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Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. SHARE: noSystem images/Getty Images March 10, 2022 Checkmark Bankrate logo How is this page expert verified? At Bankrate, we take the accuracy of our content seriously. "Expert verified" means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. Nicole Dieker has been a full-time freelance writer since 2012—and a personal finance enthusiast since 2004, when she graduated from college and, looking for financial guidance, found a battered copy of Your Money or Your Life at the public library. In addition to writing for Bankrate, her work has appeared on CreditCards.com, Vox, Lifehacker, Popular Science, The Penny Hoarder, The Simple Dollar and NBC News. Dieker spent five years as writer and editor for The Billfold, a personal finance blog where people had honest conversations about money. Dieker also teaches writing, freelancing and publishing classes and works one-on-one with authors as a developmental editor and copyeditor. Cathleen's stories on design, travel and business have appeared in dozens of publications including the Washington Post, Town & Country, Wall Street Journal, Marie Claire, Fodor’s Travel, Departures and The Writer. Bankrate logo The Bankrate promise
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. If you’re trying to increase your credit score, chances are you’re watching many factors. You’re making sure you pay your bills on time—because your payment history counts for 35 percent of your credit score. You’re also watching your , which counts for 30 percent of your FICO score. But did you know that credit inquiries make up 10 percent of your FICO score and some types of credit inquiries can lower your credit score? There are a lot of reasons why someone might inquire into your credit history. When you apply for a new credit card, take out a mortgage or rent an apartment, lenders and landlords conduct credit inquiries to determine whether you are likely to be a financial risk. These inquiries are called “hard credit inquiries” and have the potential to drop your credit score by a few points. Other types of credit inquiries are called “soft credit inquiries.” These inquiries are more like background checks and don’t affect your credit score in any way. A lot of people wonder how much credit inquiries affect their credit score. Since the are generally reserved for people with good or excellent credit, every credit score point counts. Does that mean you need to worry about credit inquiries lowering your score? How many points does a hard inquiry—and other types of credit management activities—take off your credit score? In most cases, you don’t have to worry about credit inquiries doing significant damage to your credit. Let’s take a close look at how different types of credit inquiries affect your credit score. What is a credit inquiry
A credit inquiry is exactly what it sounds like—an inquiry into your credit. Lenders, landlords and potential employers have the ability to request access to your credit file, and these credit inquiries help them get a quick overview of whether you’ve been using your credit responsibly. Why do credit inquiries matter
When you apply for a credit card, begin shopping for a loan or prepare to take on a new financial responsibility, like renting an apartment, the lenders and companies involved want to know whether you’re likely to be a financial risk. By conducting an inquiry into your credit history, these companies are able to assess your level of financial responsibility and the likelihood that you might default on your loan, miss credit card payments or skip out on the rent. There are : hard inquiries, which can have a negative effect on your credit score, and soft inquiries, which don’t affect your score at all. Hard credit inquiries
, sometimes called “hard pulls,” take place when you request a new line of credit or begin the process of taking on a major financial commitment. If you apply for a credit card, for example, the card issuer will pull your credit file and you’ll see a hard inquiry on your credit reports. You must give permission for a company to perform a hard pull on your credit, so these inquiries shouldn’t take you by surprise. Common hard credit inquiries include: (including mortgages, car loans, and personal loans) Phone or utility applications (such as turning on electric in a house or signing up for a new cellphone contract) Soft credit inquiries
, or “soft pulls,” occur when companies pull your credit file for a reason unrelated to a new financial obligation. Soft credit inquiries are often performed as background checks and are sometimes used to determine whether you can be pre-approved for a credit offer. Although some soft credit inquiries (such as employer credit checks) only take place with your permission, other soft inquiries don’t require permission and may even occur without your knowledge. Common soft credit inquiries include: Employer credit checks Insurance quotes for loans, credit cards or insurance Credit monitoring services (or decreases) on your credit cards that you did not request Soft inquiries are usually not indicative of a firm financial commitment, so they don’t affect your credit score. Does checking your credit score lower it
