Can I get an Unauthorized Credit Inquiry Removed?

Can I Get an Unauthorized Credit Inquiry Removed

Hi Bob,

I received a letter in the mail that said “Cut $350 off your mortgage.” I called because it sounded like a good deal. Just before I was ready to sign, something told me “stop.” I didn’t go through with it because in the contract I was signing for a higher interest rate, and having to bring almost $5000 to closing. “How is this helping me?” I was told “It takes you from FHA to Conventional, no PMI”. Anyway, I didn’t go through with it but looking at my credit report I saw where this company (Network Capital) shopped around with other companies. I now have 4 inquiries from Mortgage Companies. How do I get these off if I didn’t agree, or didn’t apply for credit somewhere? Thank you, Bob. As always, I love your show.

There are a few good “take aways” from this listener’s experience. First, this listener did the smart thing. She listened to her instincts. Sure enough most things sound too good to be true. You can always trust that feeling to at least stop the process and get more information. Second, when buying a house or anything with a payment, be careful when someone is basing everything on monthly payment. Chances are you are being taken to the bank! The interest rate and the costs of doing the deal are way more important than the payment. However, consumers often time base the decision on whether they can afford it.

Can she get the inquiries removed? 

Oftentimes, what appears to be unauthorized is actually admissible. In that paperwork and buried in the fine print, you gave them authorization to do what it takes to complete the deal. Plus, companies just need to have what is referred to as an admissible reason to check a credit report.  The definition of admissible reason is very broad and in most cases the inquiry is admissible because of that definition. Plus, if multiple checks were made on a credit report within a 14-day time period to check terms and conditions, they typically all count as one credit check versus multiple.

 

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