Key takeaways about credit inquiries:
- Credit inquiries are one of the most misunderstood aspects of credit scores and how they’re calculated.
- There are two types of inquiries: hard inquiries and soft inquiries.
- Hard inquiries do impact your credit score.
- Soft inquiries do not impact your credit score.

Whether you’re applying for a mortgage, auto loan, or a new credit card, lenders use your credit score to assess your creditworthiness. The higher your score the better, but with every credit application comes a possible negative impact on your score.
That’s just one of the reasons why the concept of credit can be confusing for many people. Credit inquiries are one of the most misunderstood aspects of credit scores and how they’re calculated.
At CredEvolv, we believe that understanding your credit is essential to improving it. If inquiries have dinged your score, don’t worry – there are ways to turn things around.
Let’s break down what credit inquiries are, how they affect your credit score, and what you can do to improve your financial standing.
What are credit inquiries?
When you apply for a new line of credit, the lender checks your credit report to assess the risk of lending money to you. This check is known as a credit inquiry. There are two types of inquiries: hard inquiries and soft inquiries.
Hard inquiries do impact your credit score. While a single hard inquiry may only lower your score by a few points, multiple hard inquiries in a short period can be a red flag to lenders.
What’s the difference between hard inquiries vs. soft inquiries?
A hard inquiry (or “hard pull”) occurs when a lender or creditor reviews your credit report as part of a lending decision. Hard inquiries typically happen when you:
- Apply for a credit card.
- Take out a mortgage.
- Finance a car.
- Request a personal loan.
- Open a new utility account.
Hard inquiries do impact your credit score. While a single hard inquiry may only lower your score by a few points, multiple hard inquiries in a short period can be a red flag to lenders. Too many inquiries suggest you might be taking on more debt than you can handle, making you appear riskier.
A soft inquiry (or “soft pull”) happens when someone reviews your credit report, but not as part of a credit decision. Soft inquiries occur when:
- You check your own credit report.
- A lender pre-approves you for a credit card.
- An employer runs a background check.
- A landlord screens you for a rental property.
Soft inquiries do not affect your credit score. You can check your own credit report as often as you’d like without any negative consequences.
How do credit inquiries affect your credit score?
Your credit score is calculated using several factors. Inquiries fall under the New Credit category, which makes up about 10% of your FICO score. While this is a smaller portion of your overall score compared to payment history or credit utilization, it still plays a role – especially if you’re applying for multiple lines of credit in a short time.
The impact of a hard inquiry depends on your overall credit profile. If you have a long history with an established pattern of on-time payments, a single inquiry may have little effect. If you have a short history or already have multiple inquiries, another one could lower your score more significantly.
Hard inquiries remain on your credit report for two years. Their impact on your score generally diminishes after one year.
How many hard inquiries are too many?
While there’s no strict rule on how many inquiries are “too many,” here are some general guidelines:
- 1-2 inquiries per year = minimal impact
- 3-4 inquiries per year = may raise concerns
- 5+ inquiries in a short period = high risk to lenders
To clarify that last point, credit scoring models recognize that rate-shopping for a mortgage or auto loan is different than applying for multiple credit cards. If you apply for the same type of loan within a short window (typically 14-45 days), those inquiries usually count as a single inquiry for scoring purposes.
How can I minimize the impact of credit inquiries?
- Apply for credit only when necessary. Avoid applying for multiple credit cards or loans at once.
- Be strategic about shopping for loans. When rate shopping, do so within a short timeframe to minimize the impact on your score.
- Check your own credit regularly. Since soft inquiries don’t affect your score, you should monitor your credit report to stay informed (you can do so via Equifax, Experian, TransUnion, and AnnualCreditReport.com.
- Avoid unnecessary pre-approvals. While pre-approved credit card offers can be tempting, applying for too many new accounts can lead to multiple hard inquiries.
How can CredEvolv help me recover from excessive credit inquiries?
If your credit inquiries have gotten out of hand and your score has taken a hit, there’s good news: you can recover! CredEvolv is here to help.
Our platform connects you with certified, nonprofit credit counselors who can create a customized Success Plan to improve your credit. Depending on your specific situation, that plan can include any or all of the following:
- Personalized credit review. We’ll analyze your report to determine how inquiries and other factors are affecting your score.
- Credit-building strategies. Our counselors provide expert guidance on responsibly managing credit and minimizing future hard inquiries.
- Debt management assistance. If multiple inquiries stem from financial strain, we can help you create a budget for chipping away at your debt burden.
- Ongoing support and education. Our partners, platform, and website provide access to tools and resources to keep you on track toward better credit health.
Final thoughts on credit inquiries
While hard inquiries can lower your score, their impact is temporary. By practicing smart credit habits and seeking support from professionals, you can rebuild and strengthen your credit over time.
At CredEvolv, our mission is to help you take control of your financial future. Whether you’re working to reduce the impact of inquiries, improve your payment history, or develop a smarter credit strategy, we’re here to guide you through it all.
Take the first step today! Enroll in the CredEvolv platform and start moving your credit score in the right direction!