tradelines and credit inquires

30 Oct 2018

Can adding tradelines dilute the negative affect of inquires?

I suppose you could say that way. But not really what’s happening. So, if you don’t mind, I’m going to rephrase your question. Can tradelines positively affect credit reports and credit scores even if your credit is pulled multiple times?

The reason I rephrase it this way is to ignore the distinction that credit inquiries are different than any other item that can bring on your credit score. For example, charge-offs, collections, late payments, limited average of accounts, high debt to credit ratios, etc., and all contribute to a decreased credit score. Excessive credit inquiries can also negatively impact credit scores.

So, the answer to your question is, yes, adding positive lines of credit can dilute the negative effect of inquiries. It’s a balancing act, like the picture above.

However, if you’re asking this question, I think it’s fair to assume that there is more in your credit report and excessive credit inquiries. So, I would ask you to reach out to us for full credit report analysis so that we can determine whether the addition of authorized user trade lines is appropriate for your situation or whether a credit repair course of action is necessary.

A client followed up with this question:

How can having tradelines over power having hard inquiries on your credit report? I’m very interested in getting information about boosting my credit score.

We replied as follows:

DeeDee,

I am sure this situation is very specific to you, but I don’t have all the facts. So, I am going to make some assumptions in order to give you a thorough answer.

First, your question implies that inquires have a negative effect on your credit. This isn’t entirely correct. “Excessive” inquires can have a negative impact on your credit score… but, not inquires alone. The reason your credit is negatively impacted by excessive inquires… well, the “logic” behind the algorithm is this: If you have above average inquires, you’ve obviously looked for credit excessively. If no account don’t start appearing on your credit report, this says “Denied” to the scoring model. Other credit experts may use different words to describe what I just said, but it’s all the same thing. It’s a high risk indicator to have a lot of inquires and therefore, you’re score will be lower to reflect the risk.

To answer your question, it depends on your inquire situation. Do you have 96 inquires in the last year? 5 in the last two years? In the case of 96, well, tradelines probably wouldn’t over power those inquires and your credit score may not budge at all. If it’s something more reasonable, like 4,6 maybe 10 in the last 24 months, it’s not really going to matter. Inquires don’t hurt as bad as you think they do, so even if you lost say 5 or 10 points, that’s going to be negligible compared to the points you’d gain from adding tradelines (assuming you are otherwise in a position benefit from them).

As I just wrote all that, I just remembered the second part of your question suggesting that you look forward to getting more information. I was just about to suggest the same thing. Please give us a call or email us and we can go over your specific situation and our answers will be much more applicable.

I hope that helps.

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