Can Hard Inquiries Be Removed From a Credit Report?

A hard inquiry appears on a credit report when a lender or company requests to review an individual’s credit file as part of a credit application process. This typically occurs when applying for new credit products such as a loan, credit card, or mortgage. The presence of a hard inquiry on a credit report indicates that a consumer has sought new credit.

Understanding Hard Inquiries

A hard inquiry, also known as a “hard pull” or “hard credit check,” happens when a lender assesses an individual’s creditworthiness in connection with an application for credit. This differs from a “soft inquiry,” which occurs when someone checks their own credit, or when a company prequalifies an individual for an offer without a formal application. Soft inquiries do not impact credit scores, while hard inquiries generally do. Lenders perform these inquiries to evaluate risk before extending credit, as they show a consumer’s recent pursuit of new debt.

Circumstances for Inquiry Removal

Legitimate hard inquiries, authorized by the consumer, generally cannot be removed from a credit report before their natural expiration. These inquiries are an accurate reflection of a consumer’s credit-seeking behavior. However, specific situations allow for removal, primarily when an inquiry is inaccurate or unauthorized. This includes fraudulent activity, such as identity theft, where an unauthorized individual applied for credit using personal information. Inquiries due to clerical errors by the lender or credit bureau may also be disputed, such as duplicated inquiries, applications never submitted, or incorrect information.

Steps for Inquiry Removal

To remove an unauthorized or inaccurate hard inquiry, gather information and documentation. Obtain copies of all credit reports from the three major bureaus—Equifax, Experian, and TransUnion—to identify the specific inquiry and its details. If identity theft is suspected, acquire a police report or a Federal Trade Commission (FTC) Identity Theft Report as supporting evidence. Any communication records with the lender involved can also be beneficial.

Next, dispute the inquiry with each credit bureau reporting it. This can be done online through the bureau’s dispute center, by mail, or by phone. Clearly explain the reason for the dispute, such as unauthorized activity or a clerical error, and include all relevant supporting documents. Send copies of documents and retain originals.

Monitor the dispute’s progress. Credit bureaus typically have 30 days to investigate a claim and provide a response. If the investigation confirms the inquiry is unauthorized or inaccurate, it will be removed; otherwise, it remains.

How Hard Inquiries Affect Credit

Hard inquiries can cause a small, temporary dip in a credit score. For most individuals, a single hard inquiry might reduce a FICO Score by fewer than five points. This impact is usually minimal and diminishes quickly, with the score typically recovering within a few months. The effect of a hard inquiry on a credit score typically lasts for about 12 months, even though the inquiry itself may remain on the credit report for up to two years.

While a single inquiry has a limited effect, multiple hard inquiries in a short period could signal increased risk to lenders, potentially leading to a larger cumulative impact on the score. However, credit scoring models often account for “rate shopping” for specific types of loans, such as mortgages or auto loans. Multiple inquiries for the same type of loan within a specific timeframe, generally 14 to 45 days, are often counted as a single inquiry to mitigate the score impact.