If you’ve checked your credit report and noticed an inquiry from Factual Data, you might be wondering what it means and how it affects your credit. In this article, we’ll explain what Factual Data does, why they appear on credit reports, and what steps you can take if you have concerns.
What Is Factual Data?
Factual Data is a third-party consumer reporting agency that provides credit verification and credit reporting services primarily for mortgage lenders and financial institutions. Lenders use their services to access an applicant’s credit history from major credit bureaus (Equifax, Experian, and TransUnion) when evaluating loan applications.
Why Is Factual Data on My Credit Report?
If you see Factual Data on your credit report, it means a lender or financial institution used their services to check your credit. Some common reasons include:
- Mortgage Applications – Mortgage lenders often use Factual Data to obtain a consolidated credit report when evaluating a borrower’s application.
- Auto Loan Applications – Some auto lenders may use Factual Data to review credit histories before approving a loan.
- Prequalification Checks – If you applied for a loan or were prequalified, Factual Data may have facilitated the credit check.
- Tenant Screenings – Some landlords and property managers use Factual Data to check potential tenants’ credit histories.
Does a Factual Data Inquiry Affect My Credit Score?
Credit inquiries fall into two categories:
- Hard inquiries – These happen when a lender checks your credit as part of a loan application. Hard inquiries can slightly lower your credit score for a short period.
- Soft inquiries – These occur when a company checks your credit for prequalification or background checks and do not affect your credit score.
If you applied for a mortgage or another type of loan, the Factual Data inquiry is likely a hard inquiry, meaning it might cause a small, temporary decrease in your credit score.
How Long Will a Factual Data Inquiry Stay on My Credit Report?
A credit inquiry typically remains on your credit report for two years, but its impact on your credit score usually fades within a few months.
Can I Remove Factual Data from My Credit Report?
If you believe the inquiry was unauthorized or incorrect, you can take these steps:
- Review Your Recent Applications – Check if you applied for a loan, mortgage, or other credit-based services.
- Dispute the Inquiry – If you didn’t authorize the inquiry, you can file a dispute with the credit bureaus:
- Contact Factual Data – If you need more details about the inquiry, you can reach out directly to Factual Data:
- Website: www.factualdata.com
- Phone: (877) 237-8310
How to Prevent Unauthorized Credit Inquiries
To protect your credit from unauthorized inquiries:
- Monitor Your Credit Reports – Use AnnualCreditReport.com to check for any suspicious activity.
- Opt Out of Pre-Screened Offers – Visit OptOutPrescreen.com to limit unsolicited credit inquiries.
- Consider a Credit Freeze or Fraud Alert – If you suspect fraud, placing a credit freeze or fraud alert can help prevent unauthorized access to your credit report. (Read more about freezes here)
Final Thoughts
Seeing Factual Data on your credit report usually means that a lender used their services to check your credit. This is a normal part of applying for a loan, but if you notice an unauthorized inquiry, take action by disputing it with the credit bureaus and contacting Factual Data directly.
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