Hard Inquiry
A hard inquiry is a type of credit report inquiry that is initiated by a lender or other credit grantor, typically in response to a specific loan application or credit report dispute.
Key Characteristics of Hard Inquiries:
- Initiated by a lender or credit grantor: The inquiry is initiated by a lender or other credit grantor as part of the credit application process or in response to a credit report dispute.
- Visible to all three credit bureaus: The inquiry is visible to all three credit bureaus (Experian, Equifax, and TransUnion) and can be seen by any lender or creditor who requests a credit report.
- Can impact credit score: Hard inquiries can temporarily lower a credit score, typically by 1-10 points.
- May remain on report for up to two years: Hard inquiries typically remain on a credit report for up to two years.
- Can be triggered by various events: Hard inquiries can be triggered by applying for a new credit card, loan, or credit line, or by disputing an error on your credit report.
Examples of Hard Inquiries:
- Applying for a new credit card
- Applying for a loan
- Signing up for a credit monitoring service
- Resolving a credit report dispute
Impact on Credit Score:
Hard inquiries can temporarily lower your credit score because they indicate that you are applying for new credit or have recently opened new accounts. This can be seen negatively by lenders and can impact your score, although the impact usually fades over time.
Note:
Hard inquiries are not the same as soft inquiries, which are initiated by you or a pre-screened lender. Soft inquiries do not affect your credit score.
FAQs
What is a hard inquiry?
A hard inquiry, also known as a hard pull, occurs when a financial institution checks your credit report as part of a lending decision. This typically happens when you apply for a loan, mortgage, or credit card. Hard inquiries can slightly lower your credit score.
How damaging is a hard inquiry?
A single hard inquiry usually reduces your credit score by a few points, typically around 5 points or less. While the impact is minor, multiple hard inquiries in a short period can have a more significant effect, indicating higher credit risk.
How long do hard inquiries last on a credit report?
Hard inquiries stay on your credit report for up to 2 years, but their impact on your credit score diminishes after a few months. In most cases, the effect of a hard inquiry on your score lasts for about 12 months.
Can you remove hard inquiries from your credit report?
Yes, you can dispute hard inquiries if they were unauthorized or fraudulent. If the inquiry was legitimate (for example, from a loan application), it cannot be removed, and you must wait for it to naturally fall off after 2 years.
Do multiple hard inquiries count as one?
In some cases, multiple hard inquiries for the same type of loan (like a mortgage or car loan) within a short period (typically 14 to 45 days) are treated as a single inquiry by credit scoring models. This is to allow consumers to shop for the best rates without being penalized.
