Understand What a Hard Credit Inquiry Is – And How It Could Impact Your Credit Score

Credit inquiries are one of the most important factors in determining your credit score. A hard credit inquiry can have a lasting effect on your credit score and understanding what it is and how it affects your credit score is important. In this blog post, we'll discuss what a hard credit inquiry is, how long a hard inquiry stays on your credit report, the difference between soft and hard credit checks, how to remove a hard inquiry from your credit report, the impact of hard credit inquiries on your credit score, and tips for avoiding hard credit inquiries.

What is a Hard Credit Inquiry?
A hard credit inquiry is a type of check that is done when a financial institution or lender checks your credit report. This type of check can also be done when you apply for a loan, credit card, or other type of financing. A hard credit inquiry is also known as a “hard pull” because it can have a negative impact on your credit score.
When a lender or financial institution checks your credit report, they are looking for information such as your credit history, payment history, credit utilization, and other financial information. This information is used to determine your creditworthiness and whether or not you are a good candidate for a loan or other type of financing.
In order for a hard credit inquiry to take place, you must authorize the financial institution or lender to pull your credit report. This is usually done by signing a form or filling out an online application.

How Long Does a Hard Inquiry Stay on Your Credit Report?
The length of time a hard inquiry remains on your credit report depends on the type of inquiry that was done. Generally, a hard inquiry stays on your credit report for two years. However, some types of inquiries, such as those that are done in order to obtain a loan or credit card, may stay on your credit report for up to seven years.

Soft vs Hard Credit Check
The difference between a soft and hard credit check is that a soft check does not affect your credit score. Soft checks are typically done when you check your own credit report or when a financial institution or lender checks your credit report as part of a pre-approval process.
On the other hand, a hard credit check will affect your credit score. This type of check is done when you apply for a loan or credit card and the financial institution or lender is checking your credit report to determine if you are a good candidate for the loan or credit card.

What is a Soft Credit Pull?
A soft credit pull is a type of credit check that does not affect your credit score. This type of check is typically done when you check your own credit report or when a financial institution or lender checks your credit report as part of a pre-approval process.
Soft credit pulls are also sometimes referred to as “soft inquiries” or “soft pulls” because they do not have a negative impact on your credit score.

How Long Do Credit Checks Stay On Your Credit Report?
The length of time a credit check stays on your credit report depends on the type of inquiry that was done. Generally, a soft credit check stays on your credit report for two years. However, some types of inquiries, such as those that are done in order to obtain a loan or credit card, may stay on your credit report for up to seven years.

How to Remove a Hard Inquiry from Your Credit Report
If you want to remove a hard inquiry from your credit report, you will need to dispute the inquiry with the credit reporting agency. The credit reporting agency will then investigate the inquiry and determine if it is valid or not. If the inquiry is determined to be invalid, the credit reporting agency will remove it from your credit report.

The Impact of Hard Credit Inquiries on Your Credit Score
The impact of hard credit inquiries on your credit score can vary depending on the type of inquiry and how long the inquiry remains on your credit report. Generally, hard inquiries can have a negative impact on your credit score because they indicate that you are applying for credit.
However, the impact of a single hard inquiry can be minor and can be offset by other positive factors such as paying your bills on time and having a low credit utilization ratio. It is important to remember that the impact of a single hard inquiry is usually not enough to significantly lower your credit score.

Tips for Avoiding Hard Credit Inquiries
If you want to avoid having a hard inquiry on your credit report, there are a few steps you can take. First, you should always review the terms and conditions of any loan or credit card before you apply. Make sure you understand the terms and conditions and make sure you are comfortable with the terms.
Second, you should limit the number of hard inquiries on your credit report. If you are shopping for a loan or credit card, try to apply for all of them within a short period of time. This will minimize the number of hard inquiries on your credit report.
Finally, you should always check your credit report regularly. This will help you spot errors or inaccuracies that may be causing a hard inquiry to appear on your credit report. You can dispute any errors or inaccuracies with the credit reporting agency in order to have them removed.

Conclusion
Understanding what a hard credit inquiry is and how it affects your credit score is important. Hard inquiries can have a negative impact on your credit score, so it is important to limit the number of hard inquiries on your credit report.
If you want to avoid having a hard inquiry on your credit report, make sure to review the terms and conditions of any loan or credit card before you apply and limit the number of hard inquiries on your credit report. Additionally, make sure to check your credit report regularly for errors or inaccuracies that may be causing a hard inquiry to appear on your credit report. By following these tips, you can help ensure that your credit score remains in good standing.
November, 12 / 2022
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