Remove Inquiries from Credit Report

Since the Fair Credit Reporting Act allows only authorized inquiries to appear in a consumer credit report, consumer can remove inquiries from a credit report.  To remove inquires from a credit report a consumer should first be fully aware of the credit inquiry and credit score process.

According to the Fair Credit Reporting Act, businesses with a permissible purpose may review the information in your credit report.  Every time you apply for credit whether it is a mortgage or credit card, the credit grantors will most likely check your credit report and at that time a credit inquiry is placed in credit report.

Some other examples of other permissible purpose to access a credit report may include current creditors that monitor your accounts, creditors that offer promotional or preapproved credit, new services or creditors such as credit cards and employers that the consumer has given permission to access their credit report.  In addition, credit report inquiries are posted when a consumer checks their own credit report.

The Fair Credit Reporting Act allows only authorized inquiries to appear on the consumer credit report.  In order to have a credit inquiry removed, you must challenge whether the inquiring creditor had proper authorization to pull your credit file.

One of the primary reasons to remove unauthorized credit report inquiries is because when information in a credit report indicates that a consumer has been applying for several types of new credit or loans in a short period of time, as would be indicated by numerous credit report inquiries, the credit score can be lower as a result.

However, credit report inquiries may or may not affect your credit score. Most credit scores takes evaluate or weigh only voluntary inquiries that result from your application for credit.  Credit scores generally do not take into account any involuntary inquiries made by businesses with whom you did not apply for credit, inquiries from employers, or your own requests to see your credit report.  This is true of the largest credit score company, the producers of the FICO score.

Furthermore, credit scores are generally not affected by multiple inquiries from auto, mortgage or student loan lenders within a short period of time.  Typically, these inquiries are considered as a single inquiry and will have little impact on the credit score.

Credit report inquiries remain on a credit report for two years however, the largest credit scoring model, FICO credit scores only considers inquiries from the last 12 months in a consumer’s credit score. 

It is also important to note that if you do apply for several credit cards within a short period of time, multiple inquiries will appear on your report however, if it affects the credit score, it generally does not drop the credit score very much.  The drop in the credit score will be dependent on how long a credit history the individual has and how many open accounts are in their credit profile.

The first step to remove inquiries for a credit report is to order a full credit report from annualcreditreport.com.  The credit report received from annualcreditreport.com lists the credit inquiries as well as the reason codes for the inquiries.  With this information, it is easier to determine if the credit inquiry is an authorized inquiry.

Since only authorized inquiries are allowed, the consumer needs to dispute or challenge whether the inquiries reflected in their credit report had proper authorization to access the credit report.

Review your credit report and look for inquires two years or older or ones that do not appear to have your authorization.  Credit reporting agencies should remove those credit inquiries that appear over two years old.

Now, review the credit report inquiries that do not appear to have your authorization.  Next, send a letter to the credit reporting agency that displays the credit report inquiry.  In the body of the letter describe the company that inquired and request that it be removed.   If there are multiple inquiries that were done without proper authorization, all inquires you want removed can be included in one letter.

Leave a Comment