Will Removing a Hard Inquiry Improve Your Credit Score?Jason Mikula learned the hard way how to remove inquiries from credit reports — after he had become a victim of identity theft.[*] The financial technology professional battled unrelenting identity thieves throughout 2021 after noticing two unauthorized hard inquiries on his credit report. Show
As Mikula worked with authorities to close fraudulent accounts and rebuild his creditworthiness, one thing became clear. It's far too easy for identity thieves to open new credit accounts in your name and tank your credit score. Victims grappling with the aftermath of identity theft have a long and grueling remediation process ahead of them. While removing inquiries doesn’t guarantee an improvement in your credit score, leaving suspicious credit pulls or errors undisputed on your report can be problematic. What is a hard inquiry on your credit report?A hard inquiry is recorded when someone requests to review your credit report as part of a credit application process. Also known as a hard credit check or hard pull, these requests from an authorized lender can shave up to five points off your FICO score.[*] While hard inquiries stay on your file for two years, their lingering effects on your credit score last for one year. You can find these checks on your credit report in the section called Hard Inquiries. How is it different from a soft credit check?Soft inquiries are made when you pull your own credit report or receive a pre-approved offer from a lender. These types of inquiries don't negatively impact your credit score. It's best to avoid too many hard credit inquiries in a short period. Prospective lenders may interpret this as a sign of making irresponsible credit applications or your inability to pay them back. What to know if you’re comparison shoppingIf you’re rate shopping for various types of credit accounts — the best credit card, personal finance options, or an auto loan — you might trigger a flurry of hard checks. Credit scoring models can, however, group similar credit checks and allow you to comparison-shop for the best interest rates. This rate shopping window varies from model to model:
3 Reasons Why There Are Hard Inquiries on Your Credit ReportThere are a few different reasons for a hard inquiry. Since not all inquiries may be legitimate, it’s critical to stay vigilant and flag anything that looks amiss. Checks from an authorized lenderAny authorized lender that reports information to the credit reporting agencies is also known as a data furnisher. Credit card companies, banks, loan companies, and even your landlord are examples. When you apply for a new line of credit, the furnisher will want to probe into your credit history first. Consequently, you'll have to give permission for the lender to access a copy of your credit report. For example, a credit check will be essential before you can pursue an auto loan application. Reporting errorsSometimes, the three major credit bureaus — Equifax, Experian, and TransUnion — make erroneous entries on your file. Common types of credit reporting errors include: Identity mismatches or mixed files
Account errors
Balance and data management errors
Potential identity theftIf you stumble upon an unfamiliar inquiry, it might be an honest mistake by a lender. However, it couldindicate fraud — so, always contact the data furnisher if in doubt. In the case of a bogus credit check, here are some quick actions you can take to prevent financial fraud: Place a fraud alert or credit freeze:
Report the identity theft to the Federal Trade Commission (FTC):
📚 Related: Fraud Alert vs. Credit Freeze: Which Can Protect You More? → How Do You Dispute (and Remove) Unauthorized Inquiries?If you think you’ve found reporting errors or fraudulent hard pulls, you should take action to protect your credit score and identity. Here’s how the credit inquiry removal process works. 1. Obtain free copies of your credit reportYou can order free credit reports once a year from each bureau. The three bureaus often record the same information. But sometimes, there are differences; so it's essential to check all three reports carefully for signs of identity theft. What to do:
2. Flag any inaccurate hard inquiriesSometimes the company that made the hard credit check is listed under different names on each credit report. Verify any unfamiliar activity to ensure that it’s not fraud. What to do:
📚 Related: LifeLock vs. Experian IdentityWorks vs. Aura: 2022 Showdown → 3. Contact the original lenderYou may be able to avoid a formal dispute over a hard inquiry by making direct contact with the furnisher (such as the credit card issuer or car dealership). What to do:
📚 Related: 14 New Ways Scammers Can Steal Your Credit Card Numbers → 4. Start an official disputeSometimes, your efforts to resolve the matter yourself may not succeed. If the furnisher doesn't know how to remove inquiries from credit reports — or ignores or rejects your request — you should file a formal dispute. What to do:
5. Include all essential informationWhen you write your dispute letter, make sure to include the following items:
Make sure to send copies of any supporting documents — but not the originals, as you won’t get them back. If you want to make this process easier, the FTC provides a dispute letter template. 6. Submit your disputeIt’s important to raise any questionable inquiries with the same bureau that lists them on your credit report. As mentioned, keeping track of the documentation is a good idea in case of a legal investigation. So, submitting your credit dispute online or in writing is the best approach. Dispute hard inquiry errors by phone:
Dispute hard inquiry errors online:
Send a dispute letter by certified mail:
7. Wait for a verdictAfter lodging your official dispute, the credit reporting agencies must resolve the matter within 30 to 45 days. The bureau will contact the furnisher to determine if the credit check was a mistake. Companies that provide information to credit reporting agencies have a duty to investigate disputes, in line with The Fair Credit Reporting Act.[*] If the bureau can't verify the inquiry, they will likely remove it from your credit report. However, the bureau may reject the claim if the furnisher asserts that the hard inquiry is a legitimate credit check. What to do:
📚 Related: Don't Fall For These Clever Credit Repair Scams → ✅ Take action: Aura’s $1,000,000 identity theft insurance covers lost wages, phone bills, and other expenses due to identity theft. Try Aura free for 14 days and see if it’s right for you. Not All Incorrect Inquiries Indicate Fraud. Aura Can HelpWhile not every unfamiliar credit check is fraudulent, even honest credit reporting mistakes can harm your credit score — which can then lead to your being denied a credit card, car loan, or student loan. Order your free credit report via AnnualCreditReport.com or by calling 1-877-322-8228. Remember, the free credit reports don't include your credit score — you may need to pay to get that information from one of the three bureaus. You can save a lot of time and hassle when you use an identity theft protection service that monitors your credit 24/7 for signs of fraud. With Aura, you’ll get:
For ironclad identity theft protection and credit monitoring, try Aura.Does removing hard inquiries increase credit score?Hard inquiries will depress your credit score for the first six to 12 months. If you have them removed before then, you may see a quick boost in your credit score. You may boost your creditworthiness. Too many inquiries in a short period of time can make you seem like more of a risk to lenders.
How long does it take to remove inquiries from credit report?How Long Do Inquiries Stay on Your Credit Report? Hard inquiries are taken off of your credit reports after two years. But your credit scores may only be affected for a year, and sometimes it might only be for a few months. Soft inquiries will only stay on your credit reports for 12-24 months.
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