How to Remove Hard Inquiries from Your Credit Report

Hard inquiries occur when a lender checks your credit report to assess your eligibility for a loan or credit. While one or two inquiries won’t significantly impact your score, multiple hard inquiries over a short time can add up and lower your credit score. Here’s a guide on how to identify, manage, and even remove hard inquiries from your credit report.

1. Understand Hard Inquiries vs. Soft Inquiries

Not all credit checks are created equal! A hard inquiry happens when a lender reviews your credit report before offering credit or a loan, and it can impact your score. Examples include applying for a mortgage, car loan, or credit card. On the other hand, soft inquiries (like checking your own score or pre-qualification checks) don’t affect your score and don’t need to be removed.

2. Review Your Credit Report for Unauthorized Inquiries

You can access free credit reports from the three major bureaus (Equifax, Experian, and TransUnion) at AnnualCreditReport.com. Take a close look at the inquiries section on each report. Any hard inquiries you didn’t authorize or recognize could be disputed.

3. Dispute Unauthorized Inquiries

If you find an inquiry on your report that you didn’t authorize, you have the right to dispute it with the credit bureaus. Here’s how:

• Contact the Credit Bureau(s): Write a formal letter or file an online dispute with the relevant bureau(s). Explain that you don’t recognize the inquiry and provide any documentation that supports your case.
• Contact the Creditor: Reach out to the creditor directly if you believe there’s been an error or fraudulent activity. Ask them to provide proof of your authorization. If they can’t, they may remove the inquiry.
• Monitor Your Report: Follow up to ensure the inquiry is removed. This process can take 30 days or more, depending on the complexity of your case.

4. Wait for Expiration of Legitimate Hard Inquiries

Hard inquiries that you authorized will typically stay on your credit report for two years, but their impact on your score usually lessens after the first year. If they’re legitimate, you’ll need to wait for them to naturally expire.

5. Avoid Excessive Hard Inquiries in the Future

To minimize hard inquiries on your report, try to avoid applying for multiple credit accounts in a short period. Instead, consider these tips:

• Do Rate Shopping within a Short Period: If you’re shopping for a mortgage or auto loan, try to complete all applications within a two-week period. Most scoring models will count these as a single inquiry if they’re for the same type of loan.
• Opt for Pre-Qualification: Many lenders offer pre-qualification or pre-approval, which only involves a soft inquiry and won’t affect your score. Once you find an offer you like, then you can proceed with a formal application.

6. Consider Credit Repair Help if Needed

If you’re struggling with multiple inquiries or other credit issues, professional credit repair services can provide guidance on how to approach disputes and improve your score overall.

Remember, hard inquiries are just one part of your credit score, and they tend to have a relatively minor effect. By managing your applications wisely, disputing unauthorized inquiries, and staying patient with legitimate ones, you can keep your score healthy and avoid unnecessary drops.