What Is a Hard Inquiry and How Does It Affect Credit?

A hard inquiry is a credit check a lender runs when you apply for new credit. It can lower your credit score by about five points and stays on your credit report for two years, according to FICO.

A hard inquiry happens when a lender or creditor checks your credit report to decide whether to approve you for new credit. You see them when you apply for a credit card, a mortgage, an auto loan or a personal loan. Hard inquiries show up on your credit report and can lower your credit score by a few points.

Think of it like this: A soft inquiry is a quick peek. A hard inquiry is a full background check tied to a real application for credit.

Key Takeaways

• A hard inquiry happens when you formally apply for new credit like a credit card, auto loan, mortgage or personal loan. It can lower your credit score by a few points temporarily.

• Hard inquiries stay on your credit report for up to two years, but FICO Scores only consider those from the last 12 months. Soft inquiries -- like checking your own credit or getting prequalified -- don't affect your score.

• Before you apply, use prequalification tools to compare offers with a soft pull, rate shop for mortgages, auto loans or student loans within a 14 to 45 day window so multiple checks count as one and skip credit applications you don't need.

Summary generated by AI, verified by MoneyLion editors

Hard Inquiry Key Facts

Here is what to know about hard inquiries at a glance:

• Score drop: A hard inquiry can lower your FICO score by about five points.

• Time on report: According to FICO, hard inquiries stay on your credit report for two years.

• Score impact window: Most hard inquiries only affect your FICO score for 12 months.

• Rate-shopping window: Multiple inquiries for the same loan type within a short period may count as one inquiry, depending on the scoring model. FICO models may use a 14- to 45-day window, while VantageScore uses a 14-day window.

• Safe limit: Try to keep hard inquiries to fewer than six in a two-year period so lenders don’t see repeated applications as a sign of higher credit risk.

Examples of Hard Inquiries

Hard inquiries happen when you apply for new credit. Common examples include:

• Mortgage applications

• Auto loan applications

• Credit card applications

• Student loan applications

• Personal loan applications

• Some apartment rental applications

• Credit limit increase requests

Hard Inquiry vs. Soft Inquiry

The main difference between a hard inquiry and a soft inquiry is whether it affects your credit score.

A hard inquiry usually happens when you apply for credit and give a lender permission to review your credit. A soft inquiry happens when you check your own credit, when a lender sends a prescreened offer or when an existing creditor reviews your account.

Soft inquiries don’t hurt your credit score, according to the CFPB.

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How Hard Inquiries Affect Your Credit Score

A hard inquiry can lower your score by a few points, but the impact is usually small. Per FICO, one additional credit inquiry generally takes fewer than five points off a FICO Score.

The impact varies based on your overall credit profile. A single hard inquiry has little effect if you have strong credit and few recent applications. It may matter more if you have a short credit history or several recent inquiries.

Hard inquiries affects lender decisions beyond the score itself. If a lender sees many recent inquiries, it may wonder whether you’re trying to take on too much debt at once.

Does Rate Shopping Count as Multiple Hard Inquiries?

No, not always. When you shop around for the same type of loan in a short time, credit scoring models may count multiple inquiries as one inquiry.

According to FICO, older scoring models use a 14-day window and newer models use a 45-day window. VantageScore uses a 14-day rolling window for certain loan types.

This rate-shopping rule generally applies to:

• Mortgages

• Auto loans

• Student loans

It doesn't apply to credit card applications. Each credit card application usually counts as its own hard inquiry.

How Long Does a Hard Inquiry Stay on Your Credit Report?

According to FICO, hard inquiries stay on your credit report for two years. FICO Scores only consider inquiries from the last 12 months.

That means an inquiry may still be visible on your credit report after it stops affecting your FICO Score.

Can You Remove a Hard Inquiry?

You usually can’t remove an accurate hard inquiry before it ages off your credit report. If you applied for credit and authorized the lender to check your report, the inquiry can remain.

Per the CFPB, you can dispute a hard inquiry you didn't authorize or one that looks wrong. You may also want to dispute an inquiry if it appears to be tied to fraud or identity theft.

You may be able to dispute a hard inquiry if:

• You don’t recognize it

• You never applied for credit with that company

• It appears to be tied to fraud or identity theft

• The same inquiry appears incorrectly

• The inquiry is listed with inaccurate information

Don't dispute accurate inquiries just because you want your score to improve. Credit report disputes are meant for inaccurate, incomplete or unverifiable information.

Should You Avoid Hard Inquiries?

You don’t need to avoid every hard inquiry. Hard inquiries are a normal part of applying for credit.

