How to Delete Inquiries From Your Credit Report
Unlock insights into credit report inquiries. Understand their nature, impact, and how to effectively manage or dispute certain entries for better credit health.
A credit inquiry is a formal request to review your credit report, appearing as a record of access to your credit information. Understanding these inquiries is important for managing your financial standing, as they can influence perceptions of your creditworthiness.
Types of Credit Inquiries
Credit inquiries fall into two categories: hard inquiries and soft inquiries. A hard inquiry occurs when a lender or creditor accesses your credit report as part of a credit application process. This happens when you apply for new credit, such as a mortgage, auto loan, personal loan, or a new credit card. Hard inquiries can temporarily lower your credit score by a few points and remain on your credit report for up to two years. However, their impact on your credit score typically lessens after 12 months.
Soft inquiries occur when your credit report is accessed for informational purposes, not in connection with a specific credit application. Examples include checking your own credit score or report, pre-approvals for credit offers, or background checks by employers or insurance companies. While soft inquiries may appear on your credit report, they do not impact your credit score. Only unauthorized or inaccurate hard inquiries are eligible for dispute and potential removal from your credit report.
Reviewing Your Credit Report for Inquiries
Review your credit reports thoroughly. You are legally entitled to one free copy of your credit report every 12 months from each of the three major nationwide credit reporting agencies: Equifax, Experian, and TransUnion. These reports can be accessed at AnnualCreditReport.com, the only website authorized by federal law to provide these free reports. It is advisable to obtain reports from all three bureaus, as information may vary among them.
Locate the section detailing credit inquiries. This section typically lists the date of the inquiry, the name of the creditor or entity that made the inquiry, and sometimes the type of inquiry. Verify the legitimacy and accuracy of each listed inquiry. Pay close attention to any hard inquiries you do not recognize or for which you did not authorize a credit application.
Disputing Unauthorized or Inaccurate Inquiries
If you identify a hard inquiry on your credit report that is unauthorized or inaccurate, you have the right to dispute it. This process focuses on hard inquiries you did not initiate, such as those resulting from identity theft or clerical errors. You can initiate a dispute directly with the credit bureau online, by mail, or by phone.
When filing a dispute, provide your full name, address, Social Security number, and the specific inquiry you are disputing. Include supporting documentation that substantiates your claim, such as proof you were not at the business location on the date of inquiry or evidence of identity theft. The credit bureau is required by the Fair Credit Reporting Act (FCRA) to investigate your dispute within 30 days of receiving it. If the investigation concludes that the inquiry is unauthorized or inaccurate, it will be removed from your credit report.
Managing the Impact of Valid Inquiries
Valid hard inquiries and all soft inquiries will remain on your credit report.
To mitigate the impact of valid inquiries, maintain responsible credit habits, including making all payments on time and keeping credit utilization low. When shopping for loans, such as mortgages, auto loans, or student loans, multiple inquiries made within a short “rate shopping” period (14 to 45 days) are often counted as a single inquiry for scoring purposes. This allows you to compare interest rates without multiple hits to your score. A single hard inquiry has a minimal impact, often reducing a FICO Score by fewer than five points. The negative effect of inquiries is minor compared to factors like payment history and credit utilization.