How To Remove Hard Inquiries From Your Credit Report
Hard credit inquiries—also known as hard pulls—can impact your credit negatively. Below, we break down everything you need to know about credit inquiries, including how you can remove them from your credit report and work to improve your credit.
What Causes An Inquiry?
When you apply for a credit account like a credit card, auto loan, or personal loan, you have probably generated a credit inquiry—a record of a bank, lender, or creditor requesting your credit file before extending credit.
The main reason creditors and lenders check your credit history is to determine your financial risk and if you're likely to pay a loan back on time and in full.
For example, if you have multiple inquiries on your credit report, this could signal to lenders that you're facing financial difficulties and in need of credit—especially if you're already carrying a large credit balance or have other relevant factors. This isn't always true, though, because multiple hard inquiries could also just mean that you're shopping around for the best interest rate.
There are other occasions in which you can end up with a credit inquiry, including:
- When a landlord or property manager checks your credit toward approving your apartment lease or deciding whether to require a deposit (and how much it will be)
- When a cell phone carrier decides whether it will approve you for a contract
- When a potential employer checks your credit to check your reliability before extending a job offer
If you cosign on another person's loan or application, a credit inquiry will be made on your account as well, since you're essentially promising to pay off the loan if the borrower defaults. The information and credit account will show up on your credit report, so be sure to only cosign for a financially responsible and trusted family member or friend.
While there isn't an exact number of inquiries that's considered too many, it's best to keep your credit applications to a minimum or shop around in a short period of time, since multiple inquiries in a 2-week time frame count as one inquiry.
Types Of Inquiries
Hard inquiry: A hard inquiry (also called a hard pull) may occur when someone other than you looks up your credit history from one of the three major bureaus (Experian, Equifax, and TransUnion). You must give permission for a hard inquiry by applying for an account or authorizing the inquiry. The purpose of this inquiry is generally to allow the lender or creditor to determine if you'll be a reliable borrower and repay your loan in full.
Creditors and lenders that authorize hard inquiries include:
- Auto financing companies
- Business and personal lenders
- Credit card companies
- Mortgage companies
- Student loan companies
They'll generally look into different components of your credit history, such as:
- How much credit you have
- The types of credit (credit cards, auto loans, mortgages)
- The number of accounts you've recently opened
- Recent credit inquiries
- The time since past credit inquiries
Additionally, they'll review your on-time payment history, any accounts that have gone into collections, and any judgments or bankruptcies.
(For more information on your credit score, read our comprehensive guide.)
This inquiry may take up to 2 years to fall off your credit report, but a single inquiry probably won't damage your credit enough to affect your credit eligibility.
Soft inquiry: A soft credit pull is usually done for a marketing or promotional purpose or for something like an employment background check—not just for loans and credit approvals—and allows the creditor to have a limited view of your credit report.
Instances in which a creditor may authorize a soft pull include:
- Matching borrowers with a potential lender through a lending platform
- Credit card companies offering preapproval for a loan or a line of credit increase
- Credit card companies sending promotional materials for consumers who meet a certain credit requirement
- Potential employers checking your background during the hiring process
- A landlord or property manager checking your credit history for an apartment rental
- Banks, credit unions, and financial institutions verifying your identity
- Car rental companies checking your history before rental
- Phone, internet, and utility companies checking your background as a new customer
Soft inquiries are recorded on your credit report, but they aren't seen in a negative light and don't impact your credit score. Unlike a hard inquiry, a soft inquiry doesn't require your permission.
When To Dispute An Inquiry
Hard inquiries generally remain on your credit report for up to 24 months before they fall off, although the impact to your credit score lessens over time. However, if you find any unauthorized hard inquiries on your credit reports, you can file a dispute with the credit bureaus and request that they remove the inquiry. You can typically acquire your credit reports for free once a year (or more often during periods of economic uncertainty) at AnnualCreditReport.com.
You can dispute a hard inquiry under the following circumstances:
- You didn’t approve the inquiry (including inquiries that were a result of fraudulent activity).
- The information is outdated and should no longer be showing up on your credit report.
- You were pressured or coerced into allowing the inquiry.
- You suspect the inquiry is related to identity theft.
How To File A Dispute
In order to file a dispute, you need to contact the credit bureau(s) and contest the item(s) by stating the reason. (For more information, read our Comprehensive Guide To Credit Repair.
In the dispute letter, include the name of the entity that made the inquiry and the date the inquiry was made. Be sure to include a copy of your credit report and mark the item you're disputing. The credit bureaus are required to conduct an investigation and remove any incorrect or outdated inquiries from your credit report.
Some bureaus may allow disputes to be initiated online via a web form or by phone.
Alternatively, you can save time by hiring a credit repair service to do the work on your behalf. Be aware, however, that some may make promises they can't keep, and they can't do anything you couldn't do yourself for free. Scams are also prevalent among these companies, so check with the Better Business Bureau before committing to anything.
Is it important to remove unauthorized inquiries?
One reason for unauthorized inquiries on your account could be actual or attempted identity theft. Contact the credit bureau for the steps to follow if you suspect you're a victim of identity theft, or visit IdentityTheft.gov to file a report and get information on additional actions to take.
Credit Score Criteria
FICO® generally breaks down your score with the following criteria:
- Payment history: 35%
- Amounts owed: 30%
- Length of credit history: 15%
- New credit (which includes inquiries or requests for new credit in the last year): 10%
- Credit mix: 10%
The composite score isn't the only thing a potential creditor looks at, and inquiries are also listed individually on your credit report. However, the inquiries themselves typically remain on your reports for 2 years.
As you can see, removing a hard inquiry isn't the biggest factor in improving your credit, but it can boost your score by a few points.
Prevent Unauthorized Credit Inquiries
One way you can prevent any unauthorized inquiries or fraudulent activity is to request a credit freeze.
A credit freeze (or security freeze) puts a lock on your credit report and makes it impossible for creditors and lenders to view your credit profile. This can also protect you from fraud and identity theft.
(Note: During a credit freeze, you won't be able to apply for loans or open new credit. If you need to do so, you can lift the credit freeze temporarily or permanently with each of the three major bureaus separately.)
You may also want to look into credit monitoring to help watch for suspicious activities that could be attempts at identity theft.
The Bottom Line
While hard inquiries don't have a significant impact on your credit score, removing an unauthorized inquiry can help ensure the accuracy of your credit report. Additionally, monitoring for unauthorized hard inquiries can help you protect yourself from fraud and identity theft.
Not sure where to start? Look to our reputable credit repair services here.
Can I remove hard inquiries from my credit report?
Yes, but only if you didn't authorize the inquiries. Realize, too, that not all disputes will result in removal of an inquiry.
How long will it take for inquiries to be removed from my credit report?
A hard credit inquiry generally stays on your credit report for 2 years, but it will typically only have a negative impact on your credit score in the first year. Credit bureaus usually have 30 days to investigate a dispute and remove any inaccurate or unverified information.
How much does a credit inquiry impact my credit score?
New credit accounts and credit inquiries make up 10 percent of your FICO® score, which usually will affect it a few points.
Why do hard inquiries hurt your credit?
Hard inquiries may signal to lenders that you're looking for additional credit and are therefore a higher credit risk. A single inquiry alone won't significantly harm your credit report, but multiple hard inquiries in a short period of time (along with other factors) may raise red flags with potential creditors.
About The Author
Edited by:
Lisa Koosis
•
Finance Expert
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How To Remove Hard Inquiries From Your Credit Report
