How to remove inquiries from your credit report
How to remove inquiries from your credit report
If you notice a sudden decrease in your credit score for seemingly no reason, you may be seeing the effect of an unwarranted credit inquiry. Luckily, the credit bureau will sometimes remove these unapproved inquiries from your report. Continue reading to learn more about credit inquiries, how they affect your credit score and how to work to remove them from your credit report.
Table of contents:
- What is a credit inquiry?
- What is the difference between hard and soft inquiries?
- How do hard inquiries affect your credit score?
- 3 reasons why there are hard inquiries on your credit report
- How to write a credit inquiry removal letter
- Sample credit inquiry removal letter
- Will removing a hard inquiry improve your credit score?
- How to stay on top of your credit report
What is a credit inquiry?
Credit inquiries are a deep dive into your full credit history. Lenders use the information in your credit file, such as the age of your credit and the history of your payments, to determine if they will give you a new line of credit.
What is the difference between hard and soft inquiries?
There are two types of credit inquiries— hard inquiries and soft inquiries— and each will appear for different reasons. The purpose of both types of inquiries is to check your credit history, but there are a few key differences to consider.
Hard credit inquiry:
- Occurs when you apply to open a new line of credit
- Can lower your credit score
- Needs your approval
Soft credit inquiry:
- Often occurs during a background check or pre-approval
- Does not affect credit score
- Can occur without your approval
How do hard inquiries affect your credit score?
Hard inquiries can negatively affect your credit score. The exact effect on your credit score will depend on your current credit standing and how much credit history you have. According to FICO®, most people see their credit score decrease by five points or less for each hard inquiry.
The impact of the inquiry lessens over time and, according to Equifax®, will typically stop affecting your score after 12 months. However, too many hard inquiries in a short period will have a much greater negative impact on your credit score. Try to space out your hard inquiries if you can.
3 reasons why there are hard inquiries on your credit report
If you see a hard inquiry on your credit report , there are a few possible reasons why it’s there.
1. You applied for a credit card, mortgage or car loan
The most common reason for a hard inquiry is because you applied for a credit card, mortgage or car loan. When you apply for these loans, the lender will assess your credit report to determine your risk level. Remember that they shouldn’t make these hard inquiries without your permission.
2. A reporting error was made
If you notice a hard inquiry on your credit report, but you didn’t attempt to open a new line of credit, it may be a reporting error. In this case, you can call the credit bureau to inquire about the error and see if they can remove it.
3. An attempt was made to steal your identity
If you notice an unauthorized credit inquiry, but the bureau claims that you did authorize it, that may be a sign someone has attempted to steal your identity. You can report this to the Federal Trade Commission and your local police department and place a security freeze on your credit report to protect yourself.
How to write a credit inquiry removal letter
If you find an unwarranted hard inquiry on your credit report, you can file a dispute with the reporting agency. As mentioned above, an unwarranted inquiry could result from fraud or a company simply performing a hard inquiry without your permission. You have the right to dispute a credit inquiry when:
- You were not made aware of the inquiry
- You didn’t give permission before the inquiry was conducted
- There were more inquiries made than you anticipated
In order to dispute your inquiry, send a credit inquiry removal letter following the steps below.
1. Alert the credit bureau
Before you send your hard inquiry dispute letter, you should notify the lender and let them know that you are actively disputing the inquiry. This can help facilitate the process, especially if you’ll consider taking legal action if the credit bureau doesn’t remove the inquiry.
2. Include relevant information in your letter
Now that you’ve notified the lender, you can begin writing the inquiry dispute letter. You’ll need to include the following information in your letter:
- Name, birthday and address
- Today’s date
- Social Security number
- Phone number
- Credit bureau name
- Dispute reason
- Request for inquiry removal
3. Attach a document flagging any inaccurate hard inquiries
When drafting your letter, include a copy of your credit report and circle the inquiry that you are requesting removal of. This step can streamline the process and clear up any confusion surrounding the inquiry you’re referencing.
4 Send the letter to the credit bureau’s address
Once you have written your dispute letter and attached your credit report, you can send it to the credit bureau for review. Here are the addresses for each bureau.
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
You can also submit your letter online by visiting the following websites:
Sample credit inquiry removal letter
If you’re unsure how to write a hard inquiry dispute letter, we’ve got you covered. Use the template below to get started.
Mary Smith
[Consumer report number]
10/17/1995
1119 Broadway Street
San Diego, California
***-**-***
December 20, 2022
TransUnion Consumer Relations
P.O. Box 2000
Chester, PA 19016-2000.
Dear TransUnion,
I am writing to request an investigation of the following credit <inquiry/inquiries> on my credit report that I did not authorize.
- 9876-5432-1098-7654
- [Item number]
- 12/20/2022
If your investigation shows that I did not authorize <this/these> <inquiry/inquiries>, please have <it/them removed> from my credit report as soon as possible. Once resolved, please send me a copy of my updated credit report.
Thank you for your assistance.
Sincerely,
Mary Smith
Will removing a hard inquiry improve your credit score?
While there is no guarantee that your credit score will improve, you may see your credit score increase by up to five points per inaccurate inquiry removed. As mentioned above, hard inquiries typically only affect your credit score for one year, so removing them after that period will most likely have less impact.
How to stay on top of your credit report
Monitoring your credit report for unwarranted inquiries can prevent your credit score from dropping. A low credit score can keep you from being approved for loans, top credit cards and great interest rates. You can request one free copy of your credit report annually from each of the major credit bureaus: TransUnion®, Equifax® and Experian®.
If you have unwarranted hard inquiries on your credit report, you are not a lost cause. Credit repair companies can guide you through the process of disputing inquiries, which could result in better credit. Credit advisors can keep you on the path to financial health by helping you monitor your credit report.