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You can't remove a hard inquiry from your credit report unless it's fraudulent.
- A hard inquiry won't damage your credit score badly, but it will knock it down a few points.
- You get a hard inquiry on your credit report every time you apply for a credit card or loan, such as a mortgage or auto loan.
- You can't remove a hard inquiry unless it's fraudulent. In that case, you'll need to contact each credit bureau to dispute the inquiry.
- Need help boosting your credit score? CreditRepair.com can help »
Your credit score is tied to your financial health. That three-digit number becomes a pretty big deal when you're applying for a mortgage, auto loan, or credit card, since it determines how risky it is to loan money to you.
Getting a credit card is an important financial step to building credit, and applying for one is relatively easy - just a few clicks and you're done. But each credit card application triggers something called a "hard inquiry," which can hurt your score.
What is a hard credit inquiry and how does it affect your credit score?
When you apply for a credit card, loan, mortgage, or any other type of financing, a credit check is almost always performed by the lender, typically a bank or credit card company. This triggers a hard inquiry into your credit history to see if you're qualified.
Hard inquiries have a relatively small impact on your credit score. They typically only shave a few points off of your score, and only count for 10% of your FICO score.
So let's say you're on a hunt for a new credit card. It may be easier to apply for a bunch of credit cards at once and see which ones you qualify for. But is that smart?
Applying for several credit cards at once isn't the best idea
If you apply for several credit cards, each credit card company will request access to your credit report - meaning multiple hard inquiries. Your credit score may take a larger hit than if you had just applied for one card.
"If a lender sees multiple inquiries made in a short period, this can raise a red flag that you're desperately seeking financing, which may make you appear as a riskier borrower, thus potentially resulting in denial," said Ashley Dull, spokeswoman at CardRates.com.
Your best bet is doing your research before you apply and finding the card that meets your needs. Then, if your credit is in good shape, you can move forward with your credit card application.
Shopping around for mortgages, auto, or student loans is a bit different. If you apply for several of the same type of loan in a two-week period, the credit bureaus see that as shopping for the right deal and will count all of those hard pulls as one inquiry.
Having trouble getting a loan? CreditRepair.com can help you improve your credit score »
How to remove a hard inquiry from your credit report
Hard inquiries stay on your credit report for two years, though their impact on your credit score lasts for less time, typically about one year. The dip in your score is likely to be balanced out once you make on-time payments towards the loan or credit card you acquired.
Consumers can dispute a hard inquiry on their credit report in the case of fraud. Dull recommends reviewing your credit report at least once per year for suspicious activity. Seeing hard inquiries you aren't responsible for may indicate that someone has your identity and is trying to open a credit card in your name.
"Any information that is not accurate on your credit report can and should be removed," Dull said. "Once an invalid inquiry is removed, you may notice a small improvement to your credit score."
To dispute a hard inquiry, you must file an individual claim with each credit bureau - Equifax, Experian, and TransUnion - that shows incorrect information. You can file online, by phone, or mail. After filing, the bureau has 30 days to resolve your claim.
Once an invalid inquiry is removed, you may notice a small improvement in your credit score. If there were several invalid inquiries on your reports, your credit score will go up even more.
If you notice lots of fraudulent activity on your report, place a credit freeze on your account. It's free and provides an extra level of security; you can do that through each credit bureau.
Once you verify all your information, you'll get a special PIN. Anytime a request to access your credit report is made, it will require the PIN, meaning no hard inquiries can be placed on your report without your knowledge.
Need help cleaning up your credit? CreditRepair.com can help »
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