Disputing and Erasing Credit
Inquiries
by Lisa Phillips
Inquiries
by Lisa Phillips
Collection agencies may also pull a hard inquiry. Hard inquiries can
take points from your credit score. Many hard inquiries are also
viewed negatively by creditors and can be used as a reason to deny
you credit.
The Soft Inquiry
A soft inquiry may not have been authorized by you. Your existing
creditors pull your credit reports to see how you are paying your other
bills and if any problems exist. They also do this as an excuse to
invoke “universal default” which can raise your current interest rate.
Lenders and credit card issuers also pull soft inquiries in order to
screen you for pre-approved offers. Soft inquiries do not take points
away from your credit score and are supposedly only viewable by you.
take points from your credit score. Many hard inquiries are also
viewed negatively by creditors and can be used as a reason to deny
you credit.
The Soft Inquiry
A soft inquiry may not have been authorized by you. Your existing
creditors pull your credit reports to see how you are paying your other
bills and if any problems exist. They also do this as an excuse to
invoke “universal default” which can raise your current interest rate.
Lenders and credit card issuers also pull soft inquiries in order to
screen you for pre-approved offers. Soft inquiries do not take points
away from your credit score and are supposedly only viewable by you.
A credit inquiry is a request to view your
credit report. There are two types of
credit inquiries: (1) Hard Inquiry and (2)
Soft Inquiry. The major difference
between the two is that one affects your
credit score and one does not.
The Hard Inquiry
When you fill out a credit application
you authorize a bank, credit card
company or lender to view your credit
history. This is known as a hard inquiry
and is done with “permissible purpose”.
credit report. There are two types of
credit inquiries: (1) Hard Inquiry and (2)
Soft Inquiry. The major difference
between the two is that one affects your
credit score and one does not.
The Hard Inquiry
When you fill out a credit application
you authorize a bank, credit card
company or lender to view your credit
history. This is known as a hard inquiry
and is done with “permissible purpose”.
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Pre-Approved Offers
When you receive a “pre-approved” offer in the mail, this means a bank or credit card company has
screened your credit and made a soft inquiry. However, even when you receive a pre-approved
credit offer in the mail and you respond, a hard inquiry will most likely be pulled. This means a hard
inquiry will be added to your credit files and points will be deducted from your credit score.
Why hard credit inquiries are bad
Credit grantors view too many credit inquiries as a sign of financial trouble. The creditor has no way
of knowing if you were approved for all of the credit you applied for. Your credit inquiry does not
indicate approval or denial. They may assume you received the credit lines that are showing as
inquiries. Additionally hard credit inquiries take away points from your credit score. Too many hard
inquiries could result in a denial of credit and bring down your credit score.
Mortgage and Auto loan inquiries
It is wise to shop around for the best interest rates when making a major purchase such as a house
or automobile. But shopping around for the best rates may result in many inquiries during the
shopping phase. The credit reporting agencies supposedly have a buffer to prevent your credit
scores from taking a dive for too many inquiries when shopping around for interest rates.
All inquiries related to a mortgage loan or auto loan done within a 14-day period are counted as
one inquiry. The issue with this is that the inquiries are supposed to indicate a mortgage or auto
inquiry on your credit report but there is no way of knowing if a lender or bank has noted that
inquiry correctly. Just be informed and ask your lender before applying, especially at a car
dealership. They may run your credit through many lenders in order to get you approved.
How long do inquiries remain on your credit report
All credit inquiries remain on your credit report for two years and should drop off automatically when
the two years as expired.
Erasing credit inquiries
The credit reporting agencies will tell you that credit inquiries are just a statement of fact and
cannot be removed. This is not true. FRCA Rules state that any information can be disputed and
must be investigated. You need not worry about soft inquiries as they do not count against your
credit score. Credit inquiries made without “permissible purpose” should be disputed. The FCRA
states you can sue for damages in the amount of $1,000 for each instance a company pulled your
credit report without your permission.
Credit inquiries made without your permission may indicate fraud, in which case the credit reporting
agencies may put a fraud alert in your files. A fraud alert will make it difficult for anyone, including
you, to access your credit report without your permission.
