How to Remove Hard Inquiries From Your Credit Score

A hard inquiry occurs when a lender or creditor checks your credit report after you apply for new credit, such as a loan or a credit card. This action helps them assess your creditworthiness before making a lending decision. While a single hard inquiry typically has a minor effect on your credit score, its presence indicates a recent application for credit, which can be viewed as a higher risk by other potential lenders. This article provides guidance on addressing hard inquiries on your credit report.

Understanding Hard Inquiries

Hard inquiries record a credit application, showing a financial institution accessed your credit file to evaluate your suitability for new credit. When you apply for a mortgage, an auto loan, or a new credit card, the prospective lender performs a hard inquiry. This type of inquiry is distinct from a soft inquiry, which happens when you check your own credit score or when a lender pre-approves you for an offer without a formal application.

Soft inquiries do not impact your credit score. In contrast, a hard inquiry can cause a small, temporary dip in your credit score, often by a few points. The impact of a hard inquiry usually diminishes over time, remaining on your credit report for up to two years, though its influence on your score significantly lessens after the first year. Multiple hard inquiries within a short period, especially for different types of credit, can signal a higher risk to lenders, potentially leading to a more noticeable reduction in your credit score.

When Removal is Possible

Removing a hard inquiry from your credit report is possible only under specific circumstances. An inquiry can be removed if it is unauthorized, meaning it appeared on your report without your permission or a corresponding application. This includes situations where an inquiry is the result of identity theft, where someone else applied for credit in your name without your knowledge.

Removal is also an option if the inquiry is an error, such as a duplicate entry for the same application or an inquiry incorrectly placed on your report due to mismatched personal information. For instance, if an inquiry appears under your name but belongs to someone with a similar identity, it constitutes an error.

Gathering Information for a Dispute

Before initiating any dispute, collect all relevant information and documentation concerning the hard inquiry. Begin by identifying the precise hard inquiry or inquiries on your credit report, noting the exact date of the inquiry and the name of the creditor who made it. You can obtain this detail by reviewing your credit reports from Equifax, Experian, and TransUnion.

If the inquiry is unauthorized or fraudulent, gathering substantiating evidence is important. This may include a copy of a police report filed for identity theft, an Identity Theft Affidavit filed with the Federal Trade Commission (FTC), or any correspondence demonstrating you did not apply for credit with the stated creditor. You will also need to provide personal identifying information for verification, such as your full name, current and previous addresses, Social Security Number, and date of birth.

Disputing with Credit Bureaus

Once you have gathered all necessary information, you can initiate a dispute directly with the credit bureaus. Equifax, Experian, and TransUnion provide online dispute portals, as well as options for disputing by mail. When using the online portal, you will need to create an account and follow the prompts to identify the specific inquiry you wish to dispute.

When submitting your dispute, clearly state the reason, such as “unauthorized inquiry” or “identity theft.” Attach all supporting documentation you previously gathered, as this evidence helps the credit bureau investigate your claim. Under the Fair Credit Reporting Act (FCRA), credit bureaus are required to investigate disputes within 30 days. This period can extend to 45 days if you provide additional information during the investigation. Following the investigation, the credit bureau will notify you of the outcome, indicating whether the inquiry will be removed from your report.

Disputing with the Original Creditor

In addition to disputing with credit bureaus, you can also directly contact the original creditor who made the unauthorized or erroneous inquiry. Locating the creditor’s contact information, found on your credit report alongside the inquiry or through an online search, is the first step. You can communicate with the creditor via a written letter, which provides a clear paper trail, or by phone.

When contacting the creditor, clearly explain that you are disputing an inquiry you believe is unauthorized or an error. Provide them with the specific details of the inquiry, including the date and your personal identifying information for verification. The creditor may investigate the matter internally and, if they confirm the inquiry was made in error or without authorization, they can directly remove it from your credit report or notify the credit bureaus to do so. This direct approach can lead to a quicker resolution, especially if the creditor is responsive and acknowledges the mistake.