A hard inquiry, also known as a hard pull, is a request for your credit report by a lender or creditor when you apply for credit. Hard inquiries are recorded on your credit report and can potentially have a negative impact on your credit score.
When a lender or creditor makes a hard inquiry, it is typically because they are considering extending credit to you, such as a loan or credit card. The lender or creditor will review your credit report to assess your creditworthiness and determine whether to approve your application.
While a single hard inquiry may not have a significant impact on your credit score, multiple hard inquiries in a short period of time can lower your credit score. This is because multiple hard inquiries can signal to lenders and creditors that you are seeking a lot of credit, which could be perceived as risky.
Hard inquiries stay on your credit report for up to two years and can be seen by other lenders and creditors who review your credit report. However, the impact on your credit score typically decreases over time, and after about six months, the hard inquiry will have little or no impact on your credit score.
If your hard inquiry converts to an active credit line, such as a credit card or loan, it will be reported as a new account on your credit report. This can have a positive impact on your credit score if you use the credit responsibly and make timely payments. On the other hand, if you default on the credit or make late payments, it can have a negative impact on your credit score.
In summary, a hard inquiry is a request for your credit report by a lender or creditor when you apply for credit, and it can potentially have a negative impact on your credit score. Hard inquiries stay on your credit report for up to two years and can be seen by other lenders and creditors. If your hard inquiry converts to an active credit line, it can have a positive or negative impact on your credit score depending on your credit usage and payment history.
