Can I Get Rid of Hard Inquiries on My Credit Report?
Understand when and how hard inquiries can be removed from your credit report, and how to effectively manage those that remain.
A hard inquiry appears on your credit report when a lender or creditor reviews your credit history after you apply for new credit, such as a loan or a credit card. This action indicates that you are seeking additional credit, and it can cause a small, temporary dip in your credit score. This article explains when hard inquiries can be removed and how to manage those that cannot.
Identifying Removable Hard Inquiries
An unauthorized inquiry occurs when a hard inquiry appears on your report without your explicit permission or a valid reason. This can happen in cases of identity theft, where someone applies for credit using your personal information without your knowledge or consent. It might also occur due to an error, such as a creditor mistakenly performing a hard inquiry when you only intended to pre-qualify for an offer, or if an inquiry intended for another individual appears on your report.
Inaccurate or duplicate inquiries also qualify for removal, such as when an inquiry contains incorrect information or appears multiple times due to a reporting error. Unlike these errors, legitimate inquiries, which you authorized by applying for credit, generally cannot be removed because they accurately reflect a request you initiated. To identify potentially removable inquiries, regularly review your credit reports from Equifax, Experian, and TransUnion to spot any discrepancies or unauthorized activity.
Process for Removing Hard Inquiries
If you identify an unauthorized or inaccurate hard inquiry, dispute the entry directly with each of the three major credit reporting agencies: Equifax, Experian, and TransUnion. Most bureaus offer online dispute portals, but you can also submit disputes via mail or phone. The Fair Credit Reporting Act (FCRA) grants you the right to dispute inaccurate or incomplete information on your credit reports.
When filing a dispute, provide supporting documentation to substantiate your claim. If the inquiry resulted from identity theft, include a copy of an official police report and an Identity Theft Affidavit. For other errors, a written statement explaining the inaccuracy, along with any relevant correspondence with the creditor, can be helpful.
Upon receiving your dispute, the credit bureau has 30 days to investigate the claim, though this period can extend to 45 days if you provide new information. They will contact the creditor to verify its accuracy, and if the inquiry cannot be verified or is found to be erroneous, it will be removed. Keep detailed records of all communications and documents related to your dispute.
Managing Legitimate Hard Inquiries
Legitimate hard inquiries, which you authorized by applying for credit, generally cannot be removed. These inquiries remain on your credit report for two years from the date they occurred. While a hard inquiry can cause a slight dip in your credit score, its impact is minor and diminishes significantly over the first few months.
Legitimate hard inquiries are a normal part of the credit-building process, signaling to lenders that you are actively seeking credit. For certain loans, such as mortgages or auto loans, multiple inquiries within a specific timeframe (often 14 to 45 days) are treated as a single inquiry for scoring purposes. This allowance, known as “rate shopping,” acknowledges that consumers compare offers without undue penalty.
Manage legitimate hard inquiries by being patient, as their influence on your credit score naturally fades over time.