- What is a Credit Check?
- How Long Do Credit Checks Stay on Your Report?
- How to Remove a Credit Check from Your Report
- How to Avoid Credit Checks in the Future
- How to Check for Credit Checks on Your Report
If you’re wondering when do credit checks fall off, the answer is seven years. Here’s what you need to know about credit checks and your credit report.
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What is a Credit Check?
A credit check is when a potential lender checks your credit history to see if you’re a good candidate for a loan. Credit checks are one of the many factors that lenders look at when considering a loan. They can also help you get a lower interest rate. Credit checks usually fall off your report after seven years.
What is a Soft Credit Check?
A soft credit check is a type of background check that looks at your credit history but does NOT show up as an inquiry on your credit report. Soft inquiries are used when you check your own rate or account status, when a company checks to see if you’re pre-approved for an offer, or when your information is being consumed for marketing purposes.
Unlike a hard inquiry, a soft inquiry will not have any negative impact on your credit scores—so there’s no need to worry about it “dinging” your credit. In fact, you may not even be aware that a soft check has been performed.
While soft inquiries don’t affect your credit scores, hard inquiries can cause a small temporary dip (usually around five points). So, if you’re shopping around for the best interest rate on a loan or trying to snag a new cell phone plan, it’s best to do all of that shopping within a short period of time (30 days or less) so that multiple hard inquiries only count as one on your credit report.
What is a Hard Credit Check?
A hard credit check, also known as a hard inquiry, is when a potential lender checks your credit report with one of the three major credit bureaus—Experian, Equifax or TransUnion. This type of check is usually initiated when you apply for a loan, credit card or other type of financing.
Hard inquiries stay on your credit report for up to two years, but they only factor into your FICO score for the first year. And even then, hard inquiries only have a small impact on your score—10% or less.
When you’re shopping for a loan or credit card within a short period of time (14-45 days), all those inquiries will be counted as just one. So if you’re rate shopping for a mortgage, auto loan or student loan, it’s best to do it within that window to avoid dinging your score multiple times.
How Long Do Credit Checks Stay on Your Report?
Credit checks usually fall off your report after seven years. This means that if you have a credit check from a company that you applied to seven or more years ago, it will most likely not be on your report anymore. This is because credit reporting agencies typically only keep information on your report for seven years.
Soft Credit Checks
When a lender checks your credit before approving a loan, it’s called a hard inquiry. Hard inquiries can stay on your credit report for up to two years, but they typically only impact your score for the first 12 months.
Lenders use creditworthiness to determine whether or not to approve a loan and what interest rate to offer. Hard inquiries are just one factor that goes into this determination. A high number of hard inquiries might indicate to a lender that you’re desperate for money or you’re taking on too much debt.
Fortunately, hard inquiries only count against you for 12 months. After that, they fall off your credit report completely. So if you’ve been approved for several new loans or lines of credit in the past year, don’t worry — your score will improve as those hard inquiries age.
There’s another type of inquiry called a soft inquiry, which doesn’t impact yourcredit score at all. Soft inquiries are made when companies check your credit for non-lending reasons, such as offering you a pre-approved credit card or monitoring your own credit report.
Hard Credit Checks
A hard credit check, also called a hard inquiry or hard pull, is when a lender reviews your credit report to determine if you’re a good candidate for a loan. Hard inquiries can slightly lower your credit score and stay on your credit report for up to two years. If you’re shopping for a mortgage, auto loan or new credit card, expect lenders to request your permission for a hard inquiry before they approve your application.
How to Remove a Credit Check from Your Report
Credit checks fall off your report after seven years, but there are ways to remove them before then. If you have a credit check on your report that is dragging down your score, you can dispute it with the credit bureau or ask the creditor to remove it. You can also try to negotiate with the creditor to have the credit check removed.
Request a Goodwill Adjustment
If you have a good relationship with the lender, you might be able to convince them to remove the negative item from your report as a goodwill adjustment. To do this, you’ll need to draft a goodwill letter explaining your situation and why you deserve to have the check removed. If you have any documentation to back up your claims, include that as well.
Keep in mind that lenders aren’t required to remove items from your report as a goodwill adjustment, so there’s no guarantee that this method will work. But it’s worth a try if you think you have a good case.
