 plus years and in my journey I noticed there's a lot of misconceptions a lot of misinformation and just a lot of things that people really just don't have a grasp on the information and trust me it's not our fault think about it did you know we're not being taught credit in school I mean we may say you know what that is true or why would we want to learn about credit in school because by not learning about credit early by the time we get out of school whether you're going to college or just going right from high school and going to the real world as they call it your credit is gonna impact every single decision and every single move you make try renting an apartment with no credit or bad credit try buying a house with no credit or bad credit try finding a job without having no credit or bad credit it can be extremely difficult and so we need to start understanding how credit works the power of credit how to leverage credit all the things tides credit you know always say that the - well there are several things that they should teach us in school but two of the things that I really feel that they should teach us in school are credit in taxes me we got to use credit every single day of our lives and until the day we die we got to pay taxes so understanding that these are the things that I personally think that we should learn more about but more importantly I'm here to talk to you about credit inquiries see people may not understand the effects or detriment or how credit inquiries can impact you but first of all let's understand the two types of credit inquiries that are out there you have what I call soft credit inquiries and then you have what I call it hard now a soft credit inquiries anytime you go to get your credit pool or you pull it yourself meaning if you go and utilize a credit monitoring service that is what's called a soft credit inquiry or a soft credit pool now this is important to know because some people think by going to check their credit themselves is gonna hurt or drop their credit score and that is not the case so I really want you to understand that you can pull your credit score 10 times every single day 7 days a week 24/7 if you want to and it will never ever ever impact your credit score now did you also know some banks to find out if you are pre-qualified depending on the type of lending you're trying to get access to can run a soft credit inquiry or a soft credit pool now it's really important to understand when you're going to a bank it's ok to ask them these questions but you'll be surprised some of the people in these finance or into financial institutions do not know the difference themselves and so you want to make sure that you're asking them very explicitly hey mr. or mrs. banker hey mr. and mrs. lender is it a soft credit pool or hard and if they don't know who I need you to go and find out because it's really important to understand the difference because credit inquiries can impact you depending on what your situation is now we also have what I call it hard credit inquiries now a horror edit inquiry only impacts you when you're having your credit ran for the purpose to be extended credit meaning you're applying for a credit card you're applying for an auto loan you're applying for a mortgage or whatever it is you may be applying for that could be a hard credit pool now they have some myth out there that every credit pool drops your credit score 3 to 5 points and that's not necessarily true that only you know your credit score drops depending on one the magnitude of the credit pool meaning did you know a denial credit inquiry can hurt you more than an approval because it's going to kind of outweigh itself so you always say that credit profile is like a weighted scale the more positive things you have it can outweigh the few negatives now the more negative things you have is gonna outweigh the very few positives that you have so getting a hard credit pool but let's say you already have a strong credit profile it will not hurt your credit score as much now they also now when it comes to credit pools or a hard credit pool there are some there's some information out there where they say hey if you're going to apply for an auto loan or a home loan if you have so many inquiries pulled within a 7 day window it only counts as one credit pool now that's partially true meaning from a credit score standpoint its looked at is kind of like one credit pool but if you go to an auto dealership that you know they can run your credit anywhere between 7 to 15 times so if you have challenge credit and you're going out there trying to apply for an auto loan and let's say you go to five different dealerships and they pulled your credit let's just say 10 times that's 50 credit inquiries that is a detriment to your credit score because that's going to hurt your credit profile tremendously and potentially hurt your score because most of the time if you're having your credit ran that many times usually they're going to be denials so understand that the more negative the more denied credit inquiries you have is going to impact your score now this also can hurt you when you're applying for credit cards now if you have a challenge credit score a challenge credit profile you want to be careful by just one on what they call a credit card binge and I've seen it happen often someone who is thinking they can get approved for a credit card maybe they've gotten a pre-approval in the mail but understand a lot of times those pre approvals that we may get in a mail it doesn't necessarily mean that you're pre-approved or pre-qualified what happens is is a lot of times these credit card companies do like a mass mailing campaign and what they do is that they've taken data from the census based upon what the average credit score is in that zip code and so let's say the average scouring that zip code was like a 700 and you're somewhere around like a 650 so they're gonna send a mailing campaign to everybody within that zip code you just so happen to fall in here that doesn't necessarily mean that you qualify and so because you as soon as you qualify because you got that pre-qualification now you just amass several hard