Do Hard Inquiries Go Away If Approved? What You Need To Know

When you apply for new credit, such as a credit card, auto loan, or mortgage, the lender will request to check your credit report. This results in a hard inquiry on your report, which can temporarily lower your credit score. But what happens after you’re approved – do those hard inquiries eventually disappear from your credit history?

The short answer is yes, hard inquiries do go away after a period of time, whether you’re approved or denied for the credit application. However, the impact on your credit score fades much faster than the inquiry itself stays on your report. Here’s what you need to know about how long hard inquiries remain if approved, and how to minimize any negative effects.

How Long Do Hard Inquiries Stay on Your Credit Report?

A hard inquiry can stay on your credit report for up to two years, although the impact on your score typically goes away much sooner.

Here are some key facts about the lifespan of a hard credit check:

• Remains on your report for 12-24 months A hard inquiry will show on your Equifax Experian and TransUnion credit reports for 12 to 24 months before automatically dropping off. The exact length depends on the credit bureau.

• Stops impacting your scores within 12 months: While it remains on your report for up to 2 years, a hard inquiry will only affect your FICO or VantageScore for about 12 months. Your score may drop a few points initially, but will rebound as the inquiry ages.

• Falls off sooner if not “re-reported”: Most hard inquiries fall off your credit reports sooner than 2 years if the lender does not “re-report” the inquiry to the credit bureaus on a monthly basis. For example, a credit card inquiry may drop off within 6 months.

• Multiple inquiries within 45 days often count as one If you rate shop for an auto, mortgage, or student loan within a short period, credit scoring models generally lump the hard checks together and count them as a single inquiry, minimizing the damage to your score

Do Approved Applications Impact Your Credit Differently?

Whether you’re approved or denied credit after a hard inquiry, it will have the same effect on your credit scores. Here are some key points:

• Inquiries count the same either way: The fact that you were approved or denied for a new credit card or loan doesn’t affect how the hard inquiry influences your scores. The initial score drop is the same.

• New accounts affect your scores too: Being approved for new credit also comes with its own impacts. For instance, opening a new credit card can help your credit utilization ratio and length of credit history, but can also lower your average account age.

• Denials linger with no benefit: If denied, the hard inquiry’s negative impact remains on your credit report without the potential positive effects of a new account.

So in a nutshell, while being approved or denied for credit doesn’t change the inquiry itself, approved applications come with their own score implications that denied ones don’t.

How to Minimize the Credit Score Damage

While hard inquiries cause an initial drop in your credit scores, the impact is usually minor and temporary. For example, a single hard credit card inquiry may lower your FICO score by only a few points. Here are some tips to minimize the damage:

• Avoid unnecessary inquiries: Only apply for credit when you need it to avoid accruing unnecessary inquiries. Limit applications to once or twice per year.

• Compare rates within a short window: When rate shopping for a major loan, concentrate applications within a 45 day span so they count as just one inquiry.

• Ask about pre-approvals: Many lenders can tell you if you qualify for pre-approved offers, which only show up as soft inquiries that don’t hurt your scores if you accept.

• Improve other credit factors: If your score takes a hit, focus on responsible credit management, like paying bills on time, keeping balances low, and limiting new applications.

While hard inquiries may sting your credit score a bit, the impact is short term. Being approved or denied for new credit does not change how long the inquiries remain on your reports. With responsible credit habits over time, you can offset negative effects and achieve your credit goals.