2/8/2023
There are several reasons why you may not recognize an inquiry on your credit report. Even if it doesn't mean someone has stolen your identity, it doesn't hurt to check to see what has happened. In some instances, this may be a sign that someone is trying to use your name to obtain financing.
You may be interested in: How to check your credit score?
Certainly, when you notice this type of record on your credit history, it's not exactly a pleasant thing. The important thing is to diligently find out what's going on to save time and avoid any immediate or subsequent impact on your score.
In order to remedy this situation, we will see what actions you can take.
Identifying the type of unauthorized credit inquiry
When you observe an unauthorized credit inquiry in your report, you should first review what kind of query it is: soft or hard. Before moving on to resolution measures, we will review these concepts:
- Soft inquiry: usually occur when a credit decision is not being made. They are the most common and are carried out by insurers, creditors reviewing existing accounts, financial institutions promoting credit products and consumers checking their files. Although they have no impact on your score, it's always good to be aware of who is making them.
- Hard inquiry: Hard inquiries happen when you're applying for financing or other financial services, such as a new credit card, a personal loan or refinancing your mortgage loan. Unlike soft inquiries, they take points off your score. If one of these pops up for no apparent reason and from a company you don't recognize, it is a red alert that you should take care of promptly.
If you want to know more, you can consult our article on the differences between soft and hard credit inquiries.
Even if you don't recognize the credit inquiry, it may be legal.
Lenders who access your credit history do so under a legal pretext. That is, the Fair Credit Reporting Act gives them a valid reason to do so.
If a hard inquiry exists as a result of fraud, you have the power to remove it. However, just because there is an inquiry that you do not recognize, does not imply that it is unauthorized or incorrect.
A very common example is departmental credit cards, since the name of the bank on the credit report is different from the name of the issuer of the plastic.
Every time you request a credit increase on a card, this can lead to a hard inquiry. Often, you may forget about them or overlook them when you review your file.
Steps to remove an unauthorized credit inquiry
If after making the appropriate inquiries you believe you have unauthorized inquiries, follow these steps to eliminate them:
Review Equifax, Experian and TransUnion reports
Although they are very similar in the information they record, there are differences in the data sources and financial institutions. Viewing the queries in these reports gives you a better context whether you are dealing with a fraudulent act.
You may be interested in: How does a bad credit score affect you?
It also allows you to identify any other records that are erroneous or should not be there.
Contact the lender immediately
To learn more about the inquiry, you should contact the company responsible for the inquiry. Contact information should appear in your credit history and you can speak to someone responsible to verify that you did in fact authorize the inquiry.
Keep in mind that some financial institutions use third parties for this process, which may also raise doubts about a legitimate action.
Notify the FTC
If you have some hard inquiries that shouldn't be there and there is a suspicion that someone has usurped your identity, you need to report it to the proper authorities. The Federal Trade Commission has this specific web page web page for reporting identity theft.
Place a fraud alert on your credit report
This measure is free and is processed with one of the credit bureaus. It lasts for 90 days and tells potential creditors, through your credit report, that they must verify your identification before granting financing in your name.
It does not prevent you from applying for financing and there is a 7-year extended fraud alert.
Dispute the credit inquiry with the credit bureaus
After notifying those involved and placing the alert, it remains to start the investigation. Keep in mind that these situations are "factual matters," so you will not be able to manage the process online.
Instead, we suggest sending a postal letter or calling the bureaus directly so they can take action on your case.
Consider freezing your credit history
This action does not allow anyone to open a new account in your name or view your file (except existing lenders or creditors, collection agencies or the government). It is a free process that is processed through Equifax, Experian and TranUnion.
English: ¿Qué hacer si tienes una credit inquiry no autorizada?