How To Remove Hard Inquiries For Credit Reports
If you have checked your credit report, there’s a chance that you have noticed that someone else is pulling your information. Two types of inquiries can be made on your report, and they are hard inquiries and soft inquiries.?
The impact of an inquiry on your credit report depends on the type of inquiry made. Usually, a hard inquiry is the one to give you a headache. Because of this, you might be wondering how to remove hard inquiries for credit reports.
If this is your mission, then you are where you are supposed to be. This is because we will be teaching you everything about removing inquiries for credit reports. Take a seat as you are about to learn important information that can save your credit score.
What is a Hard Inquiry
A hard inquiry happens when you apply for a new line of credit. It can be a loan, mortgage, or credit card. When a hard inquiry is done on your credit, it involves the lender to check whether you are creditworthy. A hard inquiry can also be called a hard pull or a hard credit check.?
It is important to note that hard inquiries and soft inquiries are different. The difference is that the credit issuer does a hard inquiry on your report when you apply for a credit card, loan, or any other financing.
On the other hand, soft inquiries happen when you check your credit report or when lenders check your credit before sending you what is called a preapproval offer.
Another difference between soft and hard inquiries is that while soft inquiries do not affect your credit score, hard inquiries do. For every hard inquiry done on your report, rest assured that you’ll have a few points knocked off your credit score.
A solid warning to you also is that hard inquiries stay on your credit report for 24 months before they fall off naturally. If you have had legitimate hard inquiries, there’s nothing to do to get them off before the two-year wait window.
5 Important Reasons Why There are Hard Inquiries on Your Credit Report
It is important to know how to remove inquiries from a credit report as that would greatly help your financial health. However, knowing how these inquiries happen is also important, as it helps you prevent them from happening. Here are some of the most common causes of hard inquiries.
When you apply for a new credit card, there’s a high chance that the card issuer will make a hard inquiry on your credit report. The card issuer needs to know if you qualify for a new credit card. Moreover, with a hard inquiry, the financial institution will be able to access your credit history to determine the credit limit they’ll award you.
One case where you won’t get a hard inquiry is when you are applying for another credit card with the same financial institution. Situations like this will only lead to a soft inquiry, provided your account is in good standing.
When applying to rent an apartment or home, there’s a chance, albeit slim, that the rental agency or landlord would perform a hard inquiry on your credit report during the approval process. As you might have guessed, more often than not, a soft inquiry is usually enough.
However, if you have reasons to worry if the renting agency would be performing a hard inquiry, you can ask them before you submit your application.?
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In the same way as processing credit card applications, finance firms use hard inquiries to check a consumer's economic viability for home and auto loans. Interestingly, a cluster of applications made within a 14-day period to obtain better rates usually counts as a single inquiry, safeguarding the consumer from unwarranted penalties.
While uncommon, asking for a credit limit increase may lead to a hard inquiry on your credit report. Typically, lenders lean towards soft inquiries, evaluating your prior credit usage. Nevertheless, it's advisable to confirm with your institution before seeking more credit.
Beyond the mentioned home and auto loans, individuals can seek personal loans, and debt consolidation loans, among many other options. It is crucial to presume that any loan application could lead to a hard inquiry during the process unless explicitly stated otherwise.
Multiple Hard Inquiries Effect
You should avoid situations where a lender would make a hard inquiry on your report. This is because lenders view you as a risky debtor if you have many hard inquiries on your report. Why? Regularly seeking various forms of credit suggests potential financial instability, which, from a lender's perspective, translates to an increased level of risk.
However, despite the risk involved in having many hard inquiries on your account, there’s a way to avoid a hard inquiry counting against you every time. When you are out in the market looking to get a mortgage or auto loan, there’s a high chance that lenders will run multiple hard inquiries on your credit.?
These hard pulls won’t have a negative effect on your report if you apply for the loans within a 14-day period. This is because the credit scoring models will consider all the pulls as one inquiry.
Is It Advisable To Remove Hard Inquiries?
Before you start asking how to remove hard inquiries for credit reports, it is important you understand the impact of hard inquiries on your credit report is crucial for maintaining a healthy credit score. While the idea of removing them might be tempting, it's essential to differentiate between genuine inquiries and those resulting from fraudulent activities.
Disputing Genuine Hard Inquiries:
Disputing a legitimate hard inquiry is unlikely to boost your credit score. These inquiries, typically triggered when you apply for credit, have a temporary impact on your score. Although they stay on your report for two years, their effect diminishes after a few months. Lenders usually don't reject credit applications solely based on a few hard inquiries.
Dealing with Fraudulent Inquiries:
If you identify hard inquiries stemming from identity theft or fraud, disputing them is crucial. Fraudulent inquiries occur when someone uses your personal information to open accounts without your consent. In such cases, disputing and removing these inquiries becomes essential to protect your credit.
