How much does credit inquiry affect score

Reading time: 2 minutes

Highlights:

• Checking your credit reports or credit scores will not impact credit scores

• Regularly checking your credit reports and credit scores is a good way to ensure information is accurate

• Hard inquiries in response to a credit application do impact credit scores

Many people are afraid to request a copy of their credit reports – or check their credit scores – out of concern it may negatively impact their credit scores.

Good news: Credit scores aren't impacted by checking your own credit reports or credit scores. In fact, regularly checking your credit reports and credit scores is an important way to ensure your personal and account information is correct, and may help detect signs of potential identity theft.

Impact of soft and hard inquiries on credit scores

When you request a copy of your credit report or check credit scores, that’s known as a “soft” inquiry. Other types of soft inquiries result from companies that send you promotional credit card offers and existing lending account reviews by companies with whom you have an account. Soft inquiries do not affect credit scores and are not visible to potential lenders that may review your credit reports. They are visible to you and will stay on your credit reports for 12 to 24 months, depending on the type.

The other type of inquiry is a “hard” inquiry. Those occur after you have applied for a loan or a credit card and the potential lender reviews your credit history.

Hard inquiries do affect credit scores, but if you’re making a large purchase  - such as buying a house or securing a mortgage - and shopping around for the most competitive rates, multiple hard inquiries are generally treated as one hard inquiry for a given period of time, typically 14 to 45 days. That allows you ample time to check different lenders and find the best loan terms for you. This multiple-hard inquiry exception generally does not apply to credit cards. Find out more information on hard inquiries and your credit.

Getting your credit reports

You’re entitled to a free copy of your credit reports every 12 months from each of the three nationwide credit bureaus by visiting www.annualcreditreport.com. You can also create a myEquifax account to get six free Equifax credit reports each year. In addition, you can click "Get my free credit score" on your myEquifax dashboard to enroll in Equifax Core Credit™ for a free monthly Equifax credit report and a free monthly VantageScore® 3.0 credit score, based on Equifax data. A VantageScore is one of many types of credit scores.

When checking your credit report, it’s important to make sure all your personal information, such as your name and addresses, is accurate and there isn’t information you don’t recognize. In addition, make sure your account information is accurate and complete. Do the account balances, credit limits, and payment history look accurate? Is there account information listed that you don’t believe is yours?

If you see account information that you believe is inaccurate or incomplete on your credit reports, contact the lending company directly. You can also file a dispute with the credit bureau providing the credit report. At Equifax, you can create a myEquifax account to file a dispute. Visit our dispute page to learn other ways you can submit a dispute.

Reading time: 3 minutes

Highlights:

• When a lender or company requests to review your credit reports after you've applied for credit, it results in a hard inquiry
• Hard inquiries usually impact credit scores
• Multiple hard inquiries within a certain time period for a home or auto loan are generally counted as one inquiry

Some consumers are reluctant to check their credit reports because they are concerned that doing so may impact their credit scores. While pulling your own credit report does result in an inquiry on your credit report, it will not affect your credit score. In fact, knowing what information is in your credit report and checking your credit may help you get in the habit of monitoring your financial accounts.

One of the ways to establish smart credit behavior is to understand how inquiries work and what counts as a “hard” inquiry on your credit report.

What is a hard inquiry?

When a lender or company requests to review your credit report as part of the loan application process, that request is recorded on your credit report as a hard inquiry, and it usually will impact your credit score. This is different from a “soft” inquiry, which can result when you check your own credit or when a promotional credit card offer is generated. Soft inquiries do not impact your credit score.

Hard inquiries serve as a timeline of when you have applied for new credit and may stay on your credit report for two years, although they typically only affect your credit scores for one year. Depending on your unique credit history, hard inquiries could indicate different things to different lenders.

Recent hard inquiries on your credit report tell a lender that you are currently shopping for new credit. This may be meaningful to a potential lender when assessing your creditworthiness.

Exceptions to the impact on your credit score

If you’re shopping for a new auto or mortgage loan or a new utility provider, the multiple inquiries are generally counted as one inquiry for a given period of time. The period of time may vary depending on the credit scoring model used, but it's typically from 14 to 45 days. This allows you to check different lenders and find out the best loan terms for you.

All new auto or mortgage loan or utility inquiries will show on your credit report; however, only one of the inquiries within a specified window of time will impact your credit score. 

This exception generally does not apply to other types of loans, such as credit cards. All inquiries will likely affect  your credit score for those types of loans.

Plan before shopping for a loan

Before shopping for a loan, it’s always smart to proactively plan your finances.

First, learn whether the type of credit you’re applying for can have its hard inquiries treated as a single inquiry. Multiple inquiries from auto loan, mortgage or student loan lenders typically don’t affect most credit scores.

Second, you may also want to check your credit before getting quotes to understand what information is reported in your credit report. You’re entitled to a free copy of your credit reports every 12 months from each of the three nationwide credit bureaus by visiting www.annualcreditreport.com. You can also create a myEquifax account to get six free Equifax credit reports each year. In addition, you can click“Get my free credit score” on your myEquifax dashboard to enroll in Equifax Core Credit™ for a free monthly Equifax credit report and a free monthly VantageScore® 3.0 credit score, based on Equifax data. A VantageScore is one of many types of credit scores.

If you’re worried about the effect that multiple hard inquiries may have on your credit report, it may be tempting to accept an offer early rather than allow multiple hard inquiries on your credit. However, consider your individual situation carefully before cutting your shopping period short. In many cases, the impact hard inquiries have on your credit score from shopping around may be less impactful than the long-term benefits of finding a loan with more favorable terms.

The more informed you are about what happens when you apply for a loan, the better you can prepare for the process. Learning more about credit inquiries before you go loan shopping may help you prepare for any impact they might have on your credit score.

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