In the world of credit, knowledge is power. Your credit report is one very important document that would considerably affect your financial life, dictating everything from loan approvals down to interest rates. One usually overlooked feature about credit reports is hard inquiries. While a few hard inquiries are normal, the inaccurate ones can unfairly lower your credit score. This comprehensive guide will take you through the process of identifying and disputing hard inquiries that are not accurate so that you can maintain a healthy credit profile.
It’s all about learning how to dispute those hard inquiries inaccurately. Anyone interested in his or her financial future would do well by gaining a little insight into certain credit secrets. Whether you’re a credit novice or seasoned pro, this article will equip you with just what you need to protect your credit score from unnecessary damage.
What Are Hard Inquiries?
Before we go into how to dispute them, let’s first understand what hard inquiries are and how they work against your credit.
What are Hard Inquiries?
A hard inquiry, also known as a “hard pull” or “hard credit check,” is when a financial institution-a lender or credit card company-accesses your credit report as part of making a decision on whether to approve you for a particular credit product. This generally happens when you apply for a credit card, a loan, or a mortgage.
How Hard Inquiries Affect Your Credit Score
Hard inquiries can affect your credit score a number of ways:
- Temporary score reduction: Each hard inquiry can reduce your credit score by a few points, usually in the range of 5-10 points.
- Multiple inquiries: A number of hard inquiries within a short period of time may indicate financial problems and could lead to a greater reduction of your score.
- How long it affects: The hard inquiries will remain in your credit report for two years, but after some months, usually, their influence on your score diminishes.
Hard vs. Soft Inquiries
Hard and soft inquiries should be distinguished as follows:
- Hard inquiries involve a credit application and require your permission.
- Soft inquiries are when you request a copy of your credit report or other reports, or when companies review your credit report for promotional purposes. The latter do not affect credit score.
Why Incorrect Hard Inquiries Count
There are several ways in which incorrect hard inquiries on your credit report can adversely affect you:
- Undeserved credit score reduction: Every false inquiry can reduce your credit score without any reason.
- Misleading of credit activity: Too many inquiries create a misleading picture of your desperation to get credit when, actually you may not be.
- Chances of loan disapprovals: Too many inquiries may lead to the rejection of applications for loans or credit cards.
- Less privileged terms: More inquiries equate to less privileged rates on loans or credit cards.
Considering the potential impacts, therefore, it is important to check your credit report on a regular basis and dispute any hard inquiries that are not correct.
How to Detect Bad Hard Inquiries
Before you can dispute poor hard inquiries, you should have an idea of how they look. Here’s a procedure in which the search can be conducted:
1. Get Your Credit Reports
With AnnualCreditReport.com, you are entitled to one free credit report from each of the three major credit bureaus -Equifax, Experian, and TransUnion- once every twelve months. Because of the COVID-19 pandemic, all Americans can get free weekly online reports through the end of 2023.
2. Find the Hard Inquiries Section
On your credit report, find the section labeled “Hard Inquiries” or “Regular Inquiries.” This section lists all the companies that have accessed your credit report within the last two years.
3. Follow up on Every Inquiry Carefully
Go down the list and follow up with each and every inquiry, asking yourself the following questions:
Is this a company you are familiar with?
Did you apply for credit with this company?
Is the date of this inquiry consistent with when you applied for credit?
- Watch for these Red Flags
Some signs that there might be an error on a hard inquiry include:
Inquiries from businesses you’ve never heard of
Multiple entries from one company, showing different dates
Inquiries on dates that you know you didn’t apply for credit
Inquiries from companies in states where you have never lived or done business
- Watch for Signs of Identity Theft
If you happen to notice a number of queries that you are unfamiliar with, especially from several companies, this could be your identity stolen. In this case, there is more that you should have to do in order to safeguard your identity.
The Step-by-Step Process to Dispute Inaccurate Hard Inquiries
Having identified the wrong hard inquiries, it is now time to dispute them. Here is an in-depth guide on the way to go about it.
Step 1: Gather Your Evidence
Collect all information which can support your claim prior to filing of dispute. These can be:
Copies of credit reports with your highlighted fraudulent inquiries
Correspondences that you may have with the involved company
Identity theft proof
Step 2: Contact the Credit Bureau
You will need to dispute the wrong inquiry with each credit bureau reporting it. You can do this online, through the mail, or by calling them. Here is how:
Online:
- Access the website of the credit bureau at
- Equifax: www.equifax.com
- Experian: www.experian.com
- TransUnion: www.transunion.com
- Proceed to the dispute section
- Create an account with or log in
- Follow the on-screen steps to submit your dispute
By Mail:
- A dispute letter with the following information:
- Full name and address
- The inquiry you are disputing and why
- Request to delete the inquiry
- Enclose a copy of the credit report that has been received, circle the disputed inquiry
- Address your letter via certified mail-return receipt requested and send to:
- Equifax Information Services LLC, P.O. Box 740256, Atlanta, GA 30374-0256
- Experian, P.O. Box 9701, Allen, TX 75013
- TransUnion LLC, Consumer Dispute Center, P.O. Box 2000, Chester, PA 19016
By Phone:
- Equifax: 1-866-349-5191
- Experian: 1-888-397-3742
- TransUnion: 1-800-916-8800
Step 3: Contact the Company That Made the Inquiry
In addition to disputing with the credit bureaus, contact the company that made the inquiry directly. This can often resolve the issue quicker.