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Hard inquiries can indeed be taken off your credit history if they happened without your say-so. If you were caught off guard by the hard inquiries on your credit report, you have every right to ask for those inquiries to be removed. So, feel free to request the removal of a hard inquiry if:
Simple Steps on How To Remove Hard Inquiries For Credit Report if They Are Inaccurate
Keeping your credit reports accurate is vital for maintaining good financial health. Suppose an unrecognized hard inquiry—which could be a sign of identity theft—appears on your report. In that case, you can dispute and request its removal by contacting each of the three national credit reporting agencies.?
Here are the steps on how to dispute and remove inaccurate hard inquiries:
1. Review your credit report: Start by checking your credit report through one of the three credit report agencies' Dispute Center. Verify your information and confirm that the inquiry was not due to identity theft.
2. Recognize valid inquiries: There are instances when you might not recognize an inquiry, but it is legitimate. For instance, if you provided your Social Security number for a home repair quote, it may have been used to check your credit. Similarly, auto dealerships and mortgage brokers often send your details to multiple lenders for the best rates, which can also result in multiple inquiries. In addition, retail stores may use finance services companies for their cards, and inquiries could appear under unfamiliar company names.
3. Contact the company: If you need help to recognize the company that made the hard inquiry, contact them for more clarification. Your credit report from the Equifax, Experian, and TransUnion Dispute Center will typically list the company's name, mailing address, and phone number alongside the hard inquiry.
4. File a dispute: If you verify the hard inquiry was due to identity theft, contact the credit bureau specialists to handle the dispute. You can check available support options from the Dispute Center. This service is available free of charge. If you also want the dispute to be handled by professionals, you can reach out to professionals at GreatCreditFast to schedule a free consultation.
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5. Track progress and await results: After submitting your dispute, monitor its progress through the Dispute Center. Generally, the dispute process finishes within 30 days. If the inquiry is valid, it will stay on your credit report. However, if the investigation discloses it to be a result of identity theft, it will be eliminated from your report.?
Remember, regular credit report reviews are essential for ensuring your financial health and keeping your identity safe.
How To Send a Credit Inquiry Removal Letter
Sometimes, you might need to send a credit inquiry removal letter to have that hard inquiry erased from your credit report. Sending a credit inquiry removal letter involves reaching out to any credit reporting agency that displays the inquiry and the lender responsible for the credit inquiry. Here's a guide on how to do this:
1. Reach Out to the Lender First: Usually, it's essential to first notify the lender before sending a removal letter, notably if you're considering bringing the dispute to court. Send your credit inquiry removal letter to them via certified mail, which gives you evidence that they received your initial removal request.
2. Attach a Copy of Your Credit Report: To make your case easier for investigators, include a copy of your credit report spotlighting the unauthorized hard inquiries. While credit reporting agencies can easily access this information, a physical copy can be helpful.
3. Send it to the appropriate credit bureau: Make sure to send your letter to the correct credit bureau that records the hard inquiry you intend to eliminate. The addresses for each bureau are as follows:
Equifax
P.O. Box 740256???
Atlanta, GA 30374-0256??
???
Experian
P.O. Box 4500??
Allen, TX 75013??
???
TransUnion LLC?
Consumer Dispute Center??
P.O. Box 2000???
Chester, PA 19016??
Remember to monitor your credit report regularly. Spotting and disputing unauthorized credit inquiries can safeguard your credit health and protect you against potential identity theft.
Template for Writing a Credit Inquiry Removal Letter
Subject: Request for Removal of Unauthorized Credit Inquiries
Dear [Credit Bureau Name],
I trust this message finds you well. My name is [Your Name], and I am reaching out to address some concerns I have found on my credit report via your service—[Specify: Equifax, Experian, or TransUnion].
Upon reviewing my latest credit report, I have come across [number of hard inquiries you are disputing] hard inquiries that I did not instigate. As these unauthorized credit inquiries are hampering my potential for securing new credit, I must rectify this promptly.
Here are the specific inquiries in question:
Item No
Creditor
Account
Given the negative impact these unapproved inquiries have on my credit report, I kindly request their removal within the next 30 days. Once these changes have been made, I would appreciate a revised copy of my credit report for my confirmation and records.
Thank you in advance for your prompt attention to this matter. I look forward to a swift resolution.
My contact details are as follows for any required follow-ups:
- Full Name: [Your Name]
- Address: [Your Street Number, Street Name, City, State, ZIP code]
- Phone Number: [Your Phone Number]
- Social Security Number: [Your Social Security Number]
Wishing you all the best,
[Your Name]
Final Words
In conclusion, managing hard inquiries on your credit report is an essential part of maintaining your financial health. They're an inevitable part of securing credit, but frequent occurrences can convey risk to potential lenders. It's essential to regularly monitor your credit report to spot and dispute any fraudulent hard inquiries promptly.?
While legitimate hard inquiries are a part of the credit application process, unauthorized hard inquiries should be disputed immediately. Implementing the provided steps to dispute and remove hard inquiries, including using the provided credit inquiry removal letter template, will help you effectively manage hard inquiries on your report. Stay vigilant with your credit report to maintain a solid credit score and protect against potential identity theft.