Today we’re going to talk about three things that you can do and really understand how the hard inquiries on your credit report got there and how to get your hard inquiries removed. What are the three secrets in removing hard inquiries off of your credit report?
So there’s a step by step process here. I’m going to share with you why hard inquiries are hurting you and really just how to get them off as fast as possible. So let’s get right into it guys.
How do you rack up hard inquiries?
Hard inquiries. First we want to find out why they affect you and really just how they got there.
So first thing is you go to a car dealership. You realize that when you go to a car dealership, they’re going to pull your credit. Now if they pull your credit, it is because you have given them authorization to pull your credit.
However, what is unbeknownst to you is usually this.
They are going to try to get you approved and if your credit is anywhere, typically in the fives or the sixes, you can expect that they are going to shop different creditors to get you approved for a car.
So what happens is you think that they’re just putting a hard inquiry on for BMW. But what happens is because BMW finance may or may not have approved you, they are going to shop it through different subprime lenders. Which means by the time you leave, you end up with 10 to 15 inquiries that do not need to be there.
Same thing for mortgage. Same thing with credit cards. But usually the car industry is the most prevalent and people understand that when they go in there, it’s usually, they’re going to have multiple inquiries.
So that being said, you have to understand a couple things when you’re talking about a hard inquiry.
Number one is if somebody puts a hard inquiry on your credit, it is because you gave him authorization. They have to have a wet signature proving that that inquiry was yours.
The 604 Credit Repair Act
There is an act called the 604 credit report act. Fair Credit Report Act Section 604. And what does this tell me?
This tells me that they have to have legal information, wet signature, driver’s license, and all types of documents proving that the inquiry was yours and that someone did not go on to do that inquiry that was not you.
It is their job and the burden is on them for them to prove that it was actually you by those documents. It is part of section 604.
You’re getting flagged internally
So you guys are trying to get funding, credit cards, trying to get a loan, trying to get utilities, trying to start a business, trying to get vehicles, but you can’t. Because when you look at your credit report, there’s 25 inquiries or there’s 13 inquiries.
And what happens is when you get too many inquiries in internal flag gets put onto your credit report.
When that happens, that means that you are searching for credit. And it seems kind of counterproductive that they would do this, that, wow, this person’s actually looking for credit. It’s a good thing. It’s actually a bad thing.
That’s why they want your inquiries between one and three in the last two years. That’s actually phenomenal. When you start going above that, they start thinking that you’re searching for credit and when you are searching for credit, what does that mean? You are usually cash restricted or cash poor.
So you have to understand the law first. The Section 604 Fair Credit Reporting Act is very, very prevalent. You have to use this. So here, here’s how we do this.
The Secret to getting hard inquiries removed
I’m going to give you a massive secret because again, I want to tell you why the inquiries are there, but more importantly is how do we get them removed?
So part of that act, that 604 act, is a form. And on that form you are going to print this out. And you are going to send that to the credit bureaus, and it’s going to be that act. 604 Section Fair Credit Reporting Act.
You are going to mail this out certified mail. And I always recommend doing certified mail so that way you have a trace. They have a trace. There’s always a tracking number. You are going to send it out.
You can send out overnight, but typically it takes about seven days to get there. You are going to send that out to the credit bureaus.
But before you do that, here’s the massive secret.
That is just the Act. And the inquiries are actually housed in a completely different area that probably you don’t know about. It is called Sage Stream.
Sage Stream is a housing where most of your inquiries, so when they’re verifying the information, the credit bureaus are verifying the information, they are not going to the creditors to get the information.
Where they’re going is a company called Sage Stream. And as of right now, you can go to Sage Stream and actually put a security freeze on your Sage Stream.
So the first step, what you guys need to do, go to Sage Stream, put a security freeze there.
Once that security freeze is there, they’re going to give you a pin so you can always get back in. So if you needed to do that first.
