May 2nd, 2011
Credit Karma Q&A: Hard Credit Inquiries and Accounts in Collections
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Several actions can negatively affect your credit score: hard inquiries, accounts in collections, tax liens, bankruptcies, and foreclosures are some of the most common. But how do they really affect your credit? For how long will it affect your credit score? What can you do if you think the negative information is inaccurate?
All of these are commonly asked questions over in our Credit Advice center, a community-powered Q&A forum. Credit Karma users are always prepared with great answers, many times straight from their own financial experiences.
Here are some responses to the common questions around hard inquiries and accounts in collections.
Hard Credit Inquiries
- Credit inquiries will fall off your report after 24 months. There is nothing you can do to get rid of them, but the negative effect to your score should be relieved within about 4 months. (How do I get rid of credit inquiries?)
- At this point, just see what happens in a couple of months. Scores can fluctuate quite a bit from inquiries and can bounce back quickly. It took about 60 days for mine to bounce back. (Card dealer credit inquiries)
- You can pull your credit reports from www.annualcreditreport.com for free once a year and it will list on there who has pulled your credit. (Hard score inquiries).
- This is potentially a case of identity theft. If you have a lot of inquiries you don’t recognize, call the credit bureaus immediately and put freezes on all of your reports. (Mysterious credit inquiries)
- Although hard credit inquiries don’t have a huge negative impact on your credit score, you should never apply for tons of credit at once. You’ll appear credit-hungry and risky to lenders if you do so. (Credit Karma blog)
Accounts in Collections
- Another option is to get a secured credit card…. I think people spend more wisely when it is their actual money they are spending, instead of an unsecured loan. (How to get rid of collection accounts and charge offs?)
- Settling a debt in collections will often be reflected as “Paid – Not as Agreed” and will affect your credit score. Given that you are in collections already it may not make a big difference. (Paying off debt in collections in full vs. settling)
- Depending on how you resolved your credit collections, these negative marks will reflect in your credit score even after you’ve paid them off… The good news is the effect on your credit score will decrease over time. (Credit Karma blog)
Still curious about how negative marks affect your credit? Head over to the Credit Advice center and ask your own burning question.
And stay tuned to Credit Karma blog because next week, we cover how credit over-utilization and tax liens affect your credit score.