How Can I Get Hard Inquiries Off My Credit?

Credit inquiries are recorded on credit reports and show a person’s borrowing activities. Hard inquiries are particularly relevant as they can influence credit standing. This article focuses on understanding hard inquiries and the specific, limited circumstances under which they can be removed from a credit report.

Understanding Hard Inquiries

A hard inquiry occurs when a lender or creditor requests to review a credit report as part of a credit application. This happens when an individual applies for new credit, such as a credit card, mortgage, auto loan, or personal loan. Lenders use these inquiries to assess the applicant’s financial behavior and determine their eligibility and terms.

Hard inquiries differ from soft inquiries, which do not impact a credit score. Soft inquiries occur when an individual checks their own credit report, when a company pre-screens for promotional offers, or for certain background checks like employment or pre-qualification for a loan.

The presence of hard inquiries can cause a slight, usually temporary, dip in a credit score. For most individuals, a single hard inquiry might reduce a FICO Score by fewer than five points. While hard inquiries remain on a credit report for up to two years, their impact typically diminishes after 12 months. An exception exists for rate shopping, where multiple inquiries for the same type of loan (e.g., mortgage, auto, or student loan) within a short period (typically 14 to 45 days) are often counted as a single inquiry by credit scoring models.

Conditions Allowing Removal

Legitimate hard inquiries, authorized by the consumer during a credit application, cannot be removed from a credit report before their natural expiration. These inquiries serve as an accurate record of credit-seeking behavior and typically fall off the report after two years.

However, certain specific circumstances allow for legitimate removal. An inquiry can be disputed and removed if it is unauthorized, meaning it appeared on a report without the consumer’s permission or application. This often points to potential errors or identity theft.

Fraudulent inquiries, directly related to identity theft where an application was made in the consumer’s name without their knowledge, also qualify for removal. Obtaining a police report or an Identity Theft Report from the Federal Trade Commission (FTC) can provide crucial supporting documentation. Inquiries resulting from factual errors or duplicates, such as the same application generating multiple distinct inquiries outside the rate-shopping grace period, may also be challenged.

Steps to Dispute Hard Inquiries

Initiating a dispute for an unauthorized or erroneous hard inquiry involves a structured process. First, obtain copies of your credit reports from all three major credit bureaus: Equifax, Experian, and TransUnion. These can be accessed annually for free through AnnualCreditReport.com. Review each report to identify any unfamiliar or incorrect hard inquiries.

Next, gather relevant supporting documentation. This evidence is crucial for substantiating the dispute. Examples include a police report if identity theft is suspected, an official Identity Theft Report from the Federal Trade Commission, or any correspondence proving you did not authorize the inquiry or that it was made in error. When submitting documents, send copies and retain all original records for your files.

With documentation prepared, contact the credit bureau(s) where the inaccurate inquiry appears. Disputes can typically be filed online, by mail, or over the phone. When submitting the dispute, provide your full name, address, telephone number, specific inquiry details, and a clear explanation of why it is being disputed. Federal law requires credit bureaus to investigate disputes, and investigations typically conclude within 30 days.

It can also be beneficial to contact the creditor who made the inquiry. Explaining the situation directly might lead to a quicker resolution, as they can sometimes verify the error and inform the credit reporting agencies. After submitting a dispute, diligently follow up by monitoring your credit reports for updates. If a dispute is denied, you have the option to add a brief statement to your credit report explaining your perspective or to resubmit the dispute with additional supporting information.