Lecture: Removing Hard Inquiries from Credit Reports

Introduction

• Importance of removing hard inquiries to improve credit scores.
• Impact of inquiries on credit scores and loan approvals.

Understanding Hard Inquiries

• Credit Bureaus: Equifax, TransUnion, Experian.
• Types of Inquiries:
  • Hard Inquiries: Occur when a lender checks your full credit report for an application.
  • Soft Inquiries: Occur without pulling the full credit report, often not affecting the score.
• Impact on Credit Score:
  • Too many hard inquiries can lower the credit score.
  • Example of the 524 rule from Chase: 5 inquiries in 24 months may prevent loan approval.

Hard Inquiries: A Personal Story

• Example story of losing 35 points after multiple inquiries at a car dealership.
• Importance of maintaining a high credit score for favorable lending terms.

Steps to Remove Hard Inquiries

1. Understand the Burden of Proof:
   • The lender must prove that they had authorization for the inquiry.
2. Freezing Accounts:
   • Freeze accounts with Sage Stream and LexisNexis to prevent verification.
3. Disputing Inquiries:
   • Send a dispute letter to the credit bureaus (Experian, Equifax, TransUnion).
   • Use a Fair Credit Act provision (Section 604) to dispute.
   • Ensure the letter is sent via USPS certified mail without a signature.

Additional Resources

• Mention of a free checklist and download link for further guidance.
• Importance of sharing the information to help others improve their credit.

Conclusion

• Emphasis on taking control of personal credit reports.
• Encouragement to utilize the resources provided to manage and improve credit scores.