Be Motivated to Be Credit Worthy

Today we would like to provide some information to help you towards a debt-free world. Below is a tip on what a credit inquiry is, and how to avoid negative effects that are associated with them.

What is the definition of an inquiry and what does it matter to the credit conscious consumer?

CREDIT INQUIRY - "An attempt to seek information concerning interest rates and the availability of funds without disclosing your identity, or specifying the need or purpose of the proposed borrowing, or the specifics concerning your creditworthiness."(www.lectlaw.com)

When you take into effect that a credit inquiry can effect up to 10% of your overall credit score you may want to start paying attention. A rule of thumb is to be careful with these inquiries not to accrue more than 4 every two years. If you need to shop for loans, as for a mortgage or some other large sum then try and have these inquiries occur within a 10-14 day period. After seeing thousands of credit reports our friends at Credit2Buy can tell you that usually those who take care of their inquiries usually take care of the other aspects of their credit report.

To make it as simple as possible let's illustrate it like this. Imagine you are playing a game similar to 20 Questions. In this game however it is more like 4 Questions or 4 Inquiries. Use them wisely which means probably avoid giving your full name to used car dealers. They seem to have an affection of running your credit to see what mid sized sedan they can squeeze you into.
Remember:
A credit inquiry can effect up to 10% of your overall credit score.
Never accrue more than 4 inquiries over a 2 year span.
Don't give out your full name to used car dealerships.

For more information on the matter check out credit2buy's blog or email credit2buy@gmail.com