The inquiry itself is not a late payment or debt. It is a record that a lender or another permitted party accessed the credit file for a credit-related decision.
Key Takeaways
- Applications commonly trigger hard inquiries: Credit cards, loans, refinancing, and some credit-limit requests can involve a hard pull.
- Scores can move: The effect depends on the model and the rest of the credit profile.
- Soft inquiries are different: Checking your own report and many account reviews do not affect credit scores.
- Rate shopping can receive special treatment: Certain scoring models group qualifying loan inquiries made within a shopping window.
When Does a Hard Inquiry Happen?
Lenders commonly request a credit report after an application for a credit card, mortgage, auto loan, personal loan, refinance, or another credit product.
A mortgage preapproval can also involve a hard inquiry. Merely asking a lender about advertised rates, without authorizing a credit application, is different.
How Hard Inquiries Affect Credit Scores
Recent applications can indicate higher borrowing risk, so major scoring models can factor hard inquiries into the score. The impact of one inquiry is often modest, but the exact point change cannot be predicted for every consumer.
Thin credit files, multiple unrelated applications, and other recent account openings can make inquiry activity more significant than it would be in a long, stable credit history.
Hard Inquiry vs. Soft Inquiry
| Hard inquiry | Soft inquiry |
|---|---|
| Commonly tied to an application for new credit | Can occur for account review, prescreening, employment screening, or a consumer’s own report request |
| Can affect credit scores | Does not affect credit scores |
| Visible to parties that obtain the consumer report | Generally visible only to the consumer on the report |
How Long Does a Hard Inquiry Stay on a Credit Report?
Hard inquiries can remain visible on a credit report for a period even after their scoring impact has diminished. Scoring models do not necessarily use the inquiry for the entire time it appears.
The presence of an inquiry should therefore be separated from how long a particular score model considers it in the calculation.
What Is Rate Shopping?
Some scoring models recognize that consumers compare offers for mortgages, auto loans, and certain other installment loans. Multiple qualifying inquiries within a defined shopping period can be treated as a single inquiry for scoring purposes.
The exact window varies by scoring model, so applications should be concentrated rather than spread unnecessarily over a long period when rate shopping.
Can You Check Your Own Credit Without a Hard Inquiry?
Yes. Requesting or reviewing your own credit report is a soft inquiry and does not lower your credit scores.
Many educational credit-score services also use soft inquiries, although the score shown can differ from the model a future lender uses.
Can an Unauthorized Hard Inquiry Be Disputed?
A business generally needs a permissible purpose under federal credit-reporting law to obtain a consumer report. An unfamiliar inquiry should be investigated to determine whether it resulted from an application, an authorized account action, identity theft, or an error.
Consumers can dispute inaccurate credit-report information with the credit reporting company and, when appropriate, the company that furnished or requested the information.
Frequently Asked Questions (FAQs)
Does checking your own credit cause a hard inquiry?
No. Reviewing your own credit report is a soft inquiry and does not affect your credit scores.
Does one hard inquiry ruin a credit score?
Generally no. One inquiry often has a limited effect, although the impact depends on the scoring model and credit profile.
Can several mortgage inquiries count as one?
Qualifying mortgage rate-shopping inquiries can be grouped for scoring under certain models when they occur within the model’s shopping window.