What Is a Hard Inquiry?

What is a hard inquiry?

A hard inquiry, or a hard pull, usually happens when lenders check your credit report as part of a credit application — for example, when you apply for a personal loan, finance a car or rent an apartment. By taking a look at your credit report via a hard pull, lenders can decide whether to approve your application and what terms to offer.

Because hard inquiries on your credit report show that you're potentially looking for new credit, they can impact your credit score. Having too many in a short period could make you look like a risky borrower.

Hard inquiries are different from soft inquiries in how they impact your credit. Soft inquiries happen when your credit is checked for informational purposes — for example, when you check your own credit score or get prequalified for a loan.

Since soft inquiries are more of a background check than a full credit review, it typically won’t hurt your score and won’t show up to lenders.

How do hard inquiries affect your credit score?

According to Experian, one of the three major credit bureaus, a single hard inquiry typically results in a decrease of fewer than five points on your FICO score, and this impact can remain for up to a year. “The impact varies by individual credit profile,” said Ricardo Mendiola, owner of MSI Credit Solutions, a credit repair company. “If you have limited credit history, you may see larger drops.”

Though hard inquiries will appear on your credit report for two years, they stop directly affecting your credit score after one year. That said, if you apply for several different types of credit within a short period, those inquiries could have a bigger impact because too many at once can make lenders think you’re a risky borrower.

Don’t stress about rate shopping! Multiple pulls in a short window typically count as a single inquiry.

It’s worth noting that credit scoring models treat rate shopping differently. If you're applying for the same type of loan, requests will typically only count as a single inquiry if they’re made within 14 to 45 days of each other, according to the Consumer Financial Protection Bureau.

» MORE: What do lenders mean by “good” credit?

How long do hard inquiries stay on your credit report?

Hard inquiries generally stay on your credit report for two years. That doesn’t mean your score will be dragged down the entire time; hard inquiries only affect your credit score for the first 12 months. After that, they’re just listed for recordkeeping.

The biggest impact comes right after the inquiry is made. Most scoring models weigh new credit activity more heavily, so if you’re planning a big purchase or want the best rate possible, try to limit unnecessary applications in the months before.

Even though a single hard inquiry isn’t a big deal, it can become an issue if you have multiple within a short timeframe. If you’re shopping for credit cards, loans and financing back-to-back, lenders may assume you’re overextending yourself and consider you a high-risk borrower. “One to two hard inquiries annually is normal, but more than six can start to raise concerns,” said Mendiola.

To soften the impact hard pulls have on your credit, space out your applications whenever you can. And remember, some inquiries won’t count against you if they fall within the rate-shopping window for the same loan type.

» LEARN: Tips that will improve your credit

Hard inquiry vs. soft inquiry

Hard and soft inquiries are both credit checks, but they work differently. A hard inquiry is triggered when you apply for new credit and the lender pulls your full credit report to evaluate your risk. This affects your credit score, even if only slightly.

On the other hand, soft inquiries don’t drop your credit score since you're not actually applying for credit. These happen when you pull your own credit report using a monitoring service or get prequalified for a loan. Soft inquiries won't show up on credit reports that lenders or others can see, but you'll still be able to view them on your personal report.

The bottom line? Soft inquiries are harmless, but be careful about too many hard inquiries since they can hurt your FICO score.

Examples of soft inquiries

Soft inquiries are common and usually happen without you even realizing it. A typical example is when you check your own credit score through a site like Credit Karma or directly through your bank.

You’ll also get a soft inquiry when you prequalify for a loan or credit card. Lenders do a basic credit check to estimate whether you’re a good match before inviting you to apply. Since it’s not a full credit pull, your score won’t be affected.

Another example of a soft inquiry is when employers run a background check on you, especially if you’re applying for a job that involves financial responsibilities. These requests show limited credit info and aren’t seen by lenders or factored into your score.

Can you remove unauthorized credit inquiries?

If you find an unauthorized hard inquiry on your credit report, you can often get it removed, especially if it’s the result of identity theft or a reporting error. Start by contacting the company that made the inquiry. If it turns out to be a mistake or fraud, file a dispute with the credit bureau to have it removed.

To prevent further unauthorized activity, you’ll want to place a fraud alert on your credit file. This notifies future lenders that you’ve been the target of fraud and prompts them to verify the applicant’s identity before extending credit.

The most straightforward way to catch these issues early is by monitoring your credit regularly. You can do so by getting a free report from annualcreditreport.com and setting up alerts through credit monitoring services so you’re notified whenever a new inquiry shows up.

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