How Long Do Credit Inquiries Stay On Your Credit Report?
Q: How long does a credit inquiry stay on my credit report?
A: Whenever a lender is authorized to pull your credit report, a credit inquiry is done. How long that remains on your credit record depends on the type of inquiry…
For soft inquiries
Also known as a soft pull, this refers to an involuntary credit check that was not initiated by you. Things like pre approved credit card offers and account reviews use soft credit inquiries. They typically stay on your credit report for at least one full year.
For hard inquiries
Called hard pulls, these are credit inquiries initiated by you. There are many things that can result in a hard credit inquiry that you may not even be aware of. Most of us know applying for a mortgage, credit card, or loan will result in one, but did you also know things like opening a bank account, getting cable/satellite TV, or a new cell phone provider can all result in hard pulls?
With Experian, hard inquiries will drop off your credit report at the end of the month following two years. With TransUnion and Equifax the hard inquiries will fall off exactly two years later.
How much will they affect your credit score?
Instead of asking how long credit inquiries stay on your credit report, you really should be more concerned with how long they impact your credit score?
With soft inquiries there is no impact to your credit score, so they are not something to worry about. On the other hand, hard inquiries will impact your credit score – the exact amount of impact depends on a number of factors (which are not all public because the FICO formula is secret, but they have said there may be a greater impact for those with shorter credit histories and few accounts). It is often presumed that the higher your score is to start, the more of an impact a hard credit check will have.
Although the hard inquiries remain on your credit report for two years, they have the most impact during the first six months. After a year has passed an inquiry will no longer be counted in the credit score, but it will still be visible to those who view your report.
Why do credit inquiries lower score?
According to FICO, there is a direct correlation between credit risk and the number of inquiries a person has. They state that those with 6+ hard credit inquiries on their report are up to 8x more likely to file bankruptcy than someone with zero credit inquiries.
Personally, I feel it is unfair that credit inquiries for things like utilities or a savings account can hurt us, but sometimes we have no choice but to take the hit.
When is it safe to apply for your next card?
Remember that a hard inquiry only counts against your score for 12 months and during that time, it has the most impact during the first 6 months.
So unless you need to apply for a mortgage or major loan within the next 7-8 months, I wouldn’t worry too much about getting another inquiry right now.
And remember in the long run, the more credit accounts you have, usually the best your score will be (assuming you manage them responsibility).
I reached a high 790 FICO with nothing but credit card accounts (7-10) by my early twenties. Obviously that took a lot of inquiries, but in the long run it was worth it.
I am a frequent flyer miles junkie. I admit it. But I like to travel without paying much to do so. Every so often, I go on a credit card application binge for credit cards with 40,000-75000 free “miles” available. I did so recently, and received two new Citi cards with a total of 90,000 miles included and new available credit of $21,300. I also received a new Barclay’s card that included 40,000 miles and new available credit of $10,000, plus a Chase card with 35,000 miles and new available credit of $5000. I already have 4 other credit cards with a total of $28,000 credit available. (I have never used more than 8% of my available credit). I do not ever carry a balance on any of my accounts, and have never paid a late fee or paid a dime in interest. I have paid a couple of “annual fees” because that’s the only way you get most frequent flyer cards.
I have had 4 hard pulls in the past month from Equifax, 2 from Experian, and just 1 from TransUnion. My average FICO scores took a hit of 1-3 points, lowering my average score to 770, but my Vantage score actually increased by 9 points, and that score is used by the top 5 credit card issuers in the US. Every one of my applications was approved on line instantly, meaning that the only metric they used was the credit scores.
I really doubt that hard pulls mean very much when you have a great credit history with 100% on time payments, and a very low credit utilization.
Obviously, anyone who actually took a look at my actual reports would see that I am not desperate for more credit…I have far more than I will ever use. I’m only desperate for free frequent flyer miles!
When the hard inquires “fall off” does that reflect in a higher credit score? Thank you
I just turned 19 and I just couldn’t figure out WHY my credit scores was not building! I was getting so frustrated. I had a checkings and savings account.. I had a phone line of my own through a major company.. I just didn’t get it. So out of the blue, I was doing some shopping and I happened to apply for a Victoria’s Secret Credit card… BEST CHOICE EVER! I’m finally starting to build credit and learning how to keep it up.
Unfortunately none of those other things you mentioned (phone line, checking, savings) build credit. They are only reported to the bureaus if you default and in that case, it’s obviously a negative.
