Can Credit Enquiries Be Removed From Your Credit Report in Australia?

If you have applied for several loans, credit cards or other forms of finance, you may notice a list of credit enquiries on your credit report.

For some people, this comes as a surprise. You may have decided not to proceed with the finance, been declined, or simply filled in an application while comparing options.

The important thing to understand is that an enquiry does not disappear simply because you never received the credit.

Some enquiries can be challenged and corrected. Others are legitimate records of an application and will remain on your credit report for the normal reporting period.

What is a credit enquiry?

A credit enquiry can be recorded when a credit provider checks your credit report as part of an application for credit.

Depending on the application, the enquiry may contain information such as the date you applied, the type of credit, the credit provider, your role in the application and the amount of credit requested.

Credit enquiries can arise from applications for products such as home loans, personal loans, credit cards, car finance and other forms of credit.

The enquiry records the fact that an application was made. It does not necessarily mean the application was approved.

How long do credit enquiries stay on your credit report?

A credit enquiry generally remains on an Australian credit report for five years.

This applies even if the lender declined your application.

It can also remain if you were approved but ultimately decided not to proceed.

That is why someone can have several enquiries on their credit report without having several active credit accounts.

The enquiry and the eventual outcome of the application are separate things.

Do credit enquiries affect your credit score?

They can.

Credit scoring models consider a range of information contained in your credit report, and applications for credit can form part of that assessment.

Several credit applications made within a relatively short period may therefore affect a credit score and may also be something a lender considers when assessing a new application.

That does not mean one enquiry will automatically cause a poor credit score or prevent you from being approved.

Your overall credit profile matters.

Repayment history, existing accounts, defaults, other adverse information and many other factors can also contribute to how your creditworthiness is assessed.

What is the difference between a hard enquiry and a soft check?

This distinction is worth understanding.

A hard credit enquiry generally occurs when a credit provider accesses your credit report as part of assessing an application for credit. This type of enquiry can appear on the report seen by other credit providers and may influence your credit score.

A soft credit check is different.

For example, checking your own credit report does not create the same type of application enquiry that a lender sees when assessing you for credit.

This means you should not avoid checking your own credit report because you are worried that simply looking at it will damage your score.

Regularly reviewing your report can actually be useful because it gives you an opportunity to identify information you do not recognise.

Can a legitimate credit enquiry be removed?

Generally, no.

If you genuinely applied for credit and the enquiry was correctly recorded, you cannot normally have it removed simply because you would prefer it not to appear.

Moneysmart specifically notes that applications for credit can remain on a credit report for five years and that correct information cannot simply be changed or removed because it is negative.

This is an important point when considering any service promising to clean a credit file.

There should be a genuine reason for challenging an enquiry.

When might a credit enquiry need to be corrected?

An enquiry may deserve investigation if there is reason to believe the information recorded on your credit report is incorrect.

For example, you might see an enquiry from a lender you do not recognise.

You might find an enquiry connected with an application you never made.

The same application may appear to have been recorded incorrectly more than once.

The date, credit provider or other details may be wrong.

An enquiry may also be connected with fraud or identity theft.

Australian credit reporting rules require credit related personal information to be accurate, current, complete and relevant.

If an enquiry does not accurately reflect what happened, you have the right to ask for the information to be investigated and corrected.

Whether that results in the enquiry being changed or removed depends on the individual circumstances.

What if I only asked for a quote?

This is where the details become particularly important.

There is a difference between asking a general question about finance and actually making an application that results in a credit provider accessing your credit report.

If you believe you only requested information or a quote but later discover a formal credit enquiry on your report, it may be worth finding out exactly what occurred.

Look at any forms you completed, electronic acknowledgements, emails and correspondence from the broker or credit provider.

Do not assume an enquiry must be invalid simply because you did not eventually accept the finance.

The question is what actually occurred when the enquiry was made.

What if a broker submitted several applications?

If you used a broker and several enquiries appear, start by finding out which applications were actually submitted.

There can be legitimate circumstances where more than one credit provider considers an application.

However, if your report contains enquiries you were not expecting, it is reasonable to ask for an explanation and review what authority or application information was provided at the time.

Each enquiry should be considered on its own facts rather than assuming that every enquiry connected with a broker is either automatically valid or automatically removable.

Can I dispute a credit enquiry myself?

Yes.

You do not need to pay a credit repair company simply to ask for incorrect information on your credit report to be corrected.

The Office of the Australian Information Commissioner recommends contacting the relevant credit provider where possible.

You can also request a correction through a credit reporting body.

If the organisation receiving your request needs information from another organisation involved in the listing, the Australian correction system allows them to consult with each other when dealing with the request.

There is no charge for making a correction request.

If the information is found to be incorrect, reasonable steps must be taken to correct it.

What should I do if I do not recognise an enquiry?

Start by obtaining your credit report and looking carefully at the name of the organisation, the date and the type of credit shown.

Sometimes a trading name on a credit report may be different from the business name you remember dealing with, so an unfamiliar name does not automatically mean the enquiry is fraudulent.

Check your emails, loan applications and correspondence around the date of the enquiry.

If you still cannot identify it, contact the credit provider and ask for information about the application associated with the enquiry.

If you believe the enquiry resulted from identity theft or information being incorrectly attributed to you, say this clearly when requesting an investigation.

What happens if my correction request is rejected?

If the credit provider or credit reporting body does not agree that the information is incorrect, it should explain its decision and provide information about available complaint options.

Depending on the circumstances, the matter may be able to be taken through an appropriate external dispute resolution process such as the Australian Financial Complaints Authority.

Privacy related credit reporting issues may also fall within the role of the Office of the Australian Information Commissioner.

The correct next step depends on what is being disputed and which organisation is responsible for the information.

Should I remove enquiries before applying for another loan?

The first question should not be how many enquiries can be removed.

The better question is whether the enquiries on your report are accurate.

If they are legitimate records of applications you made, they generally remain for the normal reporting period.

If something looks incorrect, investigating it before making additional credit applications can make sense.

It can also be helpful to understand the rest of your credit report before continuing to apply for finance.

Repeatedly submitting new applications without understanding why previous applications were unsuccessful may simply result in additional enquiries being recorded.

How can A OK Credit Repair help?

At A OK Credit Repair, we can review the enquiries appearing on your credit report and the circumstances surrounding them.

The purpose of the assessment is to identify whether there appears to be a genuine basis to investigate or challenge an enquiry.

We do not assume that every enquiry can or should be removed.

If the information appears to be legitimately recorded, we believe it is important to be realistic about that before you proceed with a paid service.

If there appears to be a reasonable basis for a dispute, we can explain the next steps and the information that may be relevant to the matter.

Need help understanding the enquiries on your credit report?

If you have enquiries you do not recognise or are unsure whether the information on your credit report is correct, A OK Credit Repair offers free initial assessments.

We can review your credit report and the circumstances surrounding the enquiries before discussing whether there appears to be a reasonable basis to proceed.

Email info@aokcreditrepair.com.au or call 0433 707 749 to speak.

Independent information

You can also find free information about credit reports, credit enquiries and your correction rights through the Office of the Australian Information Commissioner and Moneysmart.

Equifax also provides information explaining how credit enquiries appear on a credit report and the difference between hard and soft credit checks.

This article contains general information only. Individual circumstances vary and the information should not be treated as legal or financial advice.