How to remove excessive enquiries for credit from credit files
No matter how much money you wish to borrow, be it as little as $500 or as high as $500,000, there is no guarantee that the lender in question will approve your application. The amount of money you want to borrow, in fact, might not have as much to do with the lender’s decision making as you might think. Just how your credit file looks plays a crucial role in your application for credit, and if it comes with too many enquiries for credit, the same can affect your ability to get credit adversely. Is there anything you can do to remove enquiries from your credit file? Luckily, yes.
Why would I need to remove an enquiry from my credit file?
Every application you submit for credit, which can be for a credit card, a store card, a car loan, or a home loan, finds a mention on your credit file. If you don’t apply for credit often, this is not really a problem, but if you do, it can be.
A common mistake people make is applying for credit without waiting enough in between applications. For example, if a lender refuses your application for credit, you might consider applying with a different lender soon after. If the second lender does not approve your application, you might turn to a third almost immediately. This, as you’ll see, is a folly.
When you apply for credit, the creditor, in all likelihood, would review your credit file. No creditor views too many credit enquiries with favour, and don’t be surprised if this is the reason for your failed credit applications. A typical lender, you should know, would think of such an applicant as a serial borrower, and this can lead to a failed application.
If you’re considering applying for credit, and if you have too many credit enquiries on your file, you would need to remove any possible enquires to increase your application’s probability of approval.
How can I remove an enquiry from your file
Removing an enquiry or more from your credit file requires some effort on your part, and you also have the option of seeking professional assistance. For professional help, you can turn to companies that offer assistance in repairing credit, and if you choose to get help, here’s what the process will entail.
- Get and review your credit file. Start by getting a copy of your credit file, and go through all the credit enquiries on record. Count the total number of enquiries, and establish how many you want removed. Know that as few enquiries on your file as possible is ideal, but accomplishing this is easier said than done.
- Provide information. After you find a suitable company to work with, provide them with as much information as possible. This information would essentially relate to all your previous applications for credit. At this stage, expect the company you’re working with to charge an initial fee.
- Review of information. The company in question reviews all the information you provide, and if it feels it cannot help, it informs you of the same, and you can expect a refund of the initial payment. If the company feels it can be of assistance, it moves forward with your case.
- Addressing specific enquiries. At this stage, you have to provide details of the specific enquiries you want removed, and bear in mind that the removal of each would attract a separate fee. The company you’re working with then contacts the creditors in question, and it tries to get them to remove their enquiries. If they agree, they do so in writing, and when this happens the process to remove the particular enquiry gets underway. At this stage, you might have to pay a final fee.
If you plan to work of removing enquiries from your credit file on your own, you’ll have to prepare letters to send to each creditor asking them to remove their enquiries. Know that if a creditor did not have proper authorisation from you to access your credit file when it did, you can look forward to the removal of the given enquiry.
Once the removal of any unwarranted enquiries from your credit file is complete, getting a fresh copy of your credit file and reviewing it is a good idea. If you still find enquiries that shouldn’t be there, get in touch with the company you’re working with to rectify the same.
What errors can I look out for on my credit file?
When you’re reviewing your credit file, there are certain errors you should watch out for, which include the following.
Your application for credit stands little chance of approval if your credit file finds mention of multiple instances of defaults.
What are defaults and how can they impact my credit file? If you miss making a repayment it counts as a default, and every such instance finds a mention in your credit file. The impact of multiple defaults of your credit file is such that they can lead to unsuccessful applications for credit.
What can I do if I have defaults on my credit file? There are instances when defaults appear on credit files by mistake, and you should keep a particular eye out for such instances. If you find any incorrect default listings, you can take measures to remove them.
What can you do?
The simplest solution is to try and repay your debts as quickly as possible, and you can even consider cancelling certain credit cards. If you’ve transferred balances from old cards to a new card, remember cancelling the old cards once the transfer is complete, failing which, they’ll continue to appear on your credit file. Bear in mind that when you don’t close an account you’re not using, its maximum credit limit continues to appear on your credit file as credit available to you.
What should I consider when trying to improve my credit file?
If you wish to improve your credit file, know that the task is not particularly easy, and it’s important that you approach the process with caution.
- Areas you cannot fix. When you review your credit file, know that there are aspects that you can fix and aspects that you cannot. For example, if there’s mention of a loan you’ve still not paid off, you can’t expect the lender in question to remove its mention. Your priority, on the other hand, should be on fixing mistakes or reducing the number of credit enquiries.
- Unqualified services. Not every credit repair company in Australia is as good, and this field is not devoid of its share of unscrupulous elements. As a result, make sure you choose a reputable and trustworthy company, even if it means spending a little extra.
- Overnight fixes. If you come by a business or an individual claiming to fix your credit file overnight, you’ve got reason enough to be wary, simply because making improvements in credit files requires not just effort, but time as well.
What can I do if a provider declines my application?
If a credit provider declines your application for credit without giving a suitable reason, which is often the case, you should consider going through your credit file. This is because there’s a good possibility that the lender came by something in your credit file that led to an unsuccessful application.
Going through your credit file should give you a clear indication of what your credit history looks like, and if you suffer from poor creditworthiness, take heart in knowing that you can take steps to repair your credit over time. While you can attempt to repair your credit on your own, you can also turn to a credit repair company. Don’t apply for credit again until you take steps to fix your credit, because doing so would only have an adverse effect on your credit file.
Removing enquiries from your credit file can have a much required positive effect on your creditworthiness, but doing this requires some time and effort. If you feel you’re not up to it on your own, you can get in touch with a credit repair company for help, and given the number of options, it’s good that you compare a few before choosing any one.Back to top
Frequently asked questions
How long do credit enquiries stay on my credit file?
Credit enquiries stay on your credit file for five years. Mentions of defaults also stay on your file for five years.
I have a default showing on my credit file that I still haven’t repaid. How can I get it removed?
You cannot get a lender to remove a default listing until you pay the arrears. Once you pay what’s due, the same finds a mention on your credit file, but mention of the default stays on file for five years.
I contacted multiple credit repair companies and they told me they can’t help. What can I do?
If credit repair companies have declined to offer assistance in your case, you should start by trying to get your finances on track. If you have existing credit cards and/or loans, try to repay them in a timely manner, or speak to the creditors and try to work on alternate payment plans. Try to save some money in a savings account every month, and consider getting term deposits in time. These steps would have a positive bearing on your financial health in the future.