Hard inquiries, which occur when a lender or creditor pulls your credit report as part of a loan or credit application, typically stay on your credit report for up to two years. However, their impact on your credit score usually lasts for only about one year. After that, while the inquiry remains visible to lenders for the full two years, it no longer affects your credit score
. The effect of a single hard inquiry on your credit score is generally minor, often reducing it by fewer than five points, and the impact diminishes over time. Multiple hard inquiries within a short period can have a greater negative effect, as they may signal financial distress to lenders. Additionally, credit scoring models like FICO treat multiple inquiries for the same type of loan (e.g., mortgage, auto, student loan) made within a short window (typically 14 to 45 days) as a single inquiry, minimizing the impact on your score
. In summary:
- Hard inquiries remain on your credit report for 2 years.
- They affect your credit score for about 1 year.
- Each inquiry typically lowers your score by a few points.
- Multiple inquiries in a short time can have a larger impact but are often grouped for scoring purposes.
Maintaining good credit habits, such as timely payments and low credit utilization, can help mitigate the impact of hard inquiries on your credit score
