How to Handle an Unauthorized Credit Inquiry

If you spot an unauthorized credit inquiry on your credit report, first contact the creditor the inquiry is from to get more information and confirm you didn’t actually authorize it. If the inquiry is indeed unauthorized, and not something you just didn’t recognize initially, you should dispute it with the credit bureaus. You should also consider freezing your credit reports to prevent fraudulent accounts from being opened.

A credit inquiry is a record of someone checking your credit report. Seeing an unfamiliar inquiry doesn’t necessarily mean that your identity has been compromised, but it’s nevertheless important to make sure. An unauthorized inquiry could be the first sign of a fraudster seeking to take out credit in your name, and getting to the bottom of things as quickly as possible will save you a lot of time, hassle, and potential credit score damage in the future.

5 Steps to Take After an Unauthorized Credit Inquiry

1. Contact the Creditor That Made the Inquiry
2. Review Your Three Major Credit Reports
3. Dispute Inquiries You Don’t Recognize With the Respective Credit Bureau(s)
4. Report Any Identity Theft to Authorities
5. Place a Security Freeze (and Fraud Alert) on All Three Reports

1. Contact the Creditor That Made the Inquiry  

The first step in investigating an unrecognized credit inquiry should always be to call the creditor that has been poking around your reports. Speaking with them may help you realize that you actually did authorize the inquiry or get clues about how this fraud is being perpetrated.

There are many reasons why you may not initially recognize an inquiry that you authorized. For example, you may have applied for a store credit card and the bank issuing the card is listed on your credit report instead of the store. Or you might not have taken in that applying for a job, an apartment or a higher credit limit would result in an inquiry.

If the credit inquiry is not at all familiar to you and you suspect that it is fraud, make sure to take detailed notes during this call, including the name, ID number (if any), and direct phone number of the customer service representative or fraud specialist that you talk to.

2. Review Your Three Major Credit Reports 

You already have your TransUnion credit report from WalletHub, and while Experian and Equifax credit reports contain largely the same information, there are some differences in terms of their data sources and the financial institutions that use them. Seeing how, and if, this unauthorized inquiry is listed on your other reports may provide additional context about whether it’s fraudulent. This will also give you the opportunity to thoroughly review each of your files for other suspicious listings.

You can order your Experian and Equifax credit reports for free through the government-sponsored website AnnualCreditReport.com.

3. Dispute Inquiries You Don’t Recognize With the Respective Credit Bureau(s)  

If you find suspicious inquiries on any of your reports, follow the respective bureau’s steps for reporting and disputing the issue (see below). The credit bureau will then send that creditor a request for verification. "Generally within 30 days, the source must verify your account data," Michael Bruemmer, head of global data breach resolution at Experian, told WalletHub.

The table below details how you can contact each of the credit bureaus.

4. Report Identity Theft to Authorities

If it seems like the unauthorized credit inquiry is due to someone stealing your information and pretending to be you, you should report the identity theft to the Federal Trade Commission and your local police department.

File an Identity Theft Complaint With the FTC

You can file a formal identity theft complaint with the Federal Trade Commission through its official website for identity theft victims, IdentityTheft.gov. Once you have submitted your complaint, the FTC will generate an Identity Theft Affidavit. It is very important that you save and print this document, as it can only be viewed once through the online system. The FTC Identity Theft Affidavit is a critical supporting document for investigations into suspected identity theft.

File A Report With Your Local Police Department

Bring a copy of your FTC Identity Theft Affidavit to your local police department, along with a government-issued ID, proof of your address (e.g., a mortgage or utility bill), and any additional documentation you have concerning the unauthorized inquiry. This will enable you to file an official police report, which, together with your FTC affidavit, will comprise your Identity Theft Report.

People often are hesitant to report a seemingly minor sign of identity theft to the police, but it’s important to remember that taking this step — which may be as simple as filling out and submitting a form at the station — is more of a procedural milestone than the beginning of an active investigation by law enforcement.

"That’s when people start taking you seriously," said credit expert John Ulzheimer, who has worked with both Equifax and FICO. "If you are willing to lie to a police officer and file a false police report, that’s a criminal act. So that seems to be one of the dividing lines between people who are truly a victim and people who are just pretending to be victims just to get stuff removed from their credit reports."

5. Place a Security Freeze (and Fraud Alert) on All Three Reports

A security freeze completely prevents most parties from viewing your credit report, though exceptions do exist, such as for the government, existing creditors, collection agencies, creditors who prescreen you for offers, and yourself. You must contact TransUnion, Experian, and Equifax individually to put a freeze on each report, but freezing and unfreezing your reports is now free for everyone.

"It is the best, cheapest, and most effective thing that someone can do," said Steven J. Weisman, a senior lecturer at Bentley University and author of numerous books about identity theft.

Another thing you’ll want to do is ask TransUnion to put a fraud alert on your credit report. TransUnion will be legally required to notify the other two major bureaus, and you will receive a confirmation letter from each one after the alert has been added to your file. It will remain in place for one year, even if you lift the security freeze on a report, warning potential creditors that you might be a victim of identity theft.

What To Do When You Can’t Get Rid of an Unauthorized Credit Inquiry

Send a Certified Letter to the Creditor

If the creditor responsible for the unauthorized inquiry is not helpful when you first contact them for information, and your dispute with the credit bureau is not successful, draft a letter asking for written proof of the authorization the creditor received to make the inquiry, and send it via certified mail with a "return receipt requested." You can customize this sample letter from the FTC with your specific case details.

Make sure to include a copy of your FTC affidavit and police report (i.e., your Identity Theft Report). The creditor may not be legally compelled to investigate the issue, but a police report and FTC affidavit could be enough to get their attention. Besides, this letter and any resulting response from the creditor will be useful documentation to have if you decide to hire an attorney and pursue any sort of legal action. So, make sure to copy and save all correspondence.

File a Complaint With the CFPB

You may want to file a complaint with the Consumer Financial Protection Bureau against both the creditor and the credit bureau in question, as well as consider hiring an attorney. The CFPB will submit your complaint to the creditor and the credit bureau, and the CFPB will send you their response when they hear back from the companies.

Limit the Damage of Potential Identity Theft

An unauthorized inquiry should raise suspicions about the security of your personal and financial information, so you may want to consider taking additional steps to ensure this case of suspected identity theft does not spread. To learn more, check out WalletHub’s guides on identity theft and the steps you should take following identity theft.