How to Remove Hard Inquiries From Your Credit Report

A hard inquiry is a formal record created on a credit report when a lender or creditor reviews an individual’s credit history as part of an application for new credit or a loan. This process allows financial institutions to evaluate a potential borrower’s creditworthiness and assess the risk associated with extending new credit. It serves as a necessary step for lenders to gain insight into an applicant’s past financial behavior. The inquiry’s purpose is to provide a snapshot of an individual’s financial responsibility, which is a common part of applying for various forms of credit.

Understanding Hard Inquiries and Their Duration

Hard inquiries typically appear on a credit report following an application for new credit, such as a mortgage, an auto loan, a personal loan, or a new credit card. When an individual seeks new financing, the prospective lender requests access to their credit report to determine eligibility and set terms. This action results in a hard inquiry being noted on the credit report.

These inquiries remain on an individual’s credit report for up to two years from the date they were made. After this two-year period, hard inquiries automatically fall off the credit report. While visible for this duration, their influence on credit scores often diminishes after 12 months. The presence of hard inquiries provides a historical timeline of when new credit applications were submitted.

Identifying Inquiries Eligible for Removal

Only specific types of hard inquiries can be removed from a credit report. An inquiry is eligible for removal if it is inaccurate, fraudulent, or was made without proper authorization. This includes situations where an inquiry resulted from identity theft, where an unauthorized application was made using an individual’s information, or if a lender accessed the credit report without explicit permission or a valid reason.

For example, if an individual’s personal identifying information, such as their Social Security number, was compromised and used to apply for credit, any resulting hard inquiry could be disputed as fraudulent. Similarly, if a company pulled a credit report mistakenly or without an application being submitted, that inquiry would be considered unauthorized. Legitimate hard inquiries, those made when an individual knowingly applied for credit and authorized the check, cannot be removed from a credit report before their natural expiration.

Preparing to Dispute Inaccurate Inquiries

Before initiating a dispute for an inaccurate hard inquiry, gathering all necessary information and documentation is an important preliminary step. The first action involves obtaining copies of credit reports from the three major credit bureaus: Equifax, Experian, and TransUnion. Individuals are legally entitled to a free copy of their credit report from each of these bureaus once every 12 months through AnnualCreditReport.com. This centralized website is the official source for these free reports.

Once the reports are obtained, carefully identify each specific inaccurate inquiry, noting the exact date of the inquiry, the name of the creditor, and any associated account numbers. Collecting supporting documentation that substantiates the claim of inaccuracy or unauthorized access is also crucial. This documentation might include a police report if identity theft is suspected, a fraud affidavit, written correspondence with the lender indicating no application was made, or evidence of mistaken identity.

The Inquiry Dispute Process

After preparing all necessary documentation, formally submit the dispute for the inaccurate hard inquiry. Individuals have the option to dispute directly with each of the three major credit bureaus: Equifax, Experian, and TransUnion. This can be done through their online dispute portals, by mail, or over the phone. When using online portals, individuals will input the identified inaccurate inquiry details and upload the supporting documents gathered during the preparation phase. For mail disputes, it is advisable to send copies of documents and keep all originals, often using certified mail for tracking.

Individuals can also contact the original creditor who made the inquiry. Resolving the issue directly with the creditor can lead to a quicker resolution, especially if it was a simple error. If the creditor confirms the inquiry was unauthorized or erroneous, they can be asked to notify the credit bureaus to remove it. After a dispute is submitted, credit bureaus typically have a timeframe of 30 to 45 days to investigate the claim. The bureaus will notify the individual of their findings, which may result in the inquiry being removed from the credit report or verified as legitimate.