The Timing of Hard Credit Inquiries: When and Why They Matter

Hard credit inquiries, those checks that lenders make on your credit history when you apply for credit, might only have a small impact on your credit score overall. However, timing matters and a hard inquiry could impact your credit application processes at an inopportune time. By learning the right way to approach your "rate shopping window," those hard inquiries don’t have to have such a negative impact on your credit score.

What is a hard credit inquiry?

Credit inquiries are checks made on your credit history. They fall into two main categories: hard inquiries and soft inquiries.

Hard inquiries are credit checks done by a lender when you apply for credit such as a credit card, credit card line increase, auto loan, or mortgage. Hard inquiries may lower your credit score.

How hard inquiries differ from soft inquiries

Soft inquiries are credit checks that do not impact your credit score. This includes checking your credit report through annualcreditreport.com (or with a tool like MyFICO), getting a pre-approved credit card offer, or employment background checks.

When hard inquiries happen

Hard inquiries happen when you actively apply for credit or services that require a credit check to assess your risk of paying back loans or other debts. These inquiries signal to lenders that you’re seeking additional credit, which can slightly increase your perceived risk.

How long do hard inquiries stay on your credit report?

Hard inquiries typically remain on your credit report for up to two years. However, FICO® Scores only consider inquiries from the last 12 months.

Tips for managing hard inquiries effectively

When shopping for a mortgage, auto loan, or student loan, try to complete your rate comparisons quickly to keep hard inquiries from impacting your credit score. This is called a “rate shopping window,” and it lasts 45 days for the newer versions of the FICO ® Scores. For FICO Scores calculated from older versions of the scoring formula, this shopping period is any 14-day span. FICO Scores treat multiple inquiries within these timeframes as a single inquiry because you’re looking for one new form of credit – an auto loan, a mortgage, or a student loan.

In the same vein, avoid applying for multiple types of credit, such as a credit card and a personal loan, simultaneously. If you space out your applications to different things, you’ll avoid a cluster of hard inquiries on your credit report, arousing suspicion from creditors. You can also use pre-qualification tools offered by lenders, most commonly credit card lenders. These tools often provide an initial estimate of your eligibility without impacting your credit score.