Hard Inquiry

Hard inquiry summary:

• A hard inquiry is when someone you authorize checks your credit because you've applied for credit. 

• Hard credit inquiries show up on your credit reports.

• Hard inquiries factor into your credit score. Each one can trim a few points off your score.

Hard inquiry definition and meaning

A hard inquiry means that someone has checked your credit reports because you applied for new credit. That could be a loan, a credit card, or even a credit limit increase on a credit card that you already have.

Hard inquiries usually require your permission, with some exceptions. If the person who wants to check your credit has a court order, for example, they don't need your permission. 

Hard inquiries show up on your credit report and stay there for two years. They affect your credit scores for one year.

Achieve isn't a credit repair organization and doesn't provide or offer services or advice to repair, modify, or improve your credit.

Key concept: A hard inquiry is a credit history check by someone you authorize.

More on hard inquiries

When you apply for a loan or credit card, a credit check usually follows. Credit checks help lenders measure your creditworthiness, or how likely you are to repay what you borrow. 

Lenders do what's called a hard inquiry or hard pull of your credit reports and scores. A hard inquiry lets a lender view your credit history, including who you owe and how much. Lenders use what they learn from a hard inquiry to decide whether to lend you money.

Hard inquiry: a comprehensive breakdown

To understand hard inquiries, it helps to understand a little about how credit scores and reports work. A credit score is a three-digit number that represents how well you have managed credit accounts in the past. Credit scores are calculated from the information in your credit reports. 

A credit report is a collection of details about your credit accounts. You’re likely to find these details on your credit reports:

• Names of your creditors

• Account numbers

• Account balances

• Credit limits

• Minimum payment amount

• Payment history

• Types of credit you’ve used

• Age of your credit accounts

• Recent hard inquiries

Creditors share these details with the credit bureaus. Equifax, Experian, and TransUnion are the three major credit bureaus in the U.S. 

When a creditor performs a hard inquiry, they get to take a look at your credit reports. Some lenders pull credit reports from all three credit bureaus, while others pull just one. 

With some limited exceptions, no one can do a hard inquiry of your credit without your permission. Typically when you apply for credit, you have to check a box somewhere on the application to authorize a hard inquiry. 

Hard inquiries show up on your credit reports. Each inquiry can take a few points away from your credit scores. A hard inquiry can stay on your credit reports for two years. Only inquiries from the last 12 months are used to make FICO score calculations. 

Real-life examples of hard inquiries on a credit report

A hard inquiry can land on your credit report for different reasons. Here are some scenarios that could lead to a hard credit pull. 

• You need to finance a car, so you apply for a car loan at your bank. The bank requires a hard credit pull to process your application. 

• You want to get a home equity loan to pay for some repairs and upgrades you've put off. The lender asks for permission to check your credit reports and scores. 

• You're ready to raise the limit on one of your credit cards. The lender requires a hard inquiry to approve an increase.  

• You're in the market for a new place to live. You find a great apartment, but before you can move in, you need to fill out an application and agree to a hard credit check. (Not all landlord credit checks are hard inquiries.)

• You have student debt you want to refinance with a private lender. The lender needs to check your credit to qualify you for a refinance loan. 

Credit monitoring can help you keep up with the number of hard inquiries on your credit report and look out for signs of potential fraud. You can check your credit yourself as many times as you want, and it won't affect your scores.