Removing Credit Inquiries from Credit ReportApril 29, 2022
The Fair Isaac Corporation (FICO) mentions that credit inquiries are only 10% of your FICO score. However, a significant number of inquiries reduce your score by several points. It is important to have and maintain a good credit score to enjoy the benefits that come with it. Learn how to remove credit inquiries from your credit report and what credit inquiries are.
What are Credit Inquiries?
When you apply for a credit card or loan, the lender looks at your credit reports. They will determine whether to approve you for the account. The result is an inquiry on your credit report, which can temporarily tank your score.
Types of Credit Inquiry (Credit Pull)
There are two types of inquiries:
- Hard inquiry
- Soft Inquiry
Hard Inquiry (Hard Pull)
Hard inquiries occur when you take out new credit or loans, and these always affect your score. If there are too many inquiries on your report, it sends red flags to lenders as to why you are seeking so much credit. According to FICO, each hard inquiry knocks about five points off your score, although this amount varies depending on several factors, such as good credit history.
Soft Inquiry (Soft Pull)
Soft inquiries occur when someone checks your report without your knowledge, such as an employer conducting a background check. They could also be credit checks that you do on your own, and they don’t affect your score.
The impact of credit inquiries on your score doesn’t last forever. After two years, the effect drops off, while hard inquiries affect your score for only twelve months. However, if you’re struggling to repair your credit, waiting two years to see an improvement in your scores is no fun. Fortunately, there is a way to remove inquiries from your credit reports.
Why Do Lenders Use Hard Inquiries?
Lenders use hard inquiries to check if there is a loan that will impact credit repayment for a loan you are applying for. Credit lenders see you as a risk if you have over six inquiries on your credit report. They know you are more likely to declare bankruptcy than those with no inquiries.
How to Remove Credit Inquiries From Your Report
Can someone remove credit inquiries from their credit report? If you have several hard inquiries within a short period of time, it could be a sign to lenders that you’re having financial difficulties, and they may deny your application based on this.
Dispute Unauthorized Inquiries
According to the Fair Credit Reporting Act (FCRA), credit bureaus should inform consumers whenever there is a hard inquiry on their credit report. Creditors should inform by noting the inquiry in their credit files. This helps you note any inaccuracies in your credit report.
If you see any hard inquiries on your report that you didn’t authorize, dispute them with the three major bureaus. They are TransUnion, Experian, and Equifax. They’re required by law to investigate within 30 days of receiving a formal dispute request.
However, you’ll need to provide documentation of the circumstances surrounding the inquiry, such as an identity theft report or other documentation. When you submit your letter, make sure to provide your full name and address, your social security number, and a copy of some form of identification, such as your driver’s license. You should also include copies (not originals) of any supporting documents.
If it is a legitimate error on the creditor’s part, it shouldn’t be too difficult to resolve with proof. If someone has committed fraud using your identity, however, it may be harder to get everything resolved in a timely manner.
You can do nothing about inquiries that appear for legitimate reasons on your credit report. They are updated every 30 days by the creditors themselves.
Keep an Eye on Your Credit Report
You can only dispute a hard inquiry if you keep an eye on your credit score. When you regularly check your credit score, you will note any drop in your score since you can detect a drop in your score that you didn’t authorize.
Ensure you review what is listed and watch out for any suspicious activity, such as a bogus account that has gone unpaid.
The Bottom Line
Removing credit inquiries from your credit report requires you to work with the creditor and reporting agencies. Remember, you can only remove hard inquiries that you did not authorize. If you authorized any hard pull, you have to wait until they fall off naturally in two years.
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call today at 1-877-871-2400. Ascent Network helps consumers all over the United States and is available locally in Huntington Beach, CA, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Desert Hot Springs, Indian Wells, La Quinta, Indio, and Thousand Palms.