You may have seen something on your credit score report that caught your eye: Credit Plus. What is the Credit Plus on your credit score, and what can you do to eliminate it?
We have already told you that the Credit Plus brand is frequent if you make financial movements. What kind of economic movements are we talking about? Well, those that have to do with requesting credits for certain expenses, mortgages, or searching for a house for rent.
In all these cases, it is possible that the person with whom you interact, such as the owner of an apartment you want to rent or buy, is looking for information about you to find out if you meet the economic conditions to reach an agreement with you. Likewise, banks can search for the same information. In all these cases is where Credit Plus appears, and we will give you all the information you need to know so that everything goes well.
What is Credit Plus, then?
It is important, first of all, that you know what Credit Plus is exactly. It is a company or agency that is dedicated to issuing credit reports. But, their second aim is to resell these reports to companies that deal in mortgage lending.
Thus, when a financial institution, for example, wants to sell a flat and has an interested candidate, they will probably turn to Credit Plus. This agency will prepare a report about the credit score of said person and give it to the entity. Once this information is in the hands of the financial entity, they will be able to decide with criteria if said interested candidate is in a position to be able to face the mortgage. Also, if you have a lower score, they can work out an interest rate adapted to your condition.
This way, if you’ve been inquiring about a mortgage or rent, for example, when you receive your actual credit score, you may find the Credit Plus mark on your financial health report.
So far, it seems that there is no problem, but the point is that since Credit Plus has been making checks about your credit score report, your score may precisely drop and, therefore, that you may have fewer possibilities to be approved when applying for a loan.
Types of inquiries that Credit Plus can make on your credit score
So any investigation by Credit Plus can affect your credit score? No, not just any investigation! There are different types of inquiries; It is important to know them and be aware of when your score could drop. They are the following:
- First of all, there are the so-called soft inquiries. These occur when a creditor verifies your financial health without you having yet agreed to a loan or mortgage. That is, to know a little more about you, make a so-called soft consultation with Credit Plus and thus find out what your credit score is, should you, in the future, be interested in renting or buying, or requesting a loan.
- And secondly, there are the so-called hard or exhaustive inquiries, which are the ones that Credit Plus makes for creditors when you have already formally requested a loan. In this case, we can say that this company makes an official credit verification inquiry, which is reflected on your score.
If you have been a worried by these exhaustive consultations, let’s put your mind at ease! Because in these cases, the drop in your credit score will be only a few points, and it will not be permanent. As soon as you are granted the loan and you start repaying it on time, your credit score will rise again and exceed what you originally had.
In what situations can Credit Plus make a hard inquiry? When you want to buy a house, a car, rent an apartment, and even if you request a specific job.
This inquiry will appear on your credit check for perhaps two years. It is impossible to eliminate it from the report except in one situation: if the question does not correspond to an official request on your part for any loan, and you do not consider this inquiry fair because you have not seriously consulted on any mortgage or loan. Then it can be erased.