Hi, Faith
Exfoliation will help if the ingrown hairs are shallow enough, but sometimes they can be quite deep. A hypodermic needle used not to cut but to rather fish/hook them out through the smallest puncture possible should not cause any more scarring than an injection with the same gauge needle. Done right, the break in the skin should be very small and shallow—just large enough for the hair to come through.
Anyway, I stopped plucking when I found it was causing ingrowns. I've been told that if they get infected or otherwise irritated that may in itself cause scarring. Electrolysis is much more effective although it does take more time.