The Impact of Hard Inquiries on Your Credit

Every time you apply for a credit card, a loan, or even a mobile phone contract, your credit file may take a small hit. That’s due to something called a hard inquiry — and it’s one of the lesser-known factors that influence your credit score.

Many people worry about how credit applications affect their score, and rightly so. But not all inquiries are equal, and not all of them cause lasting damage.

In this guide, you’ll learn what hard inquiries are, how they affect your credit, and how to manage them smartly for long-term credit score impact control.

What Is a Hard Inquiry?

A hard inquiry (also known as a “hard credit check” or “hard pull”) happens when a lender checks your credit report as part of a credit application. This check is used to assess your creditworthiness — in other words, how likely you are to repay what you borrow.

Hard inquiries are commonly triggered when you:

• Apply for a credit card
• Take out a personal loan
• Apply for a mortgage or car finance
• Sign up for a new mobile phone contract
• Request an increase to your credit limit

Soft vs Hard Inquiries: What’s the Difference?

Not all credit checks are hard inquiries. Some are “soft” — and don’t affect your score.

Soft Inquiry:

• Doesn’t affect your credit score
• Not visible to lenders
• Examples: pre-approval checks, background checks, checking your own score

Hard Inquiry:

• Can lower your score temporarily
• Visible to other lenders
• Linked to a specific credit application

How Much Do Hard Inquiries Affect Your Score?

A single hard inquiry usually drops your score by just a few points — typically 5 points or less. But the exact credit score impact depends on your overall credit profile.

Here’s what influences the effect:

• Your current score (lower scores are more affected)
• Your credit history length
• Number of recent inquiries
• Type of credit applied for

If you have strong credit and only apply occasionally, a hard inquiry is barely noticeable. But several inquiries in a short time can raise red flags.

How Long Do Hard Inquiries Stay on Your Report?

Hard inquiries stay on your credit report for two years. But their impact fades sooner.

Here’s the breakdown:

• Immediate impact: Score may drop slightly after a new inquiry
• 6–12 months: Most scoring models stop factoring them in
• 24 months: Inquiries disappear completely from your report

So while they’re visible for a while, they don’t hurt your score forever.

Want more tips to stay credit-savvy? Read our guide on Timely Bill Payments and Credit Health for further reading.

When Are Multiple Inquiries Treated as One?

Good news: if you’re shopping for the best deal on a loan, credit scoring models often count multiple inquiries as a single event — as long as they occur within a certain timeframe.

For example:

• Mortgage or auto loan inquiries within a 14–45 day window (depending on the model) are grouped together
• This allows you to compare rates without multiple score penalties

How to Minimise the Impact of Hard Inquiries

If you’re planning multiple credit applications, use these strategies to protect your score:

1. Know Your Score First

Use a soft-check tool to see your score before applying. This helps you apply only for products you’re likely to qualify for.

2. Space Out Applications

Avoid applying for several credit cards or loans in quick succession. Give your score time to recover between applications.

3. Use Pre-Approval Tools

Many lenders let you check eligibility without a hard pull. Use this to narrow down your choices.

4. Don’t Apply Without Purpose

Only apply when you truly need credit — not just for a free gift or welcome offer.

5. Consolidate Credit Applications

If you’re shopping for a car or mortgage, do all your rate comparisons within a short period. That way, the inquiries are grouped together.

When Are Hard Inquiries Worth It?

Sometimes a temporary dip in your score is a fair trade-off for a bigger goal.

For example:

• Getting a mortgage can build long-term wealth
• Financing a car may be necessary for work
• Opening a credit card can help you build credit or earn rewards

Just be sure the benefit outweighs the short-term score impact — and that you can manage the new credit responsibly.

Common Misconceptions About Hard Inquiries

Let’s clear up a few myths:

“Checking my own credit lowers my score.”

Not true. This is a soft inquiry and has no impact on your score.

“Hard inquiries are a major factor in credit scoring.”

Wrong again. They account for only 10% or less of your score. Payment history and credit utilisation are far more important.

“One inquiry will ruin my credit.”

Nope. One or two inquiries won’t hurt much — especially if you manage your credit well overall.

What Lenders Think When They See Inquiries

Lenders look at hard inquiries as signs of risk — especially if there are lots of them in a short time.

They might ask:

• Why are they applying for so much credit?
• Are they in financial trouble?
• Will they be able to manage more debt?

That’s why a clean, limited inquiry history helps you appear stable and low-risk.

Should You Worry About Hard Inquiries?

In most cases — no. A hard inquiry is a normal part of applying for credit.

But you should:

• Be selective about when you apply
• Understand the impact on your score
• Plan your credit activity around big life events (like buying a house)

Apply Smart, Stay in Control

Hard inquiries are part of the credit process — but they don’t have to derail your financial plans. By understanding how they work and using strategic timing for your credit applications, you can limit the credit score impact and keep your credit profile strong.

Use pre-approvals, plan ahead, and focus on what matters most — making on-time payments and keeping your balances low. That’s how real credit strength is built.

Want more tips to stay credit-savvy? Read our guide on Managing Debt Responsibly for further reading.