This article was originally published on March 3, 2025, and was updated as of November 24, 2025 to reflect timely credit information.
Key takeaways about credit inquiries:
- There are two types of credit inquiries: hard and soft
- Hard inquiries can impact your credit score
- Soft inquiries do not affect your score at all
- Too many hard pulls in a short time can signal financial risk
- You can recover from excessive inquiries with the right help and plan
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.
Credit Inquiries: One of the Most Misunderstood Parts of Your Score
Your credit score isn’t just a number – it’s a summary of how lenders perceive your financial trustworthiness. But one of the most confusing parts of how your score is calculated? Credit inquiries.
Inquiries pop up every time someone checks your credit – but not all checks are the same, and not all impact your score. Let’s break it down clearly, so you know what matters, what doesn’t, and how to recover if your score took a hit.
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 Is a Credit Inquiry?
A credit inquiry happens when someone – you, a lender, a landlord, even an employer – pulls your credit report to assess your financial history.
There are two types of credit inquiries:
- Hard inquiries (can affect your score)
- Soft inquiries (do not affect your score)
Knowing the difference helps you take control of your credit activity.
Hard Inquiries vs. Soft Inquiries
What Is a Hard Inquiry?
A hard inquiry (also known as a hard pull) occurs when a lender checks your credit report because you’ve applied for new credit. Common examples include:
- Applying for a mortgage, auto loan, or credit card
- Opening a new utility account or cell phone plan
- Seeking a personal loan
💥 Impact: Hard inquiries can lower your credit score — often by just a few points. However, multiple hard pulls in a short time can add up and make you look risky to lenders.
What Is a Soft Inquiry?
A soft inquiry (soft pull) happens when your credit is checked for informational or non-lending purposes. These do not affect your score and are often invisible to lenders.
Examples include:
- Checking your own credit report
- Receiving a pre-approved credit card offer
- A background check from an employer
- A landlord screening your rental application
Good to know: You can check your own credit as often as you want without penalty.
How Much Do Inquiries Affect Your Score?
Credit inquiries fall under the “New Credit” category in your FICO® Score breakdown — accounting for about 10% of your overall score.
While that’s smaller than factors like payment history or credit utilization, it still matters — especially if you’re in the middle of applying for loans or credit cards.
The Impact Depends on Your Credit Profile:
- Strong profile: If you have years of on-time payments and low debt, a hard inquiry may have little effect.
- Thin or new credit file: If your history is short or already includes other inquiries, another hard pull can cause more noticeable damage.
How long do inquiries last?
- Hard inquiries remain on your credit report for two years
- Their impact on your score usually fades after 12 months
How Many Hard Inquiries Is 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.
Tips to Minimize the Impact of Credit Inquiries
Want to avoid unnecessary dings to your score? Here’s how to stay smart with credit checks:
- Apply for Credit Only When You Need It: Don’t open new cards or take out loans just because you’re offered a deal. Be intentional.
- Shop for Rates Within a Short Time Frame: If you’re comparing lenders, do all your applications in the same 2–3 week period to minimize score impact.
- Check Your Own Credit Regularly: Use services like AnnualCreditReport.com or your bank’s credit tools to stay informed — without hurting your score (you can do so via Equifax, Experian, TransUnion)
- Be Cautious With Pre-Approvals: Not all pre-approvals lead to hard inquiries — but applying after receiving one can. Read the fine print before accepting.
What If My Credit Score Dropped from Inquiries?
If you’ve applied for a few too many credit lines and your score has dropped, don’t panic — you’re not stuck. The good news is that you can bounce back with the right guidance.
That’s where CredEvolv comes in.
How CredEvolv Helps You Rebuild After Too Many Inquiries
We know credit setbacks happen — and we’re built to help you recover. Here’s how our platform and network of HUD-certified, nonprofit credit counselors can get you back on track:
- Personalized credit review. Our experts will assess your credit report and identify how inquiries and other issues are affecting your score.
- Credit-building strategies. We’ll help you manage your accounts, avoid unnecessary inquiries, and use credit in a way that builds long-term strength.
- Debt management assistance. If your inquiries stemmed from financial stress, our team can help you build a smarter budget and reduce your reliance on credit.
- Ongoing support and education. Get tools, checklists, and ongoing support so you don’t have to navigate your credit journey alone.
Real Help. Real Progress.
The effect of hard inquiries fades – but smart habits last. With a trusted counselor and a plan that fits your life, you can improve your score, boost lender confidence, and move closer to your goals.