When Do Hard Credit Inquiries Fall Off?

Credit inquiries are records on your credit report, documenting when your credit information has been accessed. They show who requested to view your credit file and for what purpose. Understanding these inquiries is important for managing your financial profile, as they reflect your interactions with lenders.

What Are Hard Credit Inquiries?

A hard credit inquiry occurs when a lender checks your credit report in response to an application for new credit. This happens when you apply for a credit card, a mortgage, an auto loan, or a personal loan. Lenders use hard inquiries to assess your creditworthiness before extending credit.

In contrast, a soft credit inquiry occurs when a credit report is accessed for purposes other than a new credit application. These can include checking your own credit score or pre-approvals for credit offers. Soft inquiries do not impact your credit score. The distinction is that hard inquiries signal a consumer’s active pursuit of new credit.

How Long Hard Inquiries Remain

Hard credit inquiries remain visible on your credit report for up to two years. This timeframe applies across the major credit reporting agencies: Equifax, Experian, and TransUnion. These inquiries provide a historical record of your credit-seeking behavior for potential lenders.

When an inquiry “falls off” a credit report, it is no longer displayed and generally ceases to be considered by most credit scoring models. While inquiries are visible for two years, their influence on credit scores often diminishes sooner. The removal is an automatic process, requiring no action from the consumer.

Their Influence on Credit Scores

Hard credit inquiries can influence your credit score, though this impact is minor and temporary. A single hard inquiry might cause a small dip of a few points. This adjustment reflects the increased risk associated with seeking new credit.

The effect of a hard inquiry on a credit score usually diminishes within six to twelve months, even while the inquiry remains on the report for up to two years. Multiple inquiries in a short period can indicate a higher risk to lenders, potentially leading to a greater score impact. However, most credit scoring models account for “rate shopping,” where multiple inquiries for the same loan type, such as a mortgage or auto loan, within a concentrated period are treated as a single inquiry.

Actions Regarding Hard Inquiries

Consumers can manage hard inquiries and monitor their credit reports. To minimize legitimate hard inquiries, apply for new credit only when necessary and compare offers carefully before submitting multiple applications. When “rate shopping” for specific loans like mortgages or auto loans, grouping applications within a short timeframe, such as two to four weeks, can help ensure they are treated as a single inquiry by scoring models. This strategy can reduce the cumulative impact on your credit score.

Regularly review your credit reports from each of the three major credit bureaus through AnnualCreditReport.com. This allows you to identify any inquiries that appear unfamiliar or unauthorized. If you find an inaccurate or unauthorized hard inquiry, you have the right to dispute it directly with the credit bureau that reported it. The credit bureau will investigate the claim and remove the inquiry if it is found to be incorrect or not properly authorized.