Chris O'Shea
Hard inquiries on your credit report can hurt your credit score. What hurts even more is if the inquiries were done in error or fraudulently.
Prevent Errors by Checking Your Report Often
It’s important to check your reports regularly to maintain good credit health. It’s also helpful in finding inaccuracies, errors, or fraud. If you find a false hard inquiry, remove it immediately to prevent your score from plummeting for no reason. Here are some steps to do that:
Removing Hard Pulls
The only inquiries that hurt your credit score are hard inquiries (or pulls). Soft pulls occur when you check your credit report yourself.
What is a Hard Inquiry?
A hard pull occurs when you apply for a credit card or loan. When you do this, the lender checks your credit report at one or more of the three credit bureaus to determine your creditworthiness. The more hard pulls on your credit report, the more your score may be negatively impacted.
- Note: Lenders view several hard pulls in a short period of time as an indicator of credit-seeking behavior or that you struggle to responsibly handle credit.
Waiting Game
If you check your credit report and find only legitimate hard pulls, there’s nothing you can do but wait. Legit hard inquiries will typically be removed from your credit reports after two years.
Call It In
What you want to stop are any hard pulls you didn’t authorize.
These can happen as a result of identity theft or other fraudulent activity. If you see an unauthorized hard inquiry on your credit report, immediately contact the credit bureau that shows the hard inquiry.
- Note: Make it a habit to regularly check your credit report at each of the three major bureaus, TransUnion, Equifax, and Experian. If you spot a false pull, report it right away.
Do One Thing. Set a reminder to check your credit reports at all three bureaus at least every six months, or more frequently if that makes you feel more comfortable. (You are entitled to free credit reports every week from the bureaus.)
Jean Chatzky
