Find out how long hard inquiries stay on your credit report and how they affect your credit score.
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What is a hard inquiry?
A hard inquiry is a type of credit check that occurs when you apply for a loan or a credit card. Hard inquiries can stay on your credit report for up to two years, but they only impact your score for the first year.
What is a soft inquiry?
ASoft inquiries, also called soft pulls, do not have an adverse effect on your credit score. These are inquiries made by companies for non-lending purposes, such as when you check your own credit score or when a company checks your credit for pre-screening purposes. Soft inquiries are not visible to creditors and do not affect your credit score.
A hard inquiry is an inquiry made by a creditor when you apply for a loan or credit card. Hard inquiries can stay on your credit report for up to two years and can have a negative impact on your credit score.
How long do hard inquiries stay on your credit report?
Hard inquiries remain on your credit report for up to two years, but they only impact your credit scores for the first year. After that, they’ll fall off your report and stop impacting your scores. So, if you’re worried about a hard inquiry hurting your credit score, you don’t need to be.
How do hard inquiries affect your credit score?
In short, hard inquiries could potentially negative affect your credit score.
The impact of hard inquiries on your credit score really depends on how many you have. In general, having more than six in a 12-month period can start to look bad to potential creditors. And if you have a lot of other negative items on your report, it can further damage your chances of getting approved for new credit.
Hard inquiries stay on your report for two years, but only impact your score for the first year. So if you have a few hard inquiries in one year and then manage to get your score up over the next 12 months, you’ll be in good shape when it comes time to apply for new credit.
How to remove hard inquiries from your credit report
Hard inquiries can stay on your credit report for up to two years. If you want to remove hard inquiries from your credit report, you can do so by dispute the inquiry with the credit bureau.
How to avoid hard inquiries in the future
The best way to avoid hard inquiries is to only apply for credit when you really need it. If you’re not sure whether you need a new credit card or loan, ask yourself whether you can comfortably make the payments without borrowing more money than you already have. If the answer is no, it’s probably best to wait.
If you do need to apply for credit, there are a few things you can do to minimize the number of hard inquiries on your report:
-Shop around for rates before applying. Getting multiple quotes from different lenders will help you get the best interest rate without triggering too many hard inquiries.
-Ask for a rate match. If you find a better interest rate after applying for a loan or credit card, call your lender and ask if they’ll match it. This can help you get a lower rate without incurring another hard inquiry.
-Avoid opening too many accounts at once. Applying for multiple credit cards or loans in a short period of time can cause lenders to view you as a higher risk borrower. If possible, space out your applications so thathard inquiries don’t pile up on your report all at once.