A credit inquiry is a request by a legitimate business to check the credit history of a potential customer. There are hard and soft inquires, but only hard inquiries will affect the FICO score.
Soft inquiries include inquiries that the person makes on his or her own credit score as well as inquiries made by businesses that want to send promotional material or offers for credit cards.
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Hard inquiries include inquiries made by a potential lender to decide if they want to extend credit to the consumer.
Large Number Of Hard Inquiries
A large number of inquiries on a credit report can make it extremely difficult or impossible for the consumer to buy a house, car or any purchase that requires credit.
Consumers should take the time to review their credit report to find out if there are any unauthorized credit inquiries on their credit report.
If this is the case, they can send a credit inquiry removal letter and have all or some of the hard inquiries removed. This would most likely raise their credit score. According to the Fair Credit Reporting Act (FCRA), consumers have the right to dispute any inaccurate information on their credit report.
How To Remove Hard Credit Inquiries?
Credit inquiries are a reasonable way for a lending institution to determine if a person is a good risk before they lend them money.
When they make a hard inquiry it will show on the consumer’s credit report. If this is done without the consumer’s knowledge or permission, it may result in too many inquiries that will lower the consumer’s credit score.
The consumer should view their credit report at least once or twice a year to see if there are any irregularities. If they are applying for credit and constantly getting turned down, it may be because their credit score is unfairly low.
3 Major Credit Bureaus
The first thing to do is make a request to the three major credit bureaus; Experian, TransUnion and Equifax.
If the credit bureaus are able to identify the consumer’s identity, and there is no freeze on their report, they can order it online. Otherwise, they need to submit the request by phone or through the mail.
The consumer will find a list of enquires on the credit reports from the past two years. They should make a list of any that are unauthorized along with the company’s contact information and the date of the inquiry.
This list will be added to the credit inquiry removal letter sent to each of the credit bureaus. Each dispute will need to be put on a separate form. The form can be downloaded from the credit bureau’s websites.
Time For Research
It may take from 30 to 45 days for the dispute to be researched by the credit bureau. They need to contact each company to determine if the inquiry was authorized or not. Any unauthorized inquires will be removed from the consumer’s credit report.
They will inform the consumer that they are removing the inquiries. It may take up to 30 days to update the credit report. The consumer should order another copy of their credit report after 30 days to make sure the unauthorized inquires have been removed.
Here is a sample hard credit inquiry removal letter. It needs to be sent by certified mail to each of the three main credit bureaus. Any enclosures should be copies. No original documents should be sent.
Template 1: Disputing Unauthorized Hard Inquiries
[Your Name]
[Your Address]
[City, State ZIP Code]
[Date]
[Credit Bureau Name]
[Credit Bureau Address]
[City, State ZIP Code]
To Whom It May Concern:
I am writing to dispute the following unauthorized hard credit inquiries on my credit report:
[List the name of the creditor or lender that made the hard inquiry]
[List the date of the hard inquiry]
I did not apply for any credit with these companies, nor did I authorize these hard inquiries. These inquiries are causing a negative impact on my credit score, and I request that they be removed from my credit report immediately.
I believe these hard inquiries may be the result of identity theft or a mistake on the part of the creditor. I have not applied for any new credit or loans recently, and I am concerned that my personal information may have been used without my consent.
Under the Fair Credit Reporting Act, I have the right to dispute any inaccurate or unauthorized information on my credit report. I am requesting that you investigate these hard inquiries and remove them from my credit report if they are found to be inaccurate or unauthorized.
Enclosed are copies of my credit report with the hard inquiries highlighted for your reference. Please investigate this matter and provide me with a written response as soon as possible.
Thank you for your prompt attention to this matter.