Permissible purpose would be if you applied for credit, one of your current creditors may pull a hard
inquiry or a collection agency holding a debt may pull your credit report.
Is disputing credit inquiries worth the time
If the credit inquiry is really a mystery to you and you don’t recall requesting credit then you should
initiate an investigation with the credit reporting agencies. It could be a matter of fraud and you
want to handle that immediately. A fraud alert may be put in your files in order to protect you. Fraud
alerts will also keep you from applying for credit easily. Most credit grantors disregard credit
inquiries after 6 months. While they do remain on your credit reports for 2 years, they are not
heavily weighed in decisions to grant credit. Your time may be better spent disputing other types of
information that would significantly raise your credit score if deleted. See Disputes.
Disputing credit inquiries that actually belong to you may prove detrimental to your credit account
and credit reports. You run the risk of your account being closed and your credit report being
flagged with a fraud alert. As stated above, having fraud alerts placed on all of your credit reports
is very cumbersome and difficult to deal with when applying for credit. Fraud alerts should only be
utilized if actual fraud has taken place.
When you receive a “pre-approved” offer in the mail, this means a bank or credit card company has
screened your credit and made a soft inquiry. However, even when you receive a pre-approved
credit offer in the mail and you respond, a hard inquiry will most likely be pulled. This means a hard
inquiry will be added to your credit files and points will be deducted from your credit score.
Why hard credit inquiries are bad
Credit grantors view too many credit inquiries as a sign of financial trouble. The creditor has no way
of knowing if you were approved for all of the credit you applied for. Your credit inquiry does not
indicate approval or denial. They may assume you received the credit lines that are showing as
inquiries. Additionally hard credit inquiries take away points from your credit score. Too many hard
inquiries could result in a denial of credit and bring down your credit score.
Mortgage and Auto loan inquiries
It is wise to shop around for the best interest rates when making a major purchase such as a house
or automobile. But shopping around for the best rates may result in many inquiries during the
shopping phase. The credit reporting agencies supposedly have a buffer to prevent your credit
scores from taking a dive for too many inquiries when shopping around for interest rates.
All inquiries related to a mortgage loan or auto loan done within a 14-day period are counted as
one inquiry. The issue with this is that the inquiries are supposed to indicate a mortgage or auto
inquiry on your credit report but there is no way of knowing if a lender or bank has noted that
inquiry correctly. Just be informed and ask your lender before applying, especially at a car
dealership. They may run your credit through many lenders in order to get you approved.
How long do inquiries remain on your credit report
All credit inquiries remain on your credit report for two years and should drop off automatically when
the two years as expired.
Erasing credit inquiries
The credit reporting agencies will tell you that credit inquiries are just a statement of fact and
cannot be removed. This is not true. FRCA Rules state that any information can be disputed and
must be investigated. You need not worry about soft inquiries as they do not count against your
credit score. Credit inquiries made without “permissible purpose” should be disputed. The FCRA
states you can sue for damages in the amount of $1,000 for each instance a company pulled your
credit report without your permission.
Credit inquiries made without your permission may indicate fraud, in which case the credit reporting
agencies may put a fraud alert in your files. A fraud alert will make it difficult for anyone, including
you, to access your credit report without your permission.
Permissible purpose would be if you applied for credit, one of your current creditors may pull a hard
inquiry or a collection agency holding a debt may pull your credit report.
Is disputing credit inquiries worth the time
If the credit inquiry is really a mystery to you and you don’t recall requesting credit then you should
initiate an investigation with the credit reporting agencies. It could be a matter of fraud and you
want to handle that immediately. A fraud alert may be put in your files in order to protect you. Fraud
alerts will also keep you from applying for credit easily. Most credit grantors disregard credit
inquiries after 6 months. While they do remain on your credit reports for 2 years, they are not
heavily weighed in decisions to grant credit. Your time may be better spent disputing other types of
information that would significantly raise your credit score if deleted. See Disputes.
Disputing credit inquiries that actually belong to you may prove detrimental to your credit account
and credit reports. You run the risk of your account being closed and your credit report being
flagged with a fraud alert. As stated above, having fraud alerts placed on all of your credit reports
is very cumbersome and difficult to deal with when applying for credit. Fraud alerts should only be
utilized if actual fraud has taken place.
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