To Claribel…I have 38k of unused credit from about 8 different cards…amex, citi, chase freedom, merrick, and a few others, but my secured Capital One said there was no graduation program….you only get the security deposit back when you cancel the card, at least that is what I was told. The Capital One was the only secured one I got because I wanted my score to jump up a little….and it did, by ten points. I do hope that the rep was wrong about the graduation but if not I don’t care…just make sure the info you put out there is correct. Thanks and happy holidays! By the way…chase freedom is a great card…my favorite..followed by my barclays card.
When I purchased my car they looked at 5 Banks which pulled 5 hard credit inquiries ; making me have 12 n my credit report now , I have never been late on none of my payments ; it’s bull that this will make or the credit people would think this makes u high risk. But what u going to do , they should revise this and don’t make it count. They should see ur payments over the years !
The same thing happened to me. I was looking at cars when I was 18 and I told them I only wanted to deal with my credit union. I wouldn’t have per approval till the next day though, so without my permission they ran 9 hard credit inquires. I had no idea they had done this until I started getting loan rejection letters in the mail. Because of them my credit score dropped and the interest rate I got on my car went waaaay up.
I went to buy my first car and the car dealerships screwed me majorly with hard inquiry’s they dont care they are fucking u over for 2 years they will just send ur info to everybank and try and get a paycheck out of you. I think this is a system that needs to be rethought its not helping anyone. I have 13 hard inqueries it went down to 12… i have about 500 in credit card debt… Im not even close to going bankrupt I work a full time job and I get denied on anything I try credit wise thanks to those 12 inquiry’s but hey next january those hits will be off my report and I can finally get a home loan… I’m only 23 but if you work hard and learn how to play the credit game before it hurts you, you can do great things!
That so true. I have a car loan under my name and i wasnt able to make a trade for a newer vechile because I had 6 hard inquiries from different dealerships. And ive never been behind on my payments. But after 6 months u should be good if u dont get anymore inquiries.
Justin and Martin, get a target card or something like it. Just something to show you make payments on time will increase your credit and prepare you for larger loans, it won’t take long.
a local credit union by me offers a 200$ visa card when you sign up for their college aged (18-24) checking and savings account they are all linked together for easy management and u dont have to be approved look for something similar altura credit union.
I have 10 soft and hard pulls but my ex wife ran my credit as well what do I do ?
Credit modeling is ignorant of the real world. Most credit card inquiries arise because we as consumers are trying to collect the sign up bonuses. Really, those with credit inquiries of this nature should get boosted ratings for being financially smart, not a lowered rating. Bunch of morons I tell you.
I put a contract on a short sale, and was approved, I had 2 offers and with the cheaper lender, this pulled 2 hard inquires, the bank with the seller had to approve the short sale and they pulled a hard inquires.
The seller delays had the lender pull another right before closing date. Then the seller backed out of the contract for no reason and I had to move in to a apt which pulled another inquiry.
Now I’m looking at buying another home but my score dropped 117 points from a 802 and now if I go try to get another loan, my rates will be higher. How can I remove the hard inquires? Can you dispute them this is crazy. I never had a late payment in 10 years have $70 credit limit with 0 balance on it.
Type errors correction: the lender pull another one right before closing date
$70K of credit unused and my car 2011 is paid in full, along with my 2003 truck
William,
I’ve had the same thing happen to me. While in the process of finding a home, and within a four month period I had ten hard hits. I did authorize two separate lenders to pull my credit but not like this. I thought they’d do one hard hit a piece then keep track with soft pulls. My credit has dropped almost 100 points. If you learn of anyway that you can fix what also happened to you please let’s know.
Thaks
Hi I have 6 hard inquires on my report. 4 of them though are from when I was buying a car, I had checked with 4 banks to get the best rate. Is there a way to make it so it’s not affecting my credit?
Martin: secured back loans will help establish. If you have $500 in a bank savings. go to the load officer at the bank and ask for your savings to be used as collateral for a small personal loan. pay on that load for 6 months and then pay it off. now you have a credit history. Keep doing this for about two years and you should be on your way to having very good credit.
i think it is not right that people are refused credit just beacuse they dont have a credit history?? pleas tell me how anybody is suppose to get a credit history if we dont give them credit in the first place!! crazy
Martin Slattery, That’s exactly what I am dealing with. I just turned 18 about six months ago and graduated high school in may. I have a full time job and I am working on getting my MBA through an online program from a university but I can’t even get approved for a secured credit card let alone a student card. It is completely unfair. It’s like they think that I personally caused the recession in 2008 or something. At this point I think I would rather have bad credit so that I atleast know what I am working with.
Have you tried CapitalOne? They have the best secure credit card program. I used them and after a year in a half the upgraded my card to unsecured and sent my deposit back. Good luck!!!
i am in the same boat you are in man i trying to buy a car the credit cards company say i need a cosigners