What is a Hard Inquiry? How Does It Affect Your Credit Score? 

A hard inquiry is when a lender studies your credit to decide whether or not to stamp “Approved” or “Rejected” on your loan or credit card application. These inquiries are a normal part of the finance world, but having too many hard inquiries at once can raise red flags for lenders and potentially ding your score. 

This guide breaks down how a hard credit check works, why it matters, and how to keep your credit looking sharp.

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What is a hard inquiry?

A hard inquiry is when a lender examines your credit history after you apply for a loan, credit card, or similar financial product. It also goes by the name hard credit check or hard credit pull. 

When you apply for a loan or credit card, the lender reviews your financial history to see if you qualify for the loan. It’s sort of like an employer checking your resume before offering you a job. The main difference? You can apply to as many jobs as you want with no downsides, but applying to too many loans can hurt your credit score. 

Having too many hard credit checks makes it look like you need credit to stay afloat…not the best look.

This only applies to hard credit checks, though. Not soft ones. Let’s break down the difference…

Hard inquiry vs. soft inquiry: Know the difference

There are two different ways that a lender can check your credit:

• Hard credit check: When a lender looks into your credit history after you apply for credit, like a loan, credit card, or mortgage.

• Soft credit check: When a lender or someone else reviews your credit history for a reason not related to a new credit application. 

So what the heck does that mean? You can think of it this way…

A hard credit check is like taking a passport photo: it’s official, documented, and filed with the powers that be. Hard inquiries usually only occur after you apply for a loan, credit card, or something similar.

A soft credit check is like taking a selfie: It’s casual, informal, and just for you. Soft inquiries usually only occur when someone is doing light research into your credit history, like a landlord performing a credit check for a rental application, an employer doing a background check, or if you decide to check your own credit report.

Feature	Hard inquiry	Soft inquiry
Purpose	A lender checks your credit because you applied for a loan or a credit card.	Someone checks your credit for a different reason (unrelated to you applying for a loan).
Impact on credit score	Can temporarily decrease your score.	Does not impact your score.
Requires authorization	Yes	No
Visible to others	Yes	No
Stays on your report for	Up to 2 years	Up to 2 years
Examples	Applying for a credit cardApplying for a mortgageApplying for a car loan.	Getting pre-approved for a loanChecking your own scoreMoving into a new apartment
Frequency consideration	Fewer than 6 in 2 years (recommended)	As many as you’d like

When do hard credit checks happen?

Hard credit checks happen after you apply for a loan or credit card, and the lender is determining whether or not to approve you.

You can expect a hard pull on your credit whenever you apply for a loan, mortgage, credit card, or similar product. But some scenarios can be a bit of a gray area. 

Here are 4 unexpected scenarios when there might be a hard inquiry on your credit:

1. Paying for a rental car with a debit card: Most car rental companies require you to pay with a credit card to cover any potential damages (like a hotel). If you want to pay with a debit card instead, they’ll probably run a hard inquiry on your credit.

2. Getting a new cell phone plan: Most cellphone providers check your credit before approving you for a contract.

3. Requesting a credit line increase: If you request a credit limit increase from your credit card provider, then they may run a hard inquiry to decide if you’re eligible. But this is only if you ask for an increase. If your lender approves a limit increase without telling you, then it’ll be treated as a soft inquiry.

4. Getting a business credit card: Certain business credit cards can require a hard credit inquiry if the card is in your name. 

If you find yourself in any of these situations, you might want to pump the brakes and reconsider. It’s usually best to avoid a hard check on your credit if it’s not completely necessary.

As a general rule of thumb, having too many hard inquiries on your credit report can drag down your score. 

How hard inquiries affect your credit score

A hard inquiry can ding your score, usually to the tune of approximately 5 points off your FICO score for up to a year. Having one or two hard inquiries is no big deal, but having multiple hard pulls can add up (in a negative way).

Multiple hard inquiries in a short period can signal to lenders that you’re overly reliant on credit to make ends meet, which they may view as a red flag. It’s classic dating logic: asking someone out once or twice is totally normal, but asking someone out 10 times in one month? That might raise some eyebrows.

Opening several new lines of credit can also impact your FICO and VantageScores, although just slightly.

Your number of “new credit” applications makes up roughly 10% of your FICO score. It’s a relatively small portion, but it still has an impact. 

Here’s how your FICO score is calculated:

1. Payment history (35% of your score)
2. Amount owed (30% of your score)
3. Length of credit history (15% of your score)
4. New credit (10% of your score) 
5. Credit mix (10% of your score)

The same goes for your VantageScore, which is calculated slightly differently:

1. Payment history (41% of your score)
2. Depth of credit (20% of your score) 
3. Credit utilization (20% of your score)
4. Recent credit (11% of your score) 
5. Balances (6% of your score)
6. Available credit (2% of your score)

Under VantagScore’s model, “recent credit” accounts for just 11% of your score. In both models, the most important factor, by far, is payment history – so be sure to stay on top of your payments!

👉 How are Credit Scores Calculated

How long does a hard inquiry stay on your report?

Hard inquiries stay on your credit report for roughly 2 years, but they only impact your credit score for about 12 months. Think of it like getting a bad grade in school…

Getting one bad grade on a quiz might nudge down your GPA, but it won’t destroy your chances of graduating. Over time, this bad grade will fade into the background as you take (and ace!) more quizzes, tests, and projects.

That said, hard inquiries aren’t necessarily bad; they’re a normal part of the finance world.

Practical strategies to minimize hard credit checks

We’ve got a few strategies that you can use to minimize hard hits to your credit report. Here are our top tips:

• Frequently monitor your credit report: The companies in charge of creating your credit report are good, but not perfect. They can (and do) make mistakes, which is why it’s a good idea to check your credit report fairly often to make sure there’s nothing out of the ordinary.

• Research and compare lenders: As a general rule of thumb, it’s usually best to research lots of different lenders before applying to any. Fewer applications mean fewer hard credit checks.

• Request prequalification or preapproval from lenders: Preapproval counts as a soft credit pull, not a hard one. If you’re applying for a new loan, getting pre-approved can help you understand if you’ll get approved, without hurting your score.

• Limit the number of new credit applications within a short period: Treat applying for new credit like calling in a favor from your friend: Save it for when you need it.

• Submit multiple loan applications at once: FICO score models count multiple applicationns as a single inquiry if you complete your rate shopping within a set period (45 days for new models, 14 for older models). If you’re shopping around for a loan, try your best to submit your applications all at once.

Handle Hard Inquiries Like a Pro

Hard inquiries might sound intimidating, but they’re just part of the game when you apply for a loan or credit card. One or two won’t wreck your score (they’re a normal part of getting approved), but having multiple in a short period isn’t the best idea.

The key is to be intentional about when and why you’re applying for credit, and to space out applications when possible. Remember, your credit score is built on a long-term track record, not a single inquiry. So keep your financial habits solid, and the occasional hard check won’t slow you down.

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