If credit inquiries are a source of frustration to you, then you’re in the right place.
The section on your credit report called “Credit Inquiries” lists the creditors and companies that have pulled your credit report in the last 2 years.
There are two types of inquires: Hard and Soft.
A soft inquiry is the result of an existing lender requesting to see your credit score to determine your current financial situation. A soft inquiry also occurs when you request a copy of your own credit report, like through a credit monitoring service. Soft inquiries do NOT effect your score.
A hard inquiry is made by a lender who claims you have completed an application for credit like loan or credit card. A hard inquiry CAN effect your credit score.
The reason is simple… multiple inquiries makes you look “credit hungry”. Lenders don’t want to lend to you if you need money. Besides, a lender can’t tell if you’ve already been approved with another lender and the tradeline just isn’t reporting yet. It’s a risky position for the lender and lender’s don’t like risk.
The really irritating part is when you find collection agencies listed as hard inquiries. They will pull your credit to find out if you’re in a position to pay them or not. They can find out where you live, where you work, and how actively you’re spending.
The only time a company can pull your credit is when you’ve given them authorization, so removing that inquiry isn’t hard. It’s just a question of asking the right way.
Step 1: Get a recent copy of your credit report. Personally, I recommend you maintain credit monitoring so you can check your score monthly. I use www.identityiqreport.com. At only $19 a month for all 3 bureaus, they’re the cheapest I’ve found. They even provide $1M identity theft insurance at NO additional cost.
Step 2: Make a list of the creditors whose credit inquiries you want to remove. Your credit report should provide you with addresses. If not, just call the credit bureaus and ask them for their addresses. TU: 1-800-555-1212 | EX: 1 (888) 397-3742 | EQ: 1-888-202-4025
Step 3: Send each creditor a letter asking them to remove the inquiry or provide proof they were authorized to pull it.
Step 4: In some cases a creditor may respond with proof. In those cases you should carefully review their evidence. If they authorization was vague, hidden deep within the legal document’s wording, or written in such a way that it was not easily understood, then you can argue that you weren’t aware of what you were signing. You can threaten to complain to your state’s Banking Commission, the FTC, and the attorney general.
It would probably never get that far, but if you hold your ground you will likely win.
Here’s a sample letter you can use to make your case:
How to Remove Credit Inquiries1. Just cut and paste to your word doc.
2. Add your creditors contact information, your name, signature, and SSN.
3. Print and mail.
Good luck!
