Hard inquiries: when you can dispute one and when you can't

You can dispute a hard inquiry you did not authorize. You generally cannot remove one you did authorize, even if you were turned down or never opened the account. An authorized inquiry is accurate. An unauthorized one is a possible error, and in some cases a sign of identity theft.

Hard and soft

• A hard inquiry appears when you apply for credit and the lender checks your report to decide. Hard inquiries are visible to other lenders.
• A soft inquiry appears for things like checking your own report, an employer background check you agreed to, or a company sending you a pre-approved offer. Lenders do not see soft inquiries on your report.

What the law requires

Under the Fair Credit Reporting Act, someone may get your report only for a permissible purpose. Common ones include a credit application you made, an account you already have, and a written instruction from you. A company without a permissible purpose has no right to pull your report.

When you can dispute

• You never applied to that lender and did not give permission.
• The inquiry is from a company you do not recognize, and a search of your records finds no application.
• A lender pulled your report more times than you authorized.

When you cannot

• You applied, or you let a dealer or lender shop your application.
• You authorized a check as part of signing up for a service, a lease, or a utility.
• The inquiry is accurate but you wish it were not there. It is accurate, and it will age off.

Shopping for a loan

Scoring models generally treat several inquiries for the same kind of loan, such as a mortgage or an auto loan, made within a short window as one. The length of the window depends on the scoring model. Shopping within a short span keeps its effect on your score smaller.

How to dispute an unauthorized inquiry

1. Check that you did not authorize it. Look at your email and records for any application.
2. Dispute with each bureau that shows it. Name the company and the date, and say you did not authorize the inquiry.
3. Attach what you have: a note on what you checked, or an identity theft report if one applies.
4. Contact the company that made the inquiry and ask what authorization it relied on.
5. Keep your confirmation or return receipt.

If it points to identity theft

An unauthorized inquiry can mean someone applied for credit in your name. Check your report for accounts you do not recognize. If you find any, see identity theft accounts and the section 605B block.

How long they stay

The bureaus generally keep hard inquiries for about two years. See how long negative items stay.

Sources

• Cornell LII: 15 U.S.C. 1681b (permissible purposes of consumer reports)
• myFICO: what is in your credit score
• CFPB: credit reports and scores

Next steps

• Identity theft accounts and the section 605B block

  If an account on your credit report came from identity theft, FCRA section 605B lets you ask each bureau to block it. What to gather and the steps in order.

• How to dispute a credit report error: the complete process

  The full process for disputing a credit report error yourself: get reports, mark errors, gather proof, file with each bureau, track 30 days, read the result.

• The most common credit report errors, and how to spot them

  Seven places credit report errors hide: personal information, account ownership, duplicates, payment history, balances, collections, and inquiries.