 TITLE: What Is a Hard Inquiry and How Does It Affect Credit? CONTENT: How Do Hard Inquiries Affect Your Credit Score?\n-----------------------------------------------\nHard inquiries have a negative impact on your credit score, in the short term at least. While a hard inquiry will stay on your credit report for two years, it will usually only impact your credit for a few months. Too many hard inquiries in a short time could make it look like you're seeking loans and credit cards that you may not be able to pay back.\nThere are many factors that contribute to your credit score, however. The most important are payment history—which accounts for 35% of your FICO® Score☉ —and credit utilization, or the amount of available credit you're using, which makes up 30%. Applications for new credit account for just 10% of your score, according to FICO, so a hard inquiry won't necessarily make a major impact.\nThere are times when a hard inquiry is unavoidable, such as when you're applying for a mortgage or an auto loan. In these cases the credit bureaus recognize that you might submit applications to multiple lenders for one loan to compare rates.\nAs a result, you generally won't be penalized for several inquiries appearing on your credit report for one loan type if they're made within a 14- to 45-day period. On the other hand, applying for multiple credit cards and a personal loan in one week may be a red flag that you're seeking credit you can't afford. These will not be treated as one inquiry. END