How to Remove Hard Inquiries From Your Credit Report

Hard inquiries on a credit report can cause concern for consumers, as they are often associated with changes to one’s credit score. Understanding these inquiries and how to address them is important for maintaining financial health. This article guides readers through identifying, disputing, and managing hard inquiries that appear on credit reports.

Understanding Hard Inquiries

A hard inquiry, also known as a “hard pull” or “hard credit check,” occurs when a lender or creditor checks a consumer’s credit report after a credit application has been submitted. This happens for various types of credit, such as loans, credit cards, or mortgages. These inquiries appear on a credit report and serve as a record of when new credit has been sought.

It is a normal part of applying for new credit and indicates to potential lenders that an individual is seeking additional credit.

Identifying Removable Hard Inquiries

Only hard inquiries that are inaccurate, unauthorized, or fraudulent can be removed from a credit report. If an inquiry resulted from identity theft, was made without the consumer’s explicit permission, or occurred due to a clerical error, it may be eligible for removal. For instance, if someone applies for credit in your name, the resulting inquiry is unauthorized and can be disputed.

Legitimate hard inquiries, which arise from valid credit applications, cannot be removed from a credit report. These inquiries are accurate reflections of credit-seeking activity. Attempting to dispute a legitimate inquiry is unlikely to succeed and may be considered frivolous by the credit bureaus.

Preparing to Dispute Inaccurate Inquiries

Before initiating a dispute, obtain copies of your credit reports from all three major credit bureaus: Equifax, Experian, and TransUnion. Consumers are legally entitled to a free copy of their credit report from each bureau once every 12 months through AnnualCreditReport.com. Reviewing these reports allows for the identification of any specific hard inquiries that appear inaccurate or unauthorized.

Once an inaccurate inquiry is identified, gather all supporting documentation to strengthen the dispute. This includes the date of the inquiry and the name of the inquiring entity, both found on the credit report. Evidence proving the inquiry is inaccurate, such as a police report for identity theft, documentation showing no application was made, or proof of a clerical error, should also be collected. Contacting the company that made the inquiry to verify its legitimacy before disputing with the credit bureaus may be helpful.

Disputing Inaccurate Hard Inquiries

After gathering all necessary documentation, formally dispute the inaccurate hard inquiry with each relevant credit bureau. Consumers can typically file a dispute online, by mail, or by phone. For disputes sent by mail, use certified mail to ensure proof of submission.

When submitting the dispute, clearly explain why the inquiry is believed to be inaccurate and include copies of all supporting documents. The credit bureaus are generally required to investigate disputes within 30 days of receipt, though this period can extend to 45 days if additional information is submitted during the investigation. If the investigation determines the inquiry was unauthorized, it will be removed from the credit report.

Managing Legitimate Hard Inquiries

Legitimate hard inquiries, which result from valid credit applications, will remain on a credit report for up to two years. They can cause a small, temporary dip in credit scores, typically reducing a FICO Score by fewer than five points. Their effect on FICO Scores usually lasts for only 12 months.

To minimize the impact of future inquiries, consumers can strategically manage their credit applications. For specific types of loans, such as mortgages, auto loans, or student loans, multiple inquiries within a short period are often treated as a single inquiry for scoring purposes. This “rate shopping” window can range from 14 to 45 days, depending on the credit scoring model used. Applying for credit only when genuinely necessary and understanding these rules can help maintain a healthy credit profile.