Definition

• A credit inquiry is a record of a credit check conducted by a potential lender. Applications for certain types of employment will also result in a credit check and an inquiry.
  
  

Types of Checks

• A "hard pull" is a type of credit check made by a lender or employer. It can temporarily lower your credit score by a small number of points. A "soft pull" occurs when you pull your own credit or when a company pulls your credit for marketing purposes.
  
  

Time Frame

• Credit inquiries will remain on a consumer credit report for one to two years, depending on the credit bureau reporting the inquiry and the inquiry's purpose.
  
  

Function

• Inquiries remain on a credit report to provide potential lenders with information on your recent credit or loan applications. This can influence a lender's decision on whether to approve or deny your application.
  
  

Effects

• Too many credit inquires within a short period give the impression that you are "shopping for debt." This makes you a higher lending risk because it suggests you may be having financial problems.
  
  

Considerations

• If you're shopping for a loan to purchase a new home or car, multiple lenders may request your credit report. All inquiries that are received within a 30-day period are treated by the credit bureau as one inquiry. These inquiries will not adversely affect your credit score if they were made in the 30 days prior to scoring.