You’ve just checked your credit report and noticed an inquiry you did not authorize. If you do not recognize this hard inquiry, you could potentially be at risk of fraud. You’ll want to investigate the inquiry immediately so that your credit score is not damaged in the future.
This is a summary of a hard inquiry and how to respond to an unsanctioned hard credit inquiry.
Your credit score is a crucial aspect of your financial well-being, influencing your ability to secure loans, mortgages, and even employment opportunities. Unauthorized hard inquiries on your credit report can negatively impact your score, making it essential to take swift action to address them This guide will equip you with the knowledge and steps to handle unauthorized hard inquiries effectively
Understanding Hard Inquiries
Hard inquiries, also known as “hard pulls” or “hard credit checks,” are credit checks initiated by lenders or creditors when you apply for credit products like loans, credit cards, or mortgages. These inquiries remain on your credit report for two years, potentially lowering your credit score, especially if multiple inquiries occur within a short period
Identifying Unauthorized Hard Inquiries
Regularly monitoring your credit report is crucial for detecting unauthorized hard inquiries You can access your credit report for free once every 12 months from each of the three major credit bureaus: Equifax, Experian, and TransUnion Additionally, services like Credit Karma and Credit Sesame offer free credit monitoring tools.
If you notice unfamiliar hard inquiries on your credit report, it’s essential to act promptly. These inquiries could indicate potential fraud attempts, where someone is trying to use your identity to obtain credit.
Steps to Take When You Find an Unauthorized Hard Inquiry
1. Contact the Creditor:
Reach out to the company that initiated the unauthorized inquiry. Explain that you did not authorize the credit check and request them to remove it from your credit report. If it was a reporting error, they should contact the credit bureaus to have it removed.
2. Report the Fraud:
Use the Federal Trade Commission’s website to file an identity theft complaint form and affidavit if you believe someone is using your identity to apply for loans. Submit these forms to banks, creditors, major credit bureaus, and the police.
3. Freeze Your Credit:
To have your account put on hold and have your credit frozen, report the possible fraud to the major credit bureaus. This restricts access to your credit reports, preventing further unauthorized credit checks.
4. Place a Fraud Alert:
Get in touch with a major credit bureau to set up a fraud alert for 90 days on your account. Because of this, before granting credit in your name, potential creditors must confirm your identity. The alert will be shared with the other two credit bureaus by the credit bureau you contact.
5. Dispute the Inquiry:
Call or write to the credit bureau to dispute the unauthorized hard inquiry. It is fairly easy to remove the inquiry if you have evidence that it is fraudulent. Disputing the company’s claim that it was valid, however, may be more difficult.
6. Consider Legal Assistance:
If you’re certain the inquiry was unauthorized and shouldn’t be on your report, but the company refuses to remove it, consult a credit report attorney. They can help you legally dispute the unauthorized inquiry under the Fair Credit Reporting Act (FCRA).
Don’t Ignore Unauthorized Hard Inquiries
Ignoring unauthorized hard inquiries on your credit report can have serious consequences. It can open the door to further fraudulent activity and damage your credit score, making it difficult to secure loans and other financial products. By taking prompt action, you can protect your credit health and prevent further harm.
Additional Resources
- Federal Trade Commission: https://consumer.ftc.gov/features/scam-alerts
- Equifax: https://www.equifax.com/personal/
- Experian: https://www.experian.com/
- TransUnion: https://www.transunion.com/
By following these steps and utilizing the provided resources, you can effectively handle unauthorized hard inquiries and safeguard your credit score. Remember, vigilance and prompt action are key to protecting your financial well-being.
What Is a Hard Inquiry?
Hard inquiries, sometimes referred to as “hard credit checks” or “hard pulls,” are credit inquiries that a financial institution performs on your behalf prior to granting you a loan. When you apply for a credit card, auto loan, mortgage, student loan, personal loan, or credit card, these inquiries frequently happen and need your permission.
A single hard inquiry for a credit card is unlikely to have much of an impact on your credit score, but multiple inquiries could be detrimental. On the other hand, if you ask a financial institution a lot of questions (especially in a short period of time), it may appear that you are not very wealthy. Within two years of the hard credit inquiry appearing on your credit report, any negative effects on your credit score will either go away or become less pronounced.
How Do You Handle Unauthorized Hard Inquiries?
You should act right away if you believe there has been an unauthorized inquiry on your credit report because hard credit checks can have a negative impact on your credit history. Here are some things you can do when this happens:
You can get in contact with the business that made the inquiry request and ask them to provide verification that the inquiry was legitimate. Should it have been a reporting error, you could ask them to get it taken down from your credit report by contacting the credit bureaus.
Use the Federal Trade Commission’s online identity theft complaint form and affidavit if you believe someone is attempting to apply for a loan using your identity. Then, you can send these forms to banks, creditors, major credit bureaus, and the police.
You can put a credit freeze on your account and prevent access to your credit reports until the issue is resolved by reporting the possible fraud to the major credit bureaus.
Did you give anyone Permission to pull your Credit Reports??
FAQ
What happens when someone pulls your credit?
Is it illegal for someone to pull your credit report without permission?
How do you fight a credit pull?
What should I do if my credit report has been pulled?
Contact the company that made the hard inquiry. It’s possible that your credit report was pulled by mistake, so the first step is to check with the company that pulled it. You can ask them for proof that you authorized the inquiry; if they can’t provide it, you can then ask them to correct the mistake with the credit bureaus.
How do I find out who pulled my credit?
You can find out who pulled your credit by checking your credit report. Each time any lender, business or individual checks your credit, a hard or soft inquiry is listed on your report, noting who made the request, the date of the request, and the entity’s contact information.
Who can pull my credit report?
Not just anyone can pull your credit reports. The Fair Credit Reporting Act (FCRA) — in conjunction with other laws — was put into place in 1970 and amended over the years in order to protect consumers by limiting who can check your credit report and how they can use that information.
Can someone pull my credit report without permission?
But if you think that someone’s pulled a hard inquiry of your credit without permission, you’ll want to act quickly to make sure that it’s taken care of correctly — it could be a sign of fraud or identity theft. Who can check my credit? Who can check my credit? Not just anyone can pull your credit reports.