- Call the company’s customer service number
- Informed them that there is an incorrect hard inquiry on your credit report
- Ask them to remove the hard inquiry
- If needed, send your request in writing
Step 4: The Investigation – Wait for It
Credit bureaus are legally required to investigate disputes within a timeframe of 30 days, with an extension of up to 45 days in certain cases. In the meantime:
- The credit bureau will reach out to the company where the inquiry originated
-The firm should then re-verify in writing that the information is correct
-In case the firm has no response or cannot verify the investigation, the item must be deleted
Step 5: Receive the Report
If your investigation is complete, then the credit bureau will send you written results. They must also provide you with a free copy of your credit report if the disputed result changed.
If the investigation is not removed and you think that it is not accurate, you can:
- Re-instate another dispute with more proof
- Add a statement to your credit report about the dispute
- Consult a credit repair attorney if the case is not resolved.
Tips for Successful Dispute
For a successful dispute, here are some tips to look at:
1. Be Thorough and Accurate
Include as much information as possible when disputing. The more information provided, the easier it is for the credit bureau to investigate.
2. Continue Being Organized
Keep copies of all correspondence, including dispute letters, responses from credit bureaus and companies, and copies of your credit reports.
3. Be Patient but Persistent
Generally speaking, the dispute process can be very time-consuming. Follow up on a regular basis but, again, patience is required-it could take many weeks to resolve.
- Send by Certified Mail
Send dispute letters by certified mail with return receipt. This will provide proof that the credit bureau received your dispute.
- Dispute to All Parties Concerned
Make sure that you send disputes to all credit bureaus reporting the query that is in error and also to the company that pulled it, too.
Preventing Future Inaccurate Hard Inquiries
While knowing how to dispute the charge of an inaccurate hard inquiry is important, it is far better to try to avoid them in the first place. Following are some strategies:
1. Run Your Credit Reports on a Regular Basis
It is a good idea to make a practice of reviewing your credit reports at least once a year. You’re in a better position to catch inaccuracies and dispute them sooner.
2. Apply for Credit with Care
Apply for credit only when absolutely necessary. Most applications will result in a hard inquiry, so use discretion.
3. Make Use of Credit Monitoring Services
Avail yourself of a credit monitoring service that will alert you whenever there are new inquiries on your credit file. This way, you’ll be able to identify unauthorized inquiries as early as possible.
4. Protect Your Personal Information
Be very careful about giving out your personal information, especially your Social Security number. This will serve as a safeguard against identity theft and unauthorized access to credit.
- Freeze Your Credit
If you are not planning to apply for credit soon, then you can freely freeze your credit. It prevents new accounts from being opened in your name.
Know Your Rights
With regard to disputing hard inquiries that are inaccurate, you may want to know your rights under the Fair Credit Reporting Act:
1. Right to Dispute
Anything that you think is wrong or incomplete about your credit report can be disputed.
2. Right to a Free Credit Report
Once every 12 months, you are entitled to one free copy of your credit report from each of the credit bureaus.
3. Right to Know What’s in Your File
You have the right to be informed of what is contained in your file. In most cases, information is provided free of any cost.
- Right to Request Your Credit Score
You can request your credit score. You generally will have to pay for it.
- Right to Damages
You may sue violators of the FCRA. If a company willfully violates the FCRA, you may be entitled to actual or statutory damages.
Frequently Asked Questions
Not much misinformation about hard inquiries goes away. Allow me to clear this up with a few questions:
Q1: How long will hard inquiries remain on my credit report?
A: Hard inquiries remain on your credit report for two years. Usually, it only affects your credit score for about 12 months.
Q2: Can I dispute a hard inquiry if I requested one but then changed my mind?
Q: Is the information from the hard inquiry always accurate-even if I didn’t ultimately take out the credit?
A: Generally, no. If you gave permission for the inquiry, it is considered valid even if you ultimately decided not to take out the credit.
How many points will my credit score increase if one hard inquiry is removed?
A: It varies, but the removal of a single hard inquiry could increase your score by as many as 5 points. If multiple inquiries are removed, the increase could be larger.
Q4: Can I dispute inquiries online?
A: Yes, you can dispute inquiries with all three major credit bureaus online through their websites.
Q5: What if the credit bureau doesn’t take off the inquiry after I dispute it?
A: If you have provided proof, yet the bureau still refuses to remove the inquiry, then you can always add a statement to your credit report explaining the situation. You may also want to consult with a credit repair professional or attorney.
Conclusion
Knowing how to dispute false hard inquiries is one of the essential ingredients in maintaining good credit health. In this case, through frequent reviews of credit reports, instant detection of inaccuracies, and proper procedures in disputing any error, your credit score would be in tune with your actual creditworthiness.
Remember, it takes some tenacity to dispute incorrect hard inquiries and doesn’t always happen overnight. But the would-be benefits to your credit score and overall financial health will be worth your while. In taking an active role in monitoring and maintaining your credit report, you’re taking a vital investment in your future financially.
Proceed with the practice of rechecking your credit reports, understanding when to be cautious with respect to applying for new credit, and watching out for how your personal information is protected. All these practices, plus knowing how to dispute mistakes, will stand you in good stead and keep your credit profile healthy for many years to come.
Your credit report is a reflection of your financial life. Ensuring its accuracy includes disputing hard inquiries that are not accurate, meaning you are in control of your financial narrative. This will open up more opportunities, better credit terms, lower interest rates, and more that come along with good credit. Remember, when it comes to your credit, you are your own best advocate.
