How to Dispute a Credit Inquiry

Disputing a credit inquiry can seem daunting, but with a strategic approach, you can resolve inaccuracies effectively and protect your credit score. To begin, it's crucial to understand what a credit inquiry is and how it can impact your credit report and score. There are two main types of credit inquiries: soft inquiries and hard inquiries. Soft inquiries do not affect your credit score and typically occur when you check your own credit report or a potential employer checks your credit. Hard inquiries, on the other hand, can impact your credit score and usually happen when you apply for a credit card, loan, or mortgage.

The first step in disputing a credit inquiry is to obtain a copy of your credit report from all three major credit bureaus: Equifax, Experian, and TransUnion. Review your reports carefully for any unfamiliar or unauthorized inquiries. If you find an inquiry that you did not authorize, it’s essential to act promptly.

The dispute process starts by contacting the credit bureau that reported the incorrect inquiry. You can do this online, by mail, or by phone. Provide a clear and concise explanation of the error and include any supporting documentation that proves the inquiry was unauthorized. When disputing by mail, it is advisable to send your dispute via certified mail with a return receipt to ensure it is received.

Once the credit bureau receives your dispute, they are required by law to investigate it. This process typically takes 30 days. During this investigation, the credit bureau will contact the creditor that made the inquiry to verify its legitimacy. If the creditor cannot provide evidence that you authorized the inquiry, it will be removed from your credit report.

If the credit bureau resolves the dispute in your favor, they will send you a copy of your updated credit report showing the removal of the incorrect inquiry. However, if the dispute is not resolved to your satisfaction, you have the right to appeal the decision. You can also add a statement to your credit report explaining the dispute and its outcome.

It’s important to monitor your credit reports regularly and maintain accurate records of any disputes and their resolutions. Additionally, keeping an eye on your credit score can help you catch any other potential issues early. If you’re unable to resolve the dispute on your own, consider seeking assistance from a credit repair professional who can offer additional guidance and support.

By understanding the process and taking timely action, you can ensure that any unauthorized credit inquiries are removed from your credit report, thereby protecting your credit score and financial health.