Sincerely,
[Your Name]
Template 2: Disputing Hard Inquiries After Credit Report Freeze
[Your Name]
[Your Address]
[City, State ZIP Code]
[Date]
[Credit Bureau Name]
[Credit Bureau Address]
[City, State ZIP Code]
To Whom It May Concern:
I am writing to dispute the following hard credit inquiries on my credit report:
[List the name of the creditor or lender that made the hard inquiry]
[List the date of the hard inquiry]
I placed a credit report freeze on my account on [Date], and I did not authorize these hard inquiries. These inquiries are causing a negative impact on my credit score, and I request that they be removed from my credit report immediately.
I have reviewed my credit report and found that these hard inquiries were made without my consent or knowledge. I have not applied for any new credit or loans recently, and I believe these inquiries may be the result of identity theft or a mistake on the part of the creditor.
Under the Fair Credit Reporting Act, I have the right to dispute any inaccurate or unauthorized information on my credit report. I am requesting that you investigate these hard inquiries and remove them from my credit report if they are found to be inaccurate or unauthorized.
Enclosed are copies of my credit report with the hard inquiries highlighted for your reference. Please investigate this matter and provide me with a written response as soon as possible.
Thank you for your prompt attention to this matter.
Sincerely,
[Your Name]
Template 3: Disputing Hard Inquiries from Closed Accounts
[Your Name]
[Your Address]
[City, State ZIP Code]
[Date]
[Credit Bureau Name]
[Credit Bureau Address]
[City, State ZIP Code]
To Whom It May Concern:
I am writing to dispute the following hard credit inquiries on my credit report:
[List the name of the creditor or lender that made the hard inquiry]
[List the date of the hard inquiry]
These hard inquiries were made on accounts that have been closed for some time, and they are causing a negative impact on my credit score. I request that they be removed from my credit report immediately.
Under the Fair Credit Reporting Act, I have the right to dispute any inaccurate or outdated information on my credit report. I am requesting that you investigate these hard inquiries and remove them from my credit report if they are found to be inaccurate or outdated.
Enclosed are copies of my credit report with the hard inquiries highlighted for your reference. Please investigate this matter and provide me with a written response as soon as possible.
Thank you for your prompt attention to this matter.
Sincerely,
[Your Name]
Frequently Asked Questions (FAQs)
Q. What is a hard credit inquiry?
Answer: A hard credit inquiry, also known as a hard pull, is a request for your credit report that is initiated by a lender or other financial institution when you apply for credit. Hard credit inquiries can affect your credit score and remain on your credit report for up to two years.
Q. How do I remove a hard credit inquiry from my credit report?
Answer: You can request that a hard credit inquiry be removed from your credit report if it was the result of fraud or if you did not authorize the inquiry.
To request the removal of a hard credit inquiry, you will need to contact the credit bureau that is reporting the inquiry and provide evidence of the fraud or unauthorized activity.
If the credit bureau determines that the hard credit inquiry was the result of fraud or unauthorized activity, they will remove it from your credit report.
Q. Can I remove a hard credit inquiry that was the result of a legitimate credit application?
Answer: It is generally not possible to remove a hard credit inquiry that was the result of a legitimate credit application.
Hard credit inquiries are a normal part of the credit application process and are typically included in your credit report as a record of your credit activity.
Q. How many hard credit inquiries is too many?
Answer: Having too many hard credit inquiries can negatively impact your credit score. It is generally recommended to minimize the number of hard credit inquiries you have on your credit report, as each inquiry can lower your credit score by a few points.
However, the specific number of hard credit inquiries that is considered “too many” will depend on your individual credit history and other factors.
Q. How long do hard credit inquiries stay on my credit report?
Answer: Hard credit inquiries remain on your credit report for up to two years. However, their impact on your credit score tends to diminish over time.
Q. Do all credit inquiries have the same impact on my credit score?
Answer: Not all credit inquiries have the same impact on your credit score. Hard credit inquiries, which are initiated when you apply for credit, can have a negative impact on your credit score.
Soft credit inquiries, on the other hand, are not initiated by credit applications and do not have an impact on your credit score.
Examples of soft credit inquiries include when you check your own credit score or when a lender pre-approves you for a credit offer.
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