credit inquiries so you want to be very careful with that because a lot of times that's just marketing now understand having good credit with a bunch of inquiries can also hurt you because did you know if you're trying to get access let's say you're a small business owner and you're trying to get access to some revolving credit cards meaning a business credit card or a business line of credit or whatever the case is hard credit inquiries can impact you because did you know that banks deem more than seven inquiries on your Bureau on all three of your credit bureaus over a 24 month period is considered excessive and so with that being said we have to be very careful making sure we keep our credit inquiries to a minimum but needless to say or no need to fear did you know you can actually dispute credit inquiries that's right you can dispute them because if you don't let's say you amassed those 50 credit inquires because you went out trying to apply for auto loan and over time over the next you know several months you improve your credit but those credit inquiries are still on here and it without understanding that you can dispute them your credit inquiries will stay on your credit report for 25 months that's right two years because it falls off on the twenty-fifth month of the the month where you got it you know your credit ran two years prior 25 months prior but you definitely can go in and dispute your credit inquiries be able to keep your credit profile clean so you can stay at that benchmark of 7 inquiries and below and that 7 is combined between all three credit bureaus that's not 7 per bureau and so just understanding that the difference between a hard credit inquiry and a soft a soft and Quarrie remember it does not hurt your credit score you can pull your credit yourself as many times as you need to it will not impact you a horror credit inquiry yes it will impact you understanding that when anytime you're applying for credit a home or mortgage or credit card you will incur a horror credit inquiry now one thing in relation to credit cards and credit inquiries is something that I want people to know are what I call credit limit increases with some banks or institutions like to call Co lies now did you know not all banks will do a hard credit inquiry when you are asking for a CL lie some of them may only ask some of them may just do a soft now the downfall to that is is that let's say when you first apply for that credit card you had a six you know fifty credit score and you got to prove four let's just say a thousand dollar credit limit let's say it's one of those second-chance credit cards where you know you're rebuilding your credit all of that good stuff now were you calling a bank asking for a credit limit increase or CLI which is commonly referred to if they do was called a soft credit pool what's going to happen is is sometimes they're gonna refer back and look back at your previous credit score because let's say it's six to nine months later and now you have a 720 credit score so some banks when they do a soft pool they're gonna go back and look at your original application even though your score has improved they're gonna go based off of the 650 so what you want to do sometimes is ask for a manual review because then what they'll do is they'll go in and look at your updated credit score an updated credit profile where you now have a 720 thus now giving you a better odds of getting that credit limit increase from a thousand to whatever the increase is gonna be or whatever you're gonna qualify for so just understanding how credit inquiries work when it comes to dealing with credit card companies I know a lot of people don't understand that you know having that hard credit inquiry could actually be helpful for you because keep in mind remember we talked about a credit profile being like a way to scale yes you got a hard credit inquiry for that credit increase but if you got an approval it didn't impact you as much secondly you got an increase giving you access to a more revolving credit which we know revolving credit as long as you keep that balances down it makes up 30% of our credit score so again the weight of the approval the higher the higher credit line obviously is going to outweigh that one credit pool of on your credit report so sometimes we have to just pick the lesser of two evils I'm always going to take the evil of hitting the higher increase because having access to more credit again just gives you access to more potential lifelines if needs so so again the difference between like I say the hard and soft heart inquiry only hurts you for when you're being for the purpose of being extended credit you're going to get a hard inquiry soft means you're pulling your credit yourself and trust me no matter how many times you pull it it will not impact your credit score so hopefully you guys have learned you know kind of the truths and how credit inquiries work and so I'd strongly urge you first just go out there and pool and look at your credit report so you can even see what your credit inquiries look like because I can assure you if you have a ton of credit inquiries because you didn't know more than likely it is impacting your overall credit profile but needless you know no need to worry you can always go in dispute your credit inquiries if that is the case so again family my name is Wil Roundtree make sure you click the link below to going purchase either one of my books full-time CEO the they don't tell you about or credit is king and I'll see you guys at the top [Music]

Channel: Mr. Will Roundtree

Views: 10,556

Rating: 4.9571209 out of 5

Keywords: Credit Inquiries, How to get the perfect credit score, credit, real estate, credit repair, how to boost credit score, how to get perfect credit, how to, credit utilization, perfect fico score, how to repair credit, business funding, 850 credit score, 700 credit score, tips and tricks, step by step, credit inquiries, credit history, business credit cards, business credit, business loans, business loans for startups, business loans for bad credit, credit card for business

Id: 1CwJza7c1lI

Length: 12min 53sec (773 seconds)

Published: Tue Dec 31 2019