Can You Dispute Hard Inquiries on Your Credit Report?

A hard inquiry on your credit report is a record created when a lender reviews your credit file as part of a credit application. These inquiries can cause a small, temporary dip in your credit score. While most hard inquiries are legitimate and occur with your permission, there are specific situations where they can be disputed and potentially removed from your credit report. This guide explains hard inquiries and the process for disputing unauthorized or erroneous ones.

Understanding Hard Inquiries

A hard inquiry, also known as a “hard pull,” happens when a lender or company requests to view your credit report after you apply for new credit. This occurs for various applications, including credit cards, mortgages, auto loans, personal loans, or even some apartment rental applications. Unlike a “soft inquiry,” which happens when you check your own credit or a company pre-qualifies you, a hard inquiry can impact your credit score.

Hard inquiries typically remain on your credit report for two years. Their impact on your FICO Score usually lasts around 12 months. A single hard inquiry might reduce a FICO Score by fewer than five points, though multiple inquiries in a short period can have a compounding effect. For certain loans, such as mortgages or auto loans, multiple inquiries within 14 to 45 days are typically counted as a single inquiry to allow for rate shopping.

Circumstances for Disputing Inquiries

Disputing a hard inquiry is possible only under specific circumstances. A legitimate hard inquiry, one you authorized by applying for credit, cannot be removed from your credit report simply because you regret the application or were denied. These inquiries are a factual record of your credit application history.

However, you can dispute a hard inquiry if it is unauthorized or erroneous. This includes instances of identity theft or fraud, where someone used your personal information to apply for credit without your consent. Another disputable scenario is a reporting error, where a company mistakenly pulled your credit report or recorded an inquiry inaccurately. An unauthorized inquiry indicates someone is attempting to obtain credit in your name, requiring prompt action.

Gathering Information for Your Dispute

Before initiating a dispute, collect all necessary information and documentation to support your claim. You will need personal identification details such as your full name, current address, date of birth, and Social Security number. This information helps the credit bureaus verify your identity during the dispute process.

Gather specific details about the inquiry you are disputing, including its date and the name of the creditor or company that made it. Collect evidence supporting your claim that the inquiry is unauthorized or inaccurate. This might include a police report if identity theft is suspected, a Federal Trade Commission (FTC) Identity Theft Report, or correspondence with the creditor if they acknowledge an error. Submitting copies of these documents, rather than originals, is recommended.

Submitting Your Dispute

Once you have gathered all information, you can submit your dispute. Contact each of the three major credit bureaus—Experian, Equifax, and TransUnion—that report the unauthorized inquiry. These bureaus offer multiple methods for submitting disputes, including online portals, mail, or phone.

When submitting, clearly explain why you believe the inquiry is inaccurate or unauthorized and include all supporting documentation. Credit bureaus are required to investigate disputes within 30 days, which can extend to 45 days if additional documents are submitted. You may also contact the original creditor directly, as they might resolve the issue or confirm an error, potentially expediting the process with the credit bureaus.