What an inquiry is
Every time a company looks at your credit report, the bureau keeps a record of it. That record is an inquiry. Inquiries come in two kinds, and the difference is whether you applied for credit.
| Hard inquiry | Soft inquiry | |
|---|---|---|
| What causes it | You apply for a card or loan and the lender checks your report | A check that is not tied to a credit application |
| Affects your score? | Can, usually by a small amount | No |
| Who can see it | Lenders who pull your report | Generally only you, on your own copy |
| How long it shows | Up to two years | Varies by bureau |
What triggers a hard inquiry
- Applying for a credit card, including a secured card at most issuers.
- Applying for a car loan, personal loan, private student loan or mortgage.
- Asking some card issuers for a higher credit limit. Ask first whether they do a hard or soft check.
- Some apartment rentals, phone plans and utility accounts. Some use a hard check and some a soft one, so ask.
A hard inquiry should only happen when you have applied. If you see one you do not recognize, read the section on unfamiliar inquiries below.
What triggers a soft inquiry
- Checking your own credit report or score, through any app, bank or AnnualCreditReport.com.
- Prequalification checks, where a lender estimates whether you are likely to be approved.
- Prescreened "you're preapproved" offers that arrive in the mail.
- Your existing card issuers or lenders reviewing your account.
- Some background checks, such as an employer screening, done with your permission.
Checking your own credit never hurts it. Check as often as you like.
How much a hard inquiry matters
Less than most people fear. FICO says that for most people, one additional inquiry takes less than five points off their FICO scores. The whole "new credit" category, which includes inquiries, is only about 10% of a FICO score.
Inquiries can matter more if your file is thin or new, because there is less other information to balance them out. Several applications in a short time can also look like a sign of money trouble to a lender reading your report by hand, even when the score drop is small.
The bigger cost of applying for lots of credit is usually not the inquiry. It is the new accounts, which lower the average age of your history. For someone building credit from scratch, one new account at a time is plenty.
How long hard inquiries last
Hard inquiries can stay on your credit report for up to 24 months. FICO scores only count them for the first 12 months. After a year, an inquiry is still visible to a lender reading your report, but it no longer affects your FICO score.
You cannot have an accurate hard inquiry removed just because you would rather it was not there. Inquiries you did authorize stay until they age off.
Rate shopping: when many inquiries count as one
Scoring models know that people compare offers before taking out a big loan. So for certain loans, several hard inquiries in a short window are treated as a single inquiry. The window depends on the model:
| Score | Loans covered | Shopping window |
|---|---|---|
| Older FICO versions | Mortgage, auto, student loans | 14 days |
| Newer FICO versions | Mortgage, auto, student loans | 45 days |
| VantageScore 4.0 | Inquiries within the window | 14 days |
FICO also ignores mortgage, auto and student loan inquiries made in the 30 days before the score is calculated, so a lender pulling your score in the middle of your shopping does not see them counted against you.
Two things to know:
- Credit cards are not covered by FICO's rule. Each card application counts as its own inquiry, even on the same day.
- You usually do not know which version a lender uses. Some lenders still use older versions. To be safe, do all your loan shopping within 14 days.
Prequalification: shopping without a hard inquiry
Many card issuers and lenders let you check whether you are likely to be approved before you apply. These checks use a soft inquiry, so they do not affect your score.
- Use prequalification tools first. Look for a "see if you prequalify" or "check your offers" link on the issuer's own site.
- Read the result carefully. Prequalified means likely, not guaranteed. The final decision comes after you apply.
- Apply only where you are likely to be approved. The real application usually brings a hard inquiry.
- Space out applications. For a new credit file, giving each new account several months before the next one keeps both inquiries and new accounts to a minimum.
For mortgages, the words are used loosely. Some lenders call a soft check "prequalification" and a full review with a hard inquiry "preapproval." Ask the lender which kind of check it will run.
Stopping prescreened offers
Prescreened offers in the mail come from soft inquiries and do not hurt your score. If you would rather not get them, the FTC points to the official opt-out site, OptOutPrescreen.com, or 1-888-5-OPT-OUT (1-888-567-8688). You can opt out for five years online or by phone, or permanently by also mailing a signed form.
If you see an inquiry you do not recognize
An unfamiliar hard inquiry can be an honest mix-up, such as a store card opened under a bank's name you do not recognize. It can also be a sign that someone applied for credit using your information.
- Check whether the name matches a lender you applied with. Store and car-dealer financing often appears under the bank's name.
- If it is not yours, dispute it with the bureau that shows it. Our guide to disputing a credit report error walks through the steps.
- If you think it is fraud, consider a credit freeze. Our guide to reading your credit report explains freezes and fraud alerts.
General information only, not financial or legal advice. Terms change often; confirm the current terms on the provider's own site before you apply. Some links may pay us a commission. Disclosure.