What Is a Hard Inquiry?

Anytime you apply for a mortgage, you trigger a hard inquiry on your credit report. Hard inquiries, also known as hard credit checks or hard pulls, occur when a financial institution reviews your credit profile to make a lending decision. Lenders and other interested parties request a hard inquiry when a borrower applies for a mortgage, other loan, or line of credit. Making multiple hard inquiries in a short period of time often implies you rely too much on new credit, indicating to lenders that you may be a risky borrower. This is why hard inquiries can negatively impact your credit score.

In this article, we’ll discuss how hard inquiries work, how they differ from soft inquiries, and how they impact your credit score. We’ll also cover how many inquiries you can have and how long they stay on your credit report. 

Hard inquiries vs. soft inquiries

Lenders and other businesses will make hard and soft inquiries. Hard inquiries negatively affect your credit score, while soft inquiries do not. A soft inquiry, also known as a soft pull, occurs when someone wants to check your credit for reasons other than making a definitive lending decision. You might experience a soft inquiry when:

• You check your credit report
• You open a new bank account
• You get an insurance quote
• An employer runs a credit or a background check on you
• A current creditor requests to see your credit profile
• A lender pre-qualifies or pre-approves you for a credit card or auto loan

Borrowers don’t usually need to authorize soft inquiries and may not even know that they’re happening. Lenders are not notified of a soft inquiry on your report, only you can see it. Hard inquiries, on the other hand, are visible and signal to lenders you’re actively seeking new credit. A hard inquiry occurs when:

• You apply for a credit card
• You apply for an auto loan
• You apply for a personal loan
• You apply for a mortgage or an apartment
• You open a new account for a phone, cable or internet service
• You request a credit limit increase 

How does a hard inquiry work?

When you apply for new lines of credit or credit increases, a hard inquiry is noted on your credit report. The lender will usually request a copy of your credit report from at least one of the three major credit bureaus: Equifax, Experian, or TransUnion. If you’re pursuing a large loan, such as a mortgage, the lender may request a credit report from all three credit bureaus to get a more accurate picture of your credit profile.

Credit bureaus obtain your credit history from current and previous creditors, however, not all credit bureaus have access to the same information. Creditors can report to any of the three credit bureaus, but they don’t always report to all three. This may cause your credit report to vary from one credit bureau to another. 

How does a hard inquiry impact your credit score?

A hard inquiry will be reflected on your credit report and cause your credit score to drop slightly. According to FICO, a single hard inquiry can knock up to 5 points off your FICO score. A single inquiry on a VantageScore can knock up to 10 points off your credit score. Be sure to check with the lenders you intend to make a mortgage inquiry with to learn which credit scoring models they use for different loan programs.

Credit companies understand that borrowers who apply for more than one mortgage loan at a time are most likely shopping around for the most competitive rates — not seeking multiple loans at the same time. A 2024 Zillow survey confirmed that the most common reason buyers got multiple pre-approvals was to find different lenders that offered a better rate (36%). As a result, most FICO scores aren’t impacted by multiple hard inquiries within a 45-day period. Instead, they’re considered one inquiry, which will have a smaller impact on your credit score. Older FICO models and VantageScore also group hard inquiries to reflect rate shopping for a 14-day period.

While there are exceptions made for borrowers shopping around for the best rate, borrowers who are not rate shopping don’t enjoy the same benefits. Multiple loan applications that are not related to rate shopping (such as applying for a home loan and a car loan or credit card simultaneously) could signal to lenders that you’re a risky borrower and cause a significant drop in your credit score. It’s best to avoid seeking diversified lines of credit within a short timeframe.

When does a hard inquiry fall off a credit report?

Hard inquiries are usually visible on your credit report for up to two years. However, they should have no impact on your credit score after one year. FICO scores only consider hard inquiries from the last 12 months, while VantageScores may consider hard inquiries from the last 24 months. 

How many hard inquiries can I have on my report?

The amount of hard inquiries you can have on your credit report at any given time will depend on your credit score and credit history. If you have great or excellent credit, the negative effects of a hard inquiry could be minimal. This is especially true if you’ve been able to keep your credit balance low. 

However, if you have poor or fair credit, the negative impact of a hard pull could push you over the edge and lead to rejected applications and an even lower credit score. This is especially true if you have a high amount of unpaid balances on your report.

How to dispute hard credit inquiries

You might find hard inquiries on your credit report that you don’t recognize. If you see a hard pull that you didn’t approve, dispute it with the credit bureau. You could also contact the Consumer Financial Protection Bureau for help. Unknown hard credit inquiries shouldn’t be taken lightly as they could be signs of identity theft. Keep in mind, you can only dispute hard inquiries you didn’t authorize. 

Final thoughts on hard inquiries

Hard inquiries have a temporary effect on your credit, but they’re a necessary part of applying for a mortgage. Fortunately, most credit bureaus only factor in hard pulls for 12 months and the damage is minimal, dropping your credit score by only 5-10 points for each hard pull. Soft pulls don’t have any impact on your credit and are only visible to you. It’s best to avoid multiple hard inquiries in a short period of time, unless these inquiries are related to comparing rates. 

You can get pre-qualified for a mortgage with us at Zillow Home Loans*, with no impact on your credit score.

*An equal housing lender. NMLS #10287