Hard Inquiry
CreditGlossary term
Definition
A credit check that occurs when a lender reviews your credit report as part of a lending decision, such as when you apply for a credit card or loan. Hard inquiries can lower your credit score by a few points and remain on your credit report for two years. Multiple hard inquiries in a short period for the same type of loan, like a mortgage, are typically grouped together and counted as one.
Related terms
- Soft InquiryA credit check that does not affect your credit score, typically occurring when you check your own credit or when a company pre-approves you for an offer. Soft inquiries also happen during background checks and when existing creditors review your account. Unlike hard inquiries, soft inquiries are only visible to you on your credit report.
- Credit ReportA detailed record of your credit history maintained by credit bureaus, including your accounts, payment history, balances, and any public records like bankruptcies. Lenders, landlords, and sometimes employers review your credit report to assess your financial reliability. You are entitled to one free credit report per year from each of the three major bureaus through AnnualCreditReport.com.
- FICO ScoreA credit score developed by the Fair Isaac Corporation, ranging from 300 to 850, that lenders use to evaluate your creditworthiness. It is calculated based on five factors: payment history, amounts owed, length of credit history, new credit, and credit mix. A higher FICO Score generally means better loan terms and lower interest rates.
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