Can you remove hard inquiries from your credit report?

Submitting a job application, setting up utility services, applying for a loan or credit or even taking steps to research your financial situation can trigger a credit inquiry.

Most checks on your credit are relatively routine. Still, a hard credit inquiry can lower your overall credit score temporarily. You might ask yourself if removing that inquiry from your credit report is possible. The simple answer is usually no, but it is possible if you never authorized the credit check.

What is a credit inquiry?

A credit inquiry, sometimes known as a credit pull, is a request to look at your credit report. Inquiries happen when individuals or companies want to know more about your financial health, specifically if you have paid loans or credit cards as agreed.

Inquiries are divided into two categories — soft and hard — based on the reason for the inquiry.

Soft inquiry

A soft inquiry happens when someone checks your credit history, but not because of any specific credit application. Some scenarios that could trigger a soft inquiry include:

• Checking your own credit: When you examine your credit report, you’re not taking action to add more debt to your life.
• Receiving marketing materials: Preapproved credit card offers that come in the mail  may be the result of a soft credit check
• Looking for a new job: Some employers check applicants’ credit, and the pre-employment credit check counts as a soft pull.
• Renting an apartment: Most landlord credit checks are soft pulls.

A soft pull will pop up on your credit report, but you’re the only one who sees it. Since a soft inquiry is more of an informal scan of your credit than a deep dive into your ability to pay off debt, a soft inquiry won’t impact your credit score.

Hard inquiry

A hard inquiry happens when a creditor or lender takes a detailed look at your credit file to decide whether to offer you credit. Scenarios that could trigger a hard inquiry include:

• Applying for a loan: When you apply for a mortgage, auto loan, student loan or credit card, the creditor wants to know your history of paying off debt. That helps them decide if you can pay off any debt they might issue.
• Asking for a credit limit increase: If you ask for a higher limit on your credit card or credit line, the lender may perform a hard credit check to determine your eligibility.

Because a hard credit check is an in-depth search, it will impact your credit score. It suggests you’re looking to borrow money, which could mean more risk. Fortunately, the effect is minimal compared to other factors that make up your credit score (like payment history, credit usage or number of open accounts).

Multiple hard inquiries within a certain period are usually counted as one if you’re applying for a home, student or auto loan.

A single credit score pull typically will decrease by less than five points. However, several credit pulls in a short time can signal financial distress. More hard inquiries will affect you more strongly because you look more risky to lend to. People with six inquiries or more on their credit reports can be up to eight times more likely to declare bankruptcy than those without inquiries.

The impact is temporary and should last less than a year. The hard credit pull stays on your credit report for two years.

When to dispute a hard inquiry

A hard credit pull requires your permission. If you authorized the lender or credit card company to delve into your financial background, you cannot remove the resulting inquiry from your credit report.

The situation is different if you didn’t authorize that hard pull. If this is the case, you can — and should — take steps to remove the inquiry from your report. The inquiry could result from a clerical error or indicate identity fraud or theft.

Here’s how to dispute an unauthorized hard pull, step by step.

1. Notify the creditor that made the inquiry

Contact that company to report the issue and determine who authorized the hard credit pull. The hard pull may have been done by mistake. If the company can’t prove that you authorized the inquiry, it should contact the credit bureaus to remove the error.

If you don’t recognize the hard inquiry, but the creditor insists you authorized it, look for signs of fraud or identity theft.

2. Tell the credit bureaus

In addition to asking the creditor to contact Equifax, Experian or TransUnion, you can contact the credit bureaus yourself. You have the right to dispute inaccurate information on your credit report.

To dispute the error, outline the issues and errors in writing. Fill out the necessary dispute forms, gather supporting documentation and mail the information to each bureau that reported the incorrect information.

3. Freeze your credit

Freezing your credit means asking the credit bureaus to put a lock on your report. It helps protect you from identity theft by preventing creditors from accessing your credit reports or issuing new credit in your name. Under federal law, you can freeze and unfreeze your credit anytime online or by phone. Be sure to request a freeze with all three bureaus.

A freeze will also prevent legitimate creditors from checking your credit report or score. If you are trying to get a new loan or credit card, remember to unfreeze your credit temporarily to be able to get approved.

4. Report identity theft to the government

Identity theft is a crime. You should report the incident if you believe someone stole your personal information to take out credit in your name.

The Federal Trade Commission’s IdentityTheft.gov website helps consumers report identity theft. The website also provides multiple action steps to help you get through the process and develop a recovery plan.

How to prevent unauthorized hard inquiries

You can take some proactive steps to prevent unauthorized hard inquiries from impacting your credit — and the credit consequences of these inquiries.

Check your credit reports regularly

The best way to keep an eye on hard and soft pulls on your credit is to check your credit reports consistently. Under the Fair Credit Reporting Act (FCRA), you have the right to one free credit report each year from each credit bureau.

Currently, the credit bureaus have committed to making free credit reports available weekly. To take advantage of this, visit AnnualCreditReport.com. The website will ask you a few questions and direct you to the three credit bureaus where you can download your credit reports.

Keep an eye on your credit score

Accessing your FICO score, VantageScore or both is a good idea. You can find this information by signing up for credit monitoring from one (or all) of the three bureaus. You may already have access to your free credit updates if you’re a bank or credit card customer with certain businesses.

Anytime you see an unexpected drop in your credit scores, investigate the cause. Look for any hard inquiries that seem unfamiliar, and follow up with the bureaus if you see anything suspicious.

Place fraud alerts on your credit accounts

Fraud alerts are helpful if you are or may be a victim of identity theft. When you request a fraud alert on your credit report, lenders or credit card companies know to check with you before providing a loan or issuing a new credit card in your name. The alert means others must take reasonable steps to ensure you authorize a credit check or financial inquiry.

You can request a fraud alert from any of the three credit bureaus. Once the alert is placed, the other two are automatically notified.

The bottom line

Hard inquiries record when creditors and lenders viewed your credit history. You can’t remove the hard inquiry from your credit report if you authorized the credit check. However, you have the right to dispute unauthorized inquiries, just as you can dispute any other error on your credit report. If you don’t have time to file disputes, consider getting help from a credit repair company.

Frequently asked questions

• How many hard inquiries are too many?
  

  The credit bureau Experian says there’s no specific limit that counts as too many. That said, avoiding applying for credit is a good idea unless you really need it. Lenders may see multiple hard inquiries within a short time as a red flag that you’re desperate for credit.

• How long should I wait between hard inquiries?
  

  Ideally, you should wait at least six months between credit card applications to spread out the hard inquiries and reduce their impact on your credit score.

  That said, don’t worry if you’re shopping for an auto loan or mortgage and need multiple credit checks quickly. If multiple hard pulls from lenders occur within 14 days, they are considered a single inquiry and shouldn’t have much impact on your credit score.

• Will removing hard inquiries improve my credit score?
  

  Removing unauthorized hard inquiries may affect your score, though the number of points you gain will vary depending on your credit history. If you have a single, recent hard inquiry, you might gain a few points when it’s removed. Older inquiries may have less of an impact.