is considered a soft inquiry and does not lower your credit. There are many and out there, and these services do not generally perform hard inquiries on your credit file. If a credit-tracking app or website does make an inquiry into your file as part of its credit monitoring process, it will be a soft inquiry that will have no effect on your credit score. You also don’t need to worry about lowering your credit by checking your credit report. Any time you pull your credit file from Experian, TransUnion or Equifax to assess your credit history and/or , it counts as a soft inquiry and won’t affect your credit score. How do multiple credit inquiries affect your score
Can multiple credit inquiries have a negative effect on your credit score? It depends on what kind of credit you’re shopping for. If you’re to find the best interest rate on something like a or an , the major credit bureaus and FICO understand you’re likely to have multiple credit inquiries on your account. That’s why multiple inquiries for the same type of credit are considered as a single inquiry if they occur within a specific time span. Older FICO scoring models consolidate inquiries made within two weeks, while the gives consumers 45 days to shop around for the best rates and terms. If you apply for in a short time period, each application will add a new hard credit inquiry to your credit report. This could make a big difference in your interest rates if you are on the border between and —and it’s one of the reasons why it’s a good idea to . How many points will a hard inquiry impact your credit score
A hard credit inquiry could lower your credit score by as much as 10 points, though in many cases the damage probably won’t be that significant. As explains: “For most people, one additional credit inquiry will take less than five points off their FICO Scores.” FICO also reports that hard credit inquiries can remain on your credit report for up to two years—but when FICO calculates your credit score, it only considers credit inquiries made in the past 12 months. This means that if your credit inquiry is over a year old, it will no longer affect your FICO credit score. How many points will a soft inquiry impact your credit score
A soft inquiry does not affect your credit score in any way. When a lender performs a soft inquiry on your credit file, the inquiry might appear on your credit report but it won’t impact your credit score. How to minimize the impact of hard credit inquiries
As we mentioned above, if you want to minimize the impact of hard credit inquiries, try to avoid applying for a lot of new credit all at once. You can also aim to condense your credit shopping into a short period of time when you’re getting ready to take out a car loan or a mortgage. The credit bureaus often track this type of rate shopping as a single credit inquiry, which will have less of an impact on your credit score. How to dispute or remove credit inquiries
It’s possible to dispute or remove some credit inquiries from your credit report. If you initiated the hard credit pull by applying for new credit, you cannot remove the inquiry from your report. However, if the credit inquiry is the result of fraud (identity theft or some other error), you can with the credit bureaus—Equifax, Experian and TransUnion—in order to request a hard inquiry removal. The bottom line
Once you understand how credit inquiries affect your credit score, you can make smart decisions about when to apply for new credit. Checking your credit score does not lower it, so feel free to review your credit score as often as you like. If you decide to take on a major financial obligation like a new credit card, mortgage or apartment rental, expect a hard inquiry into your credit. How many points does a hard inquiry affect your credit score? In many cases, a hard credit inquiry will only drop your score by a few points—and soft credit inquiries won’t affect your score at all. SHARE: Nicole Dieker has been a full-time freelance writer since 2012—and a personal finance enthusiast since 2004, when she graduated from college and, looking for financial guidance, found a battered copy of Your Money or Your Life at the public library. In addition to writing for Bankrate, her work has appeared on CreditCards.com, Vox, Lifehacker, Popular Science, The Penny Hoarder, The Simple Dollar and NBC News. Dieker spent five years as writer and editor for The Billfold, a personal finance blog where people had honest conversations about money. Dieker also teaches writing, freelancing and publishing classes and works one-on-one with authors as a developmental editor and copyeditor. Cathleen's stories on design, travel and business have appeared in dozens of publications including the Washington Post, Town & Country, Wall Street Journal, Marie Claire, Fodor’s Travel, Departures and The Writer. Related Articles