How to Remove Inquiries From Your Credit Report

Have too many inquiries and your credit score goes down. In this guide, learn how to remove them from your credit report.

One inquiry won't dent your credit score too much. But what happens if you accumulate more inquiries in your credit reports?

They can drag down your credit score, hindering lenders from being confident about offering you loans.

But that doesn't mean you can't do anything about it. In this guide, learn the different types of inquiries and steps to remove them from your credit reports.

How To Remove Hard Inquiries

Hard inquiries can stay on your credit reports for up to two years.^[1] Your potential creditors and lenders in the future can see these entries, too. This is how you remove them.

Get Your Credit Reports

First, you'll need to get the latest copies of your credit reports from the three credit bureaus: Experian, Equifax, and TransUnion.

It's a good thing you can request digital copies of your free credit reports from AnnualCreditReport.com.

Review Inquiries

It's time to recall all your credit card or loan applications. And the times you signed up for services and apps that require pulling your credit reports. Then watch out for the three items below.

• Unauthorized inquiries
  See inquiries you don't remember making? You should only get legitimate hard inquiries from creditors you've authorized to access your credit profile.

  Watch out for hard inquiries from credit card applications you didn't make or loans you didn't sign up for. Fraudulent credit activities and identity theft are rampant — adding negative items to your credit reports without you knowing.

• Outdated inquiries
  Review the dates of your inquiries and note those that are too old. Inquiries can stay on your credit report for as long as 2 years. After that, it should fall off your credit report.

• Inaccurate inquiries
  Sometimes, there's inaccurate information in your inquiry entries. Or there's a chance that a double entry of the same inquiry may occur. You can dispute these types of mistakes on your credit reports.

Verify Inquiries With Creditors

Before you dispute the credit bureaus, contact your creditors first. If the hard inquiry contains errors or results from fraudulent activities, you can request your creditors to remove it.

Attach a copy of your credit report to show the entry. You can also add supporting documents to verify your claims and hasten the removal of the inquiry on your credit report.

Send Dispute Letters To Credit Bureaus

Creditors won't remove the inquiries? You can dispute outdated, erroneous, or fraudulent inquiries to the credit bureaus.

Send your dispute letter to Equifax, Experian, and TransUnion. Make sure to add all supporting and necessary documents.

You can file disputes online by visiting the dedicated pages for dispute submissions:

• File a dispute with Equifax
  
• File a dispute with Experian
  
• File a dispute with TransUnion

If you opt to send your dispute letters by mail, you can send them to the following address of each credit bureau.

Consider Credit Monitoring Services

It may take up to 50 days to see results from your dispute letters. Credit bureaus have 30 days to investigate your dispute, and they get an additional 15 days if you send more supporting documents for your claim.^[5]

Credit bureaus have five business days to inform you of the results.

Once you get the results, consider signing up for a credit monitoring service like Credit Karma. That way, you can get real-time updates on any inquiry and prevent fraudulent activities that tarnish your credit.

Now that you know the steps, here are some points to remember about inquiries to your credit reports.

What is an Inquiry?

An inquiry is a request to check your credit profile. When you apply for a loan or credit card or sign up for a financial app or service, your creditor may perform a credit check to assess you.

Two types of inquiry can show up on your credit report: hard inquiry or soft inquiry. Only hard inquiries affect your credit scores.

Hard Inquiry vs. Soft Inquiry
A hard inquiry means creditors accessed your credit profile for loan-related decisions. This usually occurs when you apply for new credit cards, lines of credit, or loans.

Meanwhile, a soft inquiry means creditors accessed your credit profile for general information. This means your creditors pulled your credit for purposes unrelated to loans. Soft inquiries are only visible to you.

Why do I have hard inquiries on my credit report?

You may gain hard inquiries on your credit reports for several reasons, like:

• Credit card applications
  Most financial institutions perform hard inquiries when you apply for a new credit card — to assess your creditworthiness and ensure you can pay back what you owe.

• Home or auto loan
  Applying for a mortgage or auto loan triggers a hard inquiry. If you shop around for favorable rates, all inquiries made within 14–45 days of each other are counted as one inquiry.^[7]

• Credit limit increase
  You can ask your bank or credit card issuer for a credit limit increase. Some may perform a hard inquiry before granting your new limit, while others will only do a soft credit check.

• Credit check for employment
  Due to the nature of the job, some positions require a credit check to assess past financial mismanagement and excessive debt. Some use your credit reports to verify information.

• Identity theft
  Unauthorized credit inquiries can result from fraud. Individuals may use your information to apply for new loans or new credit cards without your knowledge. Stay vigilant!

Does Removing Inquiries Increase Your Credit Score?

Yes, removing inquiries can increase your credit score. Each hard inquiry can knock off up to 10 points from your credit score.

That's why it is strongly recommended not to simultaneously apply for loans, credit lines, and credit cards.

How Many Hard Inquiries Are Ok?

The impact of hard inquiries depends on the lenders or creditors. The rule of thumb is that 6 inquiries in your credit report at one given time can impact your application for loans and credit cards.

These inquiries can stay on your credit reports for up to 2 years.

How to Prevent Unauthorized Hard Inquiries

Unauthorized hard inquiries impact your credit score and financial health. But you can avoid these circumstances from happening with some proactive measures.

• Review your credit reports regularly
  Routinely check your credit reports to uncover any new inquiries. You won't be aware of new changes unless you actively monitor your credit reports.

• Monitor your credit score
  Hard credit inquiries can drop your score by up to 10 points. If this happens, review your credit reports or alerts to spot any new inquiries impacting your credit score.

• Use credit monitoring apps
  Credit monitoring apps, such as LifeLock, Privacy Guard, and ID Watchdog, can help you keep track of your recent credit changes. It may be worthwhile to have one!

• Place a credit freeze
  Request a credit freeze from the three credit bureaus to block access to your credit reports. This stops creditors, lenders, and unauthorized individuals from making inquiries until you lift the freeze. Don't forget to freeze all your credit reports.

• Be vigilant with your personal information
  Scams and identity theft are rampant and add unknown inquiries to your credit, greatly impacting your credit score. Be cautious when sharing information.

Tips For Improving Your Credit Score

Sometimes, it may make more sense to build a better credit history before applying for new loans and credit cards. This can show creditors and lenders your ability to pay back what you owe.

Here are some good practices you can apply:

• Pay on time
  If you have other loans and debts, pay them on time! This way, you avoid getting late payments and having them sent to collections. Potential lenders will see that you can afford the loan you are applying for.

• Use credit builders
  Credit builders and credit builder loans can help build many positive items in your credit report. Some credit builders cost around $10/month.

• Dispute other negative items
  If other inaccurate items (apart from fraudulent inquiries) continue to affect your credit score, you need to dispute these items. Several companies have decades of experience handling creditors and credit bureaus to remove these items.

Bottom Line

Inquiries can negatively affect your credit, especially erroneous ones or those made in your name without your knowledge.

Try disputing with your creditors first to remove the inquiries. If unsuccessful, you can escalate the dispute to the credit bureaus.

Ideally, you only have a few inquiries in your credit reports. This shows potential creditors that you aren't applying for many credit cards, loans, and credit lines at the same time.

References