Request a Removal of Inaccurate Information
If you find an error on your credit report, you can file a dispute with the credit bureau to have the inaccuracies corrected. You should also contact the company that provided the information to the credit bureau to let them know about the errors. Under the Fair Credit Reporting Act (FCRA), both the credit bureau and the company that supplied the information are responsible for correcting inaccuracies on your credit report.
If you believe that your rights under the FCRA have been violated, you can file a complaint with the Consumer Financial Protection Bureau (CFPB).
Dispute the Credit Check with the CRA
If you find an unauthorized credit check on your report, you can dispute it with the credit reporting agency (CRA) that issued the report.
The CRA will then investigate the credit check and remove it from your report if they find it to be unauthorized.
You can also file a dispute with the FTC if you believe you’ve been a victim of identity theft.
How to Avoid Credit Checks in the Future
Credit checks can fall off of your report after seven years, but there are a few things you can do to avoid them in the future. You can dispute the credit check with the credit bureau, or you can take steps to avoid them altogether. Let’s take a closer look.
Use a Credit Monitoring Service
Credit monitoring services can help you keep track of your credit report and score, as well as alert you of any changes or activity that could be signs of identity theft. This way, you can keep an eye on your credit report and score without having to worry about credit checks fall off.
Place a Fraud Alert on Your Credit Report
You may want to place a fraud alert on your credit report if you suspect you are a victim of identity theft. A fraud alert can make it harder for someone to get credit in your name because it tells creditors to follow certain procedures to protect you. It also entitles you to free copies of your credit report.
You only need to contact one of the nationwide credit reporting companies to place a fraud alert on your report. That company will then contact the other two, which will place an alert on their versions of your report as well. As soon as the credit reporting company placess an alert on your report, you’re entitled to order free copies of your credit reports from all three companies. If you find errors on any of your reports, you can file a dispute and have the information removed or corrected.
When you place an initial fraud alert, you have the right to order one free copy of each of your credit reports from each of the nationwide consumer reporting companies within 60 days: Equifax, Experian and TransUnion. When you receive these reports, review them carefully for any fraudulent activity such as new accounts or inquiries that you don’t recognize. If there is fraudulent activity on any of your reports, file a dispute with each consumer reporting company and ask them to remove the inaccurate information:
-Equifax Fraud Alert P.O. Box 740251 Atlanta, GA 30374
-Experian Fraud Alert P.O O Box 9532 Allen , TX 75013
-TransUnion Fraud Alert P.O Box 2000 Chester , PA 19016
How to Check for Credit Checks on Your Report
A credit check is an inquiry into your credit history that is noted on your credit report. Credit checks are important because they help lenders determine whether or not you are a good candidate for a loan. Credit checks can also help you keep track of your credit history. However, credit checks can also be a source of frustration if you are not aware of them.
Pull Your Credit Report
The first step in checking for credit checks on your report is to pull your credit report. You can get a free copy of your report from each of the three major credit reporting agencies — Equifax, Experian and TransUnion — once every 12 months. You can also get a free copy if you’ve been denied credit in the past 60 days.
Once you have your report, go through it carefully to look for any inquiries that you don’t recognize. If you see an inquiry from a company that you don’t remember doing business with, it could be a sign of identity theft.
If you see an inquiry from a company that you did do business with, but you didn’t give them permission to run a credit check, it could be a sign that they’re violating the Fair Credit Reporting Act (FCRA). You can file a complaint with the Consumer Financial Protection Bureau (CFPB) if you think a company has violated the FCRA.
Review Your Credit Report for Inquiries
A credit check occurs when a company requests a copy of your credit report from a credit bureau, which is a type of financial institution. Credit checks are typically initiated by businesses or organizations considering offering you credit, such as a credit card issuer, a lender, or a leasing agent. When you check your own credit report or score, that’s also considered a soft inquiry and won’t impact your score.
Inquiries stay on your credit report for up to two years and can slightly reduce your overall credit score for up to one year. But don’t panic if you see an inquiry on your report — it’s not the end of the world, and it probably won’t have any significant impact on your ability to get credit.
That said, there are a few things you can do to minimize the impact of inquiries on your credit score:
· If you’re shopping around for a loan or another type of credit, do it within a 14-day period so that all the inquiries will be counted as just one. FICO® considers rate-shopping inquiries made within 14 days before scoring as just one inquiry.
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