Like most credit-savvy Americans, you keep a close eye on your credit. You might even enlist the help of trusted monitoring services to notify you of changes or new credit inquiries.
Now, you’re wondering: Why is CREDCO on my credit report, and what is CREDCO? These are valid questions, especially if you’ve never heard of the company before. In most instances, it’s a legitimate query and you have no need to worry, but take a closer look before deciding.
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Why Is CREDCO on My Credit Report?
If you recently applied for a mortgage, you might have solved the mystery of how a CREDCO credit inquiry appeared on your report. Most mortgage lenders work with CREDCO to receive merged consumer credit information for home loans.
They then use this information to determine whether to lend, how much, and at what interest rates.
Before you write this off as part of the mortgage process, it doesn’t hurt to verify with the lenders you sought rates from. Some people who steal identities online are crafty. They can align their own credit inquiries with yours based on what you share on social media.
Looking for a house? Wonderful. Now, so are they. Ensure the credit ding did, in fact, come from your own actions.
What Is CREDCO?
So, who or what is behind this CREDCO credit inquiry? CREDCO became a leader in its niche by providing fast data-mining services to clients around the globe. It uses this data to help its clients identify opportunities they can leverage for expansion and growth.
In America, CREDCO made a name for itself serving mortgage lenders. It provides merged credit information from the three major credit bureaus for mortgage lenders to review. When combining the data, it looks for duplicate information and removes it from reports.
It then restructures the information in a format that lenders find easier to navigate and analyze.
Of the 20 top mortgage lenders in America, 19 use CREDCO’s Instant Merge feature. Mortgage lenders also use CREDCO’s Mortgage-Only Credit Feature and Verification of Mortgage.
These features target information related specifically to a person’s mortgage-related credit history, including the size of the loans and payment history.
Additionally, 60 loan origination systems rely on CREDCO’s services.
Is CREDCO a Hard or Soft Pull on My Credit?
Still wondering: why is CREDCO on my credit report? Note that, even if you see it on your credit report or received a notification, it might not necessarily count as a hard pull. Consider how CREDCO uses the two types of credit inquiries.
What Is a CREDCO Soft Pull?
Soft pulls generally occur when someone checks your credit report as part of a background check or to get a basic idea of your credit score. You also generate soft pulls when you check your own credit via free apps, such as Credit Karma.
These do not affect your credit score. More often than not, they do not show on your credit history at all.
A CREDCO credit inquiry generates a soft pull when it uses its Instant Merge Soft Touch and Merges PreQual features. Mortgage lenders use these to prequalify you for a mortgage.
What Is a CREDCO Hard Pull?
Hard pull inquiries always show on your credit report and do affect your credit score. Some people say inquiries have only a marginal impact on your credit score, but that depends on how old your credit history is. If it is only a few years old, a hard inquiry can drop your credit score by 30 points.
However, this is temporary and your credit score climbs up again within months, provided there are no other adverse incidents.
A CREDCO credit inquiry generates a hard pull when mortgage lenders use it to begin the actual process of confirming whether you can receive a mortgage and how much. Though it might not have seemed that way at the time, you likely provided your personal information to CREDCO via the application form and not just the mortgage company.
How Can I Remove a CREDCO Hard Inquiry?
Did your search for why is CREDCO on my credit report lead to suspicions of fraud? You can dispute it with the three main credit bureaus. The bureaus have a legal obligation to investigate every claim filed, but they might take some time to do so.
Unfortunately, each organization has its own dispute process, so you might need to file a dispute with all three. Once you resolve something on one report, the others tend to follow suit. Because there is no actual guarantee of this, it’s best to file your dispute with all three and cover all your bases.
The Federal Trade Commission recommends that you keep records of everything you submit to the organizations and all the correspondences you receive. Also, hold on to any proof you have to support your dispute.
Knowing someone misused your credit can feel invasive. You work hard to protect your finances, and your credit plays a key role in that. Consider the following methods:
1. Report the Individual
If you know the person who fraudulently used your information, such as an ex-spouse, consider reporting the person. Weigh the pros and cons of doing so carefully. The person could face federal charges for fraud. This could be a devastating end to a query on what is CREDCO.
2. Freeze Your Credit
You can freeze your individual credit reports. When you do this, it restricts access to your information, which makes it almost impossible for anyone to misuse your credit. Just remember to unfreeze when applying for credit or participating in any other activity that requires a hard pull.
3. Monitor Your Credit
Chances are that monitoring your credit is how you discovered the CREDCO credit inquiry, so you’re likely on the right track. However, if you haven’t set up push notifications, reconsider this. It’s best to know immediately if your credit is compromised.
Once you answer the question of why is CREDCO on my credit report, it becomes a lot easier to determine what your next steps are. If you did, in fact, seek mortgage rates, congratulations on another step toward achieving the American Dream!
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