How Long Do Hard Inquiries Stay on Your Credit Report?

Credit inquiries are records that appear on a consumer’s credit report whenever a lender or other authorized entity accesses their credit history. This article will specifically focus on hard inquiries, which are most relevant to how long they remain visible on a credit report and their potential effects.

Understanding Hard Inquiries

A hard inquiry occurs when a financial institution or lender reviews your credit report as part of an application for new credit. This happens when you apply for products such as a mortgage, an auto loan, a new credit card, a personal loan, or certain types of insurance. The institution performing the check requires your explicit permission to conduct this type of inquiry.

These inquiries are part of the lender’s process to assess your creditworthiness and evaluate your financial behavior, including payment history and existing balances.

Duration on Credit Reports

Hard inquiries generally remain visible on your credit report for up to two years from the date of the inquiry. This duration is consistent across the major credit bureaus, including Experian, Equifax, and TransUnion. While the inquiry stays on your report for two years, its impact on your credit score typically diminishes much sooner, often after 12 months.

The presence of hard inquiries serves as a record of your credit-seeking behavior to potential lenders. Even after their direct influence on your score lessens, the inquiries provide a historical timeline of your credit applications.

Impact on Credit Scores

Hard inquiries can cause a slight, temporary dip in your credit score. A single hard inquiry usually results in a decrease of fewer than five points for most individuals. The impact of this score reduction generally lasts for about 12 months, even though the inquiry remains on your report for two years.

Multiple hard inquiries in a short period, especially for different types of credit, can be viewed less favorably by lenders, potentially signaling higher risk. However, credit scoring models typically account for “rate shopping” for the same type of loan, such as a mortgage, auto loan, or student loan. If multiple applications for the same loan type occur within a specific timeframe, usually 14 to 45 days, they are often treated as a single inquiry to mitigate the score impact. This exception generally does not apply to credit card applications.

Distinguishing Soft Inquiries

Soft inquiries are distinct from hard inquiries and do not affect your credit score. These occur when your credit report is accessed for purposes other than a new credit application. Examples include checking your own credit report, pre-approved credit card offers, background checks for employment, or certain insurance quotes.

Unlike hard inquiries, soft inquiries are only visible to you if you access your own credit report, and they are not seen by lenders when they review your file. They serve as informational checks and do not indicate new credit-seeking behavior. Therefore, they carry no risk to your credit standing.