How to Remove Hard Inquiries on Your Credit Report
Learn how to manage and remove hard inquiries on your credit report. Improve your credit score by addressing these entries effectively.
Hard inquiries on a credit report can cause a temporary dip in a credit score. While these inquiries are a standard part of applying for new credit, understanding their nature and impact is key to managing them. This article guides you through identifying eligible hard inquiries for removal, the steps to dispute them, and strategies to prevent future accumulation.
Understanding Hard Inquiries on Your Credit Report
A hard inquiry, also known as a “hard pull,” occurs when a lender or creditor checks your credit report to make a lending decision. This happens when you apply for new credit, such as a mortgage, auto loan, or credit card. Unlike soft inquiries, which occur when you check your own credit or a lender pre-screens you, hard inquiries are associated with a formal credit application and are visible to other lenders.
A hard inquiry signals to potential lenders that you are seeking new credit, leading to a small, temporary reduction in your credit score. Most credit scoring models view multiple hard inquiries in a short period as a higher risk. These inquiries remain on your credit report for up to two years, though their impact on your credit score diminishes significantly after 12 months.
Identifying Hard Inquiries Eligible for Removal
Before attempting to remove hard inquiries, obtain and review your credit reports from Equifax, Experian, and TransUnion. You can get one free copy from each bureau every 12 months at AnnualCreditReport.com. Examine the section detailing credit inquiries, often labeled “Hard inquiries” or “Requests viewed by others.”
An inquiry is eligible for removal if it is unauthorized or inaccurate. An unauthorized inquiry is made without your permission, often indicating identity theft or a creditor error. For example, an inquiry from an unfamiliar company could be fraudulent. Inaccurate inquiries might have correct information but an incorrect date or creditor name.
Legitimate inquiries, which you authorized, cannot be removed from your credit report. While hard inquiries remain on your report for about two years, their age alone does not make them eligible for removal unless they are unauthorized or inaccurate. Legitimate inquiries will naturally fall off your report after their two-year reporting period.
The Process of Disputing Hard Inquiries
Once you identify an unauthorized or inaccurate hard inquiry, dispute it with the relevant credit bureau. You can initiate a dispute online, by mail, or by phone. Each of the three major credit bureaus—Equifax, Experian, and TransUnion—provides a specific process for submitting disputes.
When disputing, clearly state the hard inquiry was unauthorized or inaccurate. Include details like the inquiry date, creditor name, and reason for your dispute. Providing supporting documentation, such as a police report for identity theft or a fraud affidavit, can strengthen your claim. Sending a dispute letter via certified mail with a return receipt provides proof of submission.
Under the Fair Credit Reporting Act (FCRA), credit reporting agencies are required to investigate your dispute within 30 days of receiving it. This timeframe can extend to 45 days if you provide additional information during the investigation or if you accessed your report through AnnualCreditReport.com. The bureau will notify you of the investigation’s results, typically within five business days of its conclusion. If the inquiry is found to be unauthorized or inaccurate, it should be removed from your report.
Strategies to Limit Future Hard Inquiries
To proactively manage and limit future hard inquiries, consider strategic approaches when seeking new credit. When shopping for installment loans such as mortgages, auto loans, or student loans, credit scoring models often treat multiple inquiries within a specific timeframe as a single inquiry. This “rate shopping” window generally ranges from 14 to 45 days. By consolidating your loan applications within this window, you can minimize the impact of multiple inquiries on your credit score.
Avoid applying for numerous lines of credit simultaneously unless necessary. Each application for a new credit card or other revolving credit can result in a separate hard inquiry, which can collectively lower your score more significantly than inquiries for installment loans. Before consenting to a credit check, ensure you understand why your credit is being pulled and whether it will result in a hard inquiry. Regularly monitoring your credit reports can help you quickly identify any unauthorized inquiries, allowing you to dispute them promptly.