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

Home Forums Credit Reports & Scores How many points does a hard inquiry affect my credit score?

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    Jordan Moore
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    Team StellarFi
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    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.

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StellarFinance, Inc. and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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