As a credit expert with extensive knowledge in credit management and reporting, I understand the importance of maintaining a healthy credit score. It's crucial for securing loans, mortgages, and even employment opportunities. One of the key components that can impact your credit score is the presence of inquiries on your credit report. Let's delve into the distinction between soft and hard inquiries and the process of disputing a hard inquiry if necessary.

Soft Inquiries are those that occur when a company or individual checks your credit report for pre-approval offers, background checks, or your own personal reviews. These inquiries do not affect your credit score because they are not related to new credit applications. They are merely informational and are only visible to you, not to third-party creditors or lenders.

Hard Inquiries, on the other hand, are triggered when you apply for new credit. These can be from credit card applications, mortgages, auto loans, or any other form of credit. Hard inquiries can have a negative impact on your credit score, potentially lowering it by 5-10 points or more. This is because multiple hard inquiries in a short period can signal to lenders that you are a high-risk borrower seeking multiple lines of credit.

If you find a hard inquiry on your credit report that you did not authorize or that you believe is incorrect, you have the right to dispute it. Here's a step-by-step guide on how to proceed:


1. Identify the Inquiry: Review your credit report to locate the hard inquiry you wish to dispute.


2. Gather Evidence: Collect any relevant documents or information that can support your claim that the inquiry is incorrect or unauthorized.


3. Contact the Creditor or Bureau: Reach out to the creditor who conducted the inquiry or the credit bureau that reported it. You can do this by mail, email, or through the bureau's online dispute portal.


4. Submit a Dispute: Provide a detailed explanation of why you believe the inquiry is incorrect. Include any supporting evidence you have gathered.


5. Wait for a Response: The creditor or bureau is required to investigate your dispute. They will typically respond within 30 days.


6. Review the Results: If the inquiry is found to be invalid, it should be removed from your credit report, which may help improve your credit score.

7.
Monitor Your Credit: After the dispute, continue to monitor your credit report to ensure that all information is accurate and up-to-date.

It's important to note that not all hard inquiries can be removed. Some may remain on your report for up to two years. However, their impact on your credit score diminishes over time.

**read more >>

While soft inquiries have no effect on your credit score, a hard inquiry may pull down your score by 5-10 points. ... Here's what you can do if you wish you remove a hard inquiry on your credit report. You can dispute a hard inquiry either with the associated creditor, or with the credit bureaus.Apr 26, 2016read more >>