The second thing you need to do is LexisNexis. If you guys heard of LexusNexis, they are a housing facility where basically everybody on your public record can go to validate. It’s where the IRS and the FBI use to validate information.
So by freezing your LexusNexis and freezing your Sage Stream for these pesky inquiries that don’t need to be on there.
Then the steps are this. Step number one, LexisNexis freeze, step number two, Sage Stream, freeze. And then stage number three.
What I want you to do after that is I want you to send out the certified letters to the credit bureaus.
And again, make sure you track that because what’s going to happen is they’re going to validate the information.
Now again, the burden of proof when you send out this Fair Credit Reporting Act, 604, to the credit bureaus is they have to come back, and it typically takes about three weeks.
They have to come back with the burden of proof that show that your driver’s license is there, that your wet signature is there. The legal document is there. All of that has to be provided.
There’s all kinds of laws surrounding this. And if they do not follow that protocol, then what happens is you can actually take them to small claims court.
So you want to make sure you do those three steps, okay?
Once you do those three steps, about three weeks later they’re going to come back with proof or not proof.
Now, if they do not remove the inquiries, then typically what happens is they didn’t follow the steps.
They didn’t legally do what they were supposed to do. As long as they can’t prove that it was you, they legally have to remove it.
You’re also frozen on Sage and you’re also frozen on Lexis. Now, inquiries within the last 90 days typically are a little bit tougher to get removed.
So you got to remember that the ones after 90 days are going to be much easier to be removed.
And remember this, and this is just my recommendation, I would probably not remove an inquiry that is attached to an open account.
Because what happens is on an open account, let’s say a credit card, you’re actually got what you were looking for. So you fill out an application for a credit card for Chase. You’ve got approved for it. You’re actually using the credit card. But then you’re going in and saying, this inquiry is not mine.
And when you do that, what happens is there’s going to be a notification sent to Chase that you’re saying this inquiry was not mine.
And what can happen, and we’ve seen it happen a lot, is that if you challenge an inquiry and open an account, on an open account, not a closed account, or an account that may be, like I said with the car dealership, where they just put a bunch on, is they can actually shut down your line of credit.
Now, this doesn’t typically happen on a mortgage or a vehicle where if you challenge a inquiry from, say you went and bought, a BMW that they’re going to actually come get your vehicle.
But with a line of credit or a credit card, if you challenged the open account that you’re actually using, be very careful by doing that, because they can actually remove your credit line and actually shut your cards down.
Those are your three steps. Typically the process time is about 90 to 100 days from front to start, and that’s just because the inquiries that are after 90 days are much easier to be removed.
Now all that is great, but I can share with you a much faster way if you guys want to do it?
That’s why I give you the information. If it is something that you are interested in us taking care of for you, we have a program for two to three weeks.
Removing hard inquiries even faster
And you’re saying, “Well Mike, how’s it that I can’t do it in two to three weeks?”
Well, we’ve got proprietary software.
We are direct with the three major credit bureaus. We have the internal systems for Sage Stream and LexisNexis.
We’re not using the free versions, which kind of put a little bit of crunch in the holding time. And again, we’re going directly to the credit bureaus with our software.
So that being said, if you’re interested in getting it done in probably the two to three week time-frame versus the three or four month time-frame, then definitely post comments below. Say, “I’m interested in Sweep,” or something, inquiries, inquiry removal.
Post something below that says that you are ready to move forward and have us do it.
We can do it in a much quicker time. I understand that time is money and you guys may not want to wait the three months, but I wanted to do this video to be very transparent and show that these are the steps that you can take yourself to actually get the inquiries removed without having to use somebody else.
If you want it done faster, this is exactly what we do here.
We can help you guys out and actually get these inquiries off much faster. But again, that choice is up to yours. I want to give you the education on it.
Thank you guys. Post in the comments below if you do want our help, or just call us directly at 904-515-6698.
Anyone here on my team can help you and get you set up right away.
Until tomorrow, take care.