How long do Hard Inquiries Stay on your Credit Report
Have you wondered how long do hard inquiries stay on your credit report? Most people don’t know how much a hard inquiry affects their financial life. Is it something to brush off, or is it an essential element to moving forward in your finances? This article will walk you through what a hard inquiry is, how much it affects your credit score, and how long it will be on your credit report.
What is a hard inquiry?
A hard inquiry is a credit check pulled by a credit card issuer or a lender. They use it to see how much of a risk you are as a borrower. Hard inquiries happen when you are applying for a loan, mortgage, or credit card. Hard inquiries have to be authorized because they affect your credit score.
How much does a hard inquiry affect your credit score?
How much a hard inquiry affects your credit will depend on your credit history. Credit checks have a minuscule impact on your FICO score, less than five points. But the fewer accounts and shorter history you have can make these two to five points per inquiry hurt your credit. The more inquiries on your report, the riskier you look to lenders.
On top of that, every time you get your credit pulled it gets harder to get accepted for a loan or card. If the first company you apply to denies you the next company you apply to will see that inquiry. Companies can see that you recently got a hard credit pull and that other lenders deem you too risky. The more times you are denied, the harder it is to get a loan or card. Although too many inquiries on your report look risky to most lenders, some are more interested in more important things on your credit file, like on time payments and credit history.
How long do hard inquiries stay on your credit report?
Hard inquiries stay on your report for two years but, they can only affect your credit score for twelve months at most. If you have a good credit profile, hard inquiries shouldn’t make much of an impact. Usually, your report only drops two points for each hard pull. Unless you have horrible credit, or a company pulled your report multiple times, it isn’t something to worry about.