How to Get Rid of Hard Inquiries on Your Credit

Hard inquiries on your credit report can influence your credit score, making it important to understand their presence and impact. These inquiries occur when you apply for new credit, signaling to lenders that you are seeking additional debt. Addressing existing hard inquiries and implementing practices to limit future ones can contribute to maintaining a healthy credit profile. This article provides guidance on identifying hard inquiries for potential removal and strategies to prevent an excessive number from appearing on your report.

Identifying Hard Inquiries for Removal

A hard inquiry is recorded on your credit report each time a lender or company accesses your credit information as part of a credit application process. Hard inquiries remain on your credit report for up to two years, though their impact on your credit score usually diminishes after one year.

It is important to distinguish between legitimate hard inquiries and those that may be erroneous or unauthorized, as only the latter can be disputed for removal. An inquiry is legitimate if you authorized the credit application, even if you did not ultimately open the account. However, an inquiry might be erroneous if it results from identity theft, was made without your explicit permission, or if duplicate inquiries appear for the same application within a short timeframe.

To identify removable inquiries, you should regularly review your credit reports from the three major credit bureaus: Equifax, Experian, and TransUnion. Federal law entitles you to a free copy of your credit report from each bureau annually through AnnualCreditReport.com. Examine the inquiries section for any unfamiliar entries, such as those from lenders you do not recognize or for credit you did not apply for.

Steps to Dispute Erroneous Hard Inquiries

Once you identify an erroneous hard inquiry, gathering documentation is the first step before initiating a dispute. You should prepare copies of your credit reports with the disputed items, along with supporting evidence. This evidence might include bank statements, utility bills, or letters from lenders correcting account information. For identity theft cases, a police report or a Federal Trade Commission (FTC) Identity Theft Report is important to include.

The next step involves disputing the inquiry directly with the credit bureaus. Each of the three credit bureaus offers online, mail, and phone options for submitting disputes. When disputing by mail, send copies of your documents, not originals, and retain your own copies. The Fair Credit Reporting Act (FCRA) requires credit bureaus to investigate disputes within 30 to 45 days of receiving them.

If the inquiry was unauthorized or made in error, you can also contact the lender directly to request its removal. The lender’s contact information is listed alongside the inquiry on your credit report. If the lender confirms the error, they should notify the credit bureaus to correct or remove the inquiry. After the bureau completes its investigation, they must notify you of the results within five business days. If you disagree with the outcome, you have the right to add a brief statement to your credit report explaining your position.

Strategies to Avoid New Hard Inquiries

Preventing hard inquiries helps manage your credit health. When shopping for certain types of loans, such as mortgages, auto loans, or student loans, credit scoring models like FICO and VantageScore treat multiple inquiries within a specific timeframe as a single inquiry. This “rate shopping” window can range from 14 to 45 days, depending on the scoring model used. This allows consumers to compare offers without multiple inquiries negatively impacting their score, but it does not apply to credit card applications.

Before applying for new credit, consider utilizing pre-qualification or pre-approval processes offered by lenders. These involve a “soft inquiry,” which does not affect your credit score and allows you to gauge your eligibility and potential terms. This helps you avoid hard inquiries from applications you are unlikely to be approved for. Apply for credit only when genuinely needed and space out applications for different types of credit.

Regularly monitoring your credit reports from all three bureaus helps catch any unauthorized or erroneous inquiries quickly. Prompt identification allows for timely action to dispute and remove such entries. Being vigilant about your credit report activity helps ensure its accuracy and supports your overall financial well-being.