The effects of inquiries on credit scores are often confusing to consumers looking to build or rebuild their own credit. No credit check cash advance lenders pay no mind to credit scores while other types of lenders view the history. It ultimately affects the score in a negative manner. Overall understanding of the score and its effect on personal finances will only lend itself to continued improvements.
Cash advance lenders are not part of the norm.
People are now getting the idea of how late payments and maxed out cards hurt their credit scores, but lack in the understanding of what inquiries represent. Inquiries are basically, people looking at your credit information. These people may represent current creditors or potential ones looking to examine your credit worthiness. Cash advance applications are not represented on the report since there is no credit bureau check during the approval process. The credit bureaus keep record of money management skills on your credit report. This pertinent data reflects money management skills over the previous seven years. As old recorded information “falls off” the report, current reports are gathered. Credit worthiness analyzes this information; a critical decision factor for potential creditors and lenders. Current accounts make inquiries to ensure the accounts are updated.
If a person has been having trouble making payments, this information will be noted and negative effects will most often reflect the findings. Most consumers understand this aspect of credit scores quite well. What tends to continue to be confusing is the negative affect as a result of one of the inquiries. When a person monitors their own credit or a company looks in order to send a pre-qualification offer, there is no evidence trail to count against the report. Other inquiries are considered hard inquiries which leave a mark in two different ways. Their visit will be noted on the report from the particular credit bureau checked, but it will also take a point or two away from the total score.
- A creditor that checks Transunion will not see the inquiry from another creditor which used Experian.
- The inquiries stay for two years, but only the first year will negatively affect another creditor’s outlook.
The inquiries project meaningful information for each viewer.
- A person looking into their own report will be able to see who has been viewing their history and when.
- It is an easy indication for others to see that a person has applied for new credit.
- Many listed inquiries may be interpreted as someone desperate for money and will carry with it a negative flag for potential creditors.
- The more reports in a year, the less creditworthy the individual becomes. Many creditors will fear a larger risk of bankruptcy when six or more inquiries are made in less than a year.
- They are a great tool to track potential identity theft.
Since cash advances do no credit bureau checks for approval, many consumers prefer this mode of lending when trying to protect not only their score but also their credit reputation. This short-term money option works well for those who have the income to support the quick payoff. Like any other default loan which is sold to collections, the mismanaged account will harm all three major credit bureau reports.
With no negative affect on the score, people should take advantage of the free reports from each of the major bureaus in order to view what others are seeing. Limit hard inquiries and manage current accounts to keep a positive stance on your credit history.
