What Is a Hard Inquiry?

A hard inquiry, also known as a hard pull, occurs when a lender checks your credit report to make a lending decision. This type of inquiry is recorded on your credit report and can potentially impact your credit score. Hard inquiries are typically made by lenders such as banks, credit card companies, and mortgage lenders.

How Do Hard Inquiries Impact Your Credit Score?

Hard inquiries can have a minor impact on your credit score, often resulting in a small drop of 10 points or less. The exact impact depends on the overall state of your credit report and the type of credit score being used. For instance, FICO® Scores and VantageScore® have different rules for how they treat hard inquiries.

FICO® Scores and Hard Inquiries

• Considers hard inquiries from the past 12 months.
• Applies a 30-day buffer for student, auto, and home loan applications.
• Deduplicates multiple inquiries from the same type of application within a 45-day window.

VantageScore® and Hard Inquiries

• Counts inquiries from the previous 24 months.
• Deduplicates most hard inquiries within a 14-day window, even if they are from different types of credit applications.

How Many Hard Inquiries Is Too Many?

There is no specific number of hard inquiries that is considered too many. However, multiple hard inquiries in a short period can signal to lenders that you are seeking a lot of new credit, which can be a red flag. It’s important to be strategic about when and how often you apply for new credit.

How to Avoid Too Many Hard Inquiries

To minimize the impact of hard inquiries on your credit score, consider the following strategies:

• Rate shop within a 14-day period: When shopping for auto, home, or student loans, try to submit all applications within a 14-day window to limit the impact on your credit score.
• Get preapproved: Some lenders offer preapprovals with a soft credit check, which does not affect your credit score.
• Focus on other scoring factors: Paying your bills on time and reducing your credit utilization ratio can help improve your credit score more than occasional hard inquiries will hurt it.

How to Remove Inaccurate Inquiries From Your Credit Report

If you notice hard inquiries on your credit report that you did not authorize, it could be a sign of identity theft. You have the right to dispute these inquiries and have them removed from your report. Contact the credit bureau that reported the inquiry to start the dispute process.

Monitor Your Credit for New Inquiries

Regularly monitoring your credit report can help you stay on top of new inquiries and other changes. Many services offer free credit report monitoring and alerts, so you can quickly address any unauthorized activity.

Contact O1ne Mortgage for Expert Mortgage Services

At O1ne Mortgage, we understand the importance of maintaining a healthy credit score. Our team of experts is here to help you navigate the mortgage process and find the best loan options for your needs. Call us today at 213-732-3074 for personalized mortgage services and advice.