The goal is to avoid unnecessary hard pulls, especially before a major loan application. For example, opening a new credit card right before applying for a mortgage or auto loan could temporarily lower your score or raise lender concerns.

You may want to avoid new hard inquiries if:

• You’re applying for a mortgage soon

• You’re shopping for an auto loan

• Your credit score is close to a lender’s cutoff

• You already have several recent inquiries

• You’re trying to rebuild credit after missed payments

• You don’t need the new credit account

How To Reduce the Impact of Hard Inquiries

Hard inquiries don’t have to derail your credit. The best approach is to apply strategically and keep the rest of your credit profile strong.

Use Prequalification Tools First

Many lenders let you check offers with a soft inquiry before you apply. Prequalification is not guaranteed approval, but it can help you compare options without triggering a hard pull.

Read the lender’s disclosure before submitting. Look for language that explains whether the check is soft or hard.

Rate Shop Within a Focused Window

If you’re comparing mortgages, auto loans or student loans, apply within a short period. This can help multiple inquiries count as one for scoring purposes under common scoring models.

Avoid Unnecessary Applications

Only apply for credit you actually need. A hard inquiry may be small on its own, but several unnecessary applications can make your credit profile look riskier.

Check Your Credit Reports Before Applying

Review your credit reports before a major application. Look for errors, unfamiliar accounts or inquiries you don’t recognize. According to the three credit bureaus -- Equifax, Experian and TransUnion -- your credit report shows hard inquiries from the last two years.

Keep Paying Bills on Time

Payment history matters more than inquiries in most scoring models. A hard inquiry may lower your score temporarily, but missed payments can do more damage and stay on your report much longer.

Keep Credit Card Balances Low

Credit utilization can also affect your score. Keeping balances low may help offset the temporary impact of a hard inquiry.

What To Do if You See an Unauthorized Hard Inquiry

If you see a hard inquiry you don’t recognize, take it seriously. It could be a mistake, but it could also be a sign that someone tried to open credit in your name. Start with these steps:

• Review the company name and date of the inquiry

• Check whether you recently applied through a partner lender or financing platform

• Contact the company listed on the inquiry

• Check all three credit reports

• Dispute inaccurate information with the credit bureau

• Consider a fraud alert or credit freeze if you suspect identity theft

How To Dispute a Hard Inquiry

You can dispute a hard inquiry if you did not authorize it or if it looks wrong. Per the CFPB, you should start by disputing the information with the credit reporting company that lists the error and include supporting documents. The credit bureau generally has 30 days to investigate.

1. Pull your credit reports from Equifax, Experian and TransUnion to find the inquiry.

2. Contact the creditor that ran the inquiry and ask them to remove it if it was unauthorized or incorrect.

3. File a dispute with the credit bureau that lists the inquiry.

4. Send supporting documentation, like a copy of your ID, your credit report and any letters from the creditor.

5. Wait for the bureau to investigate and send you a result.

If the inquiry was unauthorized, you should also consider placing a fraud alert on your credit file.

The Bottom Line

A hard inquiry is a credit check that usually happens when you apply for new credit. It can appear on your credit report for two years and may lower your score temporarily.

One hard inquiry is usually not a major problem. But several hard inquiries in a short period can make you look riskier to lenders, especially if they’re tied to unrelated credit applications.

Before applying, use soft-pull prequalification when possible, rate shop within a focused window and keep the rest of your credit habits strong.

Sources:

• Consumer Financial Protection Bureau: What is a credit inquiry?

• Consumer Financial Protection Bureau: What is a credit report?

• Consumer Financial Protection Bureau: What is a credit score?

• Consumer Financial Protection Bureau: What kind of credit inquiry has no effect on my credit score?

• Consumer Financial Protection Bureau: What exactly happens when a mortgage lender checks my credit?

Summary generated by AI, verified by MoneyLion editors

FAQ

How long does a hard inquiry stay on your credit report? A hard inquiry stays on your credit report for two years. It only affects your FICO score for the first 12 months.

How many hard inquiries are too many? More than six hard inquiries in a two-year period is considered high by many lenders. Try to keep new credit applications spaced out so your score has time to recover.

Can a hard inquiry be removed from your credit report? Yes, but only if it was unauthorized or reported in error. You can dispute it with the creditor and the credit bureau, and the bureau generally has about 30 days to investigate.

Does a hard inquiry hurt your credit score? Yes, but the impact is usually small. One hard inquiry generally lowers your FICO score by about five points or less.

What is the difference between a hard inquiry and a soft inquiry? A hard inquiry happens when you apply for new credit and can lower your score. A soft inquiry happens when you check your own credit or a lender prescreens you, and it does not affect your score.