Different lenders, insurance companies and utility companies will check credit reports once you are filing an application with them. All the businesses that have previously checked your credit report within last 24 months are listed in a section called Inquiries.
If you don’t want inquiries on your credit report for any reason, you’ve landed at just the right place.
Generally there are two types of inquiries; soft and hard inquiries. Soft inquiries are initiated when businesses check your credit report for products or services whereas hard inquiries arise when you file an application.
Only hard inquiries are factored into your credit score. It’s recommended that you space out the credit applications so your credit score doesn’t suffer. Different lenders use various credit scoring models therefore it’s essential that you read through the terms and conditions properly.
Procedure to Remove Inquiries
It’s a good practice to check your credit scores regularly to avoid any errors. Errors in the credit score can result in immense losses and could mean potential identity theft. Before you seek a new credit loan, it’s important to remove any unnecessary inquiries so your credit report reflects the actual credit history. In case, you find any hard inquiries on your report, you can dispute the information and change it accordingly.
To dispute a particular inquiry, firstly write to the credit bureau identifying the inquiry and requesting to remove it. You will need to reference the particular business that made the inquiry and the date it was made. This will pinpoint your complain for the credit bureau and they can effectively resolve it.
After receiving your request, credit bureau will do a proper investigation on the company that was referenced in your letter. Once the inquiry is confirmed as an error, it will be simply be removed by the credit bureau enhancing your credit score. However, there will not be any significant improvement in the overall credit score as inquiries only make 10% of it. If you want to have a significant impact on your credit score, avoid late payments or increased credit card balances.
Inquiries from Fraud
Some companies may have fraudulent inquiries in your credit report. Therefore closely monitor your credit report and identify any such inquiries. You can place a fraud alert or a security freeze to avoid any such inquiries in the future and have a consistent credit score.
Removing Inquiries you Actually Made
Unfortunately, you cannot remove inquiries that are actually filed as they aren’t fraudulent in nature. So simply because you don’t like a particular inquiry in your report, you can’t tweak it or change it. Credit bureaus tend to provide accurate information mostly as long as the inquiries are authentic in nature.
We encourage you not to worry about inquiries as they aren’t permanent and will be factored out after a couple of months. There isn’t a certain limit that will potentially hurt your credit score however it’s still recommended to keep the inquiries low. It will help you with getting better credit loans and other financial transactions in the future.