How many points does a hard inquiry affect my credit score?

Generally, hard inquiries are conducted by lenders to assess your risk to them as a borrower. Hard inquiries are conducted when lenders expect a firm financial commitment from borrowers. They pull your credit report(s) from the credit bureaus to take a look at your credit files which include your credit history, income, and other information. Hard inquiries are usually conducted when you apply for a new credit card or loan. Some landlords also conduct a hard inquiry before renting out an apartment. Sometimes, putting in a new phone or utility application also causes a hard pull.

A hard inquiry can lower your credit score by ten points. These inquiries remain on your credit report for up to two years. A credit card application can knock off a few points from your credit score, but this does not really affect your score too much and you can recover those points in a short period of time. It is only when you apply for multiple credit cards in a short period of time that your credit score is seriously affected. Each new application reduces your score by a few points. For some on the borders of “good” and “fair” credit, this can mean serious damage to their credit score. It is usually advised to have at least a 90-day gap between each new credit card application.