Hard Credit Inquiries: How Many Is Too Many?
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You might have applied for different forms of credit and seen on your credit report that your score has had several hard inquiries, but how many is too many?
Firstly, we need to establish what a hard inquiry is, consumer credit reporting agency Experian explains. When you apply for a line of credit, a lender will carry out a search of your credit report.
This can either be done as a soft inquiry, which is normally a finance quote that doesn’t impact your credit score. Or it can be done as a hard inquiry, which is an in-depth search of your credit report that can have a temporary negative effect on your credit score.
Related: Experian, Equifax, TransUnion Offering Free Weekly Credit Reports Through April 2021
One or two hard inquiries can have a negative impact on your credit report, Experian says. The more hard inquiries, the higher risk posed when applying for loans or credit cards.
Your credit score will recover, but abstaining from performing hard searches in a short period of time will help that score return to a healthy status. Hard searches diminish over time and are completely removed after two years Experian says.
Related: Credit Card Tips During a Crisis
You can help your credit score by checking your credit report and FICO score. Make sure your credit report is accurate and up to date. And be sure to pay any loan or credit card debts on time and only take out loans when necessary.
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