When you apply for a credit card, loan, or even some rental or job applications, you might notice a new entry on your credit report labeled “hard inquiry.” Many people panic when they see this, assuming their score will drop dramatically — but that’s not always the case.
Hard inquiries are a normal part of the credit process, and understanding how they work can help you protect your credit score while still taking steps toward your financial goals.
What Is a Credit Inquiry?
A credit inquiry happens anytime someone checks your credit report. There are two main types: soft inquiries and hard inquiries.
Soft Inquiries occur when your credit is checked for non-lending purposes — for example, when you review your own credit report, when a company pre-approves you for an offer, or when an employer conducts a background check. Soft inquiries do not affect your credit score.
Hard Inquiries, on the other hand, occur when you apply for new credit and a lender reviews your credit file to make a lending decision. Hard inquiries can slightly impact your credit score, but usually only for a short period of time.
How Hard Inquiries Affect Your Credit Score
A single hard inquiry typically lowers your score by fewer than five points up to ten or more points — sometimes not at all, depending on your credit profile. The impact is temporary, and most hard inquiries fall off your credit report after two years.
However, too many hard inquiries within a short period can suggest to lenders that you’re taking on new debt or facing financial strain, which can make you appear riskier as a borrower.
Credit scoring models like FICO and VantageScore take these factors into account:
FICO typically counts inquiries from the last 12 months when calculating your score.
VantageScore considers them for 24 months, but their impact diminishes quickly.
When Multiple Inquiries Don’t Hurt You
If you’re shopping for a mortgage, auto loan, or student loan, multiple inquiries made within a short window — usually 14 to 45 days — are treated as a single inquiry for scoring purposes.
This rule exists to allow rate-shopping without penalty. So, if you apply for car loans with three lenders in one week, your score won’t take three separate hits.
However, this rule generally doesn’t apply to credit card applications. Each card application counts as a separate inquiry, which is why applying for several cards in a short period can lower your score more noticeably.
When Hard Inquiries Really Matter
Hard inquiries matter most in the following situations:
Applying for Multiple Credit Cards or Personal Loans at Once
Too many inquiries in a short span can make it look like you’re desperate for credit.During Mortgage or Auto Loan Underwriting
Lenders reviewing your application might question frequent recent inquiries, even if they’re not directly related to your loan.If You Have a Thin Credit File
If you have little credit history, each inquiry can have a bigger proportional effect.
How to Limit the Impact of Hard Inquiries
Only apply for credit you need. Avoid applying just for promotional offers or curiosity.
Group rate-shopping within a short period. When comparing loan offers, apply within the same 2–4 week window.
Check your own credit freely. Pulling your own report is always a soft inquiry.
Monitor your reports regularly. Ensure that every hard inquiry listed was authorized by you.
If you see an inquiry you don’t recognize, it could be a sign of fraud or identity theft — and you should dispute it immediately.
How to Dispute Unauthorized Hard Inquiries
You have the right to dispute any unauthorized or inaccurate inquiry under the Fair Credit Reporting Act (FCRA).
Write to the credit bureau where the inquiry appears (Equifax, Experian, or TransUnion).
Include identifying information (name, address, date of birth, last 4 of SSN).
State clearly that the inquiry was not authorized and request its removal.
Send your dispute by certified mail and keep copies of all correspondence.
The credit bureau must investigate your dispute and remove any inquiry that cannot be verified as authorized.
Bottom Line
Hard inquiries are often misunderstood. While they can have a small, temporary effect on your credit score, they’re rarely something to fear. The key is knowing when they matter, monitoring your reports regularly, and avoiding unnecessary applications.
If you find inquiries or accounts you didn’t authorize — or if credit bureaus fail to remove inaccurate information — contact The Credit Attorney. We can help investigate, enforce your rights under the Fair Credit Reporting Act, and ensure your credit report accurately reflects your true history.
