How Much & How Long Does a Hard Inquiry Affect My Credit?

How Much & For How Long Does a Hard Inquiry Affect My Credit Score?

The fact that hard inquiries affect people’s credit scores at all is a matter of significant contention for a lot of people. Usually after all, hard inquiries are only pulled of credit reports for things like mortgage approval considerations and employment in financial services related institutions. This being the case,  if a person fails to pass a job interview or qualify for a mortgage with one lender, they may find it  harder to find a job and/or qualify for a mortgage from a different provider, due simply to the adverse impact on their credit report made by the first institution they approached pulling their file. All that said, just how much does a hard inquiry affect credit score really?

What Is A Hard Inquiry On A Credit Report?

A hard inquiry on a credit report is actually made by any lender who you seek any kind of finance from who you do not have some kind of existing financial relationship with in the form of one or more active accounts. Examples of when a lender might pull a hard inquiry on your credit report include when you are taking out a car loan, or mortgage. Lenders after all, need to make sure that you are likely to repay any monies borrowed to you.

How Much Does a Hard Inquiry Affect Credit Score?

The good news is that hard inquiries usually only affect credit score by a few points at the most. However, multiple hard inquiries can have a much more significant impact and as such it is best to keep hard inquires down to one or two a year at most. Moreover, when it comes to how long inquiries stay on credit report data, it is standard practice for hard inquiries to remain on credit reports for up to two years. However, the older a hard inquiry is, the less affect it will have on your credit in the long term.

Does Checking Your Own Credit Report Result In A Hard Inquiry?

No. Checking your own credit report results in a soft inquiry which does not affect your credit score. Also, hard inquiries can only be pulled against your credit report with your permission. This being the case, you should regularly check your credit report in order to make sure that hard inquires have not been pulled on your credit file without your consent.