PH. +234-904-144-4888

Do You Get a Hard Inquiry If You’re Approved? Answering All Your Questions About Credit Inquiries

Post date |

A hard inquiry occurs when you apply for new credit and the creditor pulls your credit file. Hard inquiries stay on your credit report for two years, but they only affect your FICO Score for 12 months.

A hard inquiry, also called a “hard pull” or “hard credit check,” occurs when you apply for a loan, credit card or line of credit.

Hard inquiries show up on your credit reports for up to two years and can affect your credit score. While that impact is usually minimal and temporary, its important to understand when they happen, how theyll impact you and why its best to keep them to a minimum.

Applying for new credit can be an exciting yet nerve-wracking process You may find yourself anxious about whether you’ll get approved and how it could affect your credit scores One question that often pops up is Do you get a hard inquiry on your credit reports even if you’re approved?

The short answer is yes. Hard inquiries are placed on your credit reports whenever a lender checks your credit in response to an application. Getting approved or denied doesn’t change the fact that they accessed your credit information.

But what exactly are hard inquiries? And how much do they impact your credit? Let’s explore these common questions to gain a full understanding of credit inquiries.

What is a Hard Inquiry?

A hard inquiry, also known as a hard credit check or hard pull occurs when a lender requests your credit report to make a lending decision. This typically happens when you apply for a credit card auto loan, mortgage, or other line of credit.

Hard inquiries allow creditors to review your credit history, including:

  • Payment history
  • Outstanding debts
  • Credit age
  • Recent credit applications

They use this information to determine your creditworthiness and make a decision on whether to approve your application.

Do Soft Inquiries Exist?

In contrast to hard inquiries, soft inquiries, or soft pulls, are credit checks that do not impact your credit scores. These include:

  • Checking your own credit reports
  • Credit checks by potential employers
  • Pre-qualified credit card or loan offers (where you haven’t applied)

Soft inquiries allow creditors and other parties to review your credit information without affecting your scores.

Why Does a Hard Inquiry Occur Even If I’m Approved?

The purpose of a hard inquiry is for the lender to evaluate your creditworthiness. So they will place one on your reports regardless of the application outcome.

Approval simply means you met the lender’s criteria, not that they didn’t check your credit. Hard inquiries indicate you’ve applied for new credit, which is an important part of your credit history.

How Long Do Hard Inquiries Stay on Your Credit Reports?

Hard inquiries can remain on your Equifax, Experian, and TransUnion credit reports for up to two years. However, they typically only impact your credit scores for about 12 months.

According to FICO, older inquiries have a diminishing impact on your scores. After a year, most scoring models won’t weigh them as heavily.

Can You Remove Hard Inquiries?

Hard inquiries are viewable by others and cannot simply be deleted or removed. If you spot an unauthorized inquiry, you can dispute it with the bureaus. But if it’s legitimate, it will remain until it naturally falls off your reports.

The only way to “remove” them is to wait until they expire after two years. Monitoring your credit reports regularly can help you identify any suspicious activity.

How Many Hard Inquiries Are Too Many?

As a general rule, having one or two hard inquiries from normal credit applications should not alarm most lenders. However, five or more inquiries in a short timeframe may be a red flag, suggesting you’re desperately seeking credit.

Too many inquiries can negatively impact your scores and approval odds. As such, avoid applying for multiple credit lines within a few months unless you’re rate shopping for a major loan like a mortgage or auto loan.

Do Pre-approvals Trigger Hard Inquiries?

Pre-qualified or pre-approved credit card and loan offers are soft inquiries that allow lenders to evaluate if you may qualify.

But accepting a pre-approval and moving forward with the application will result in a hard inquiry once you formally apply and submit your information. Avoid applying for multiple pre-approvals in a short period.

Can I Check My Own Credit Without a Hard Inquiry?

Monitoring your own credit scores never results in a hard inquiry. Services like Credit Karma allow you to easily check your credit scores as often as you want without impacting them. This helps you identify suspicious activity and maintain good credit health.

Reviewing your actual credit reports from the bureaus also only generates soft inquiries that don’t affect your scores. AnnualCreditReport.com offers free weekly reports.

Tips to Minimize the Impact of Hard Inquiries

  • Check your credit reports routinely to catch errors early
  • Dispute any unauthorized hard inquiries
  • Spread out loan and credit card applications over time
  • Limit applications to only credit you reasonably need

Making prudent applications and maintaining healthy credit habits are the best ways to reduce the impact of hard inquiries on your scores.

The Bottom Line

While getting approved for credit is positive, hard inquiries get placed on your credit reports regardless of the application outcome. They allow lenders to evaluate your creditworthiness.

Try to limit hard inquiries by only applying for credit you truly need. Too many inquiries over a short period can denote high credit risk. But a single inquiry here and there is unlikely to hurt your scores much, especially if you have a lengthy positive credit history.

Monitoring your credit reports regularly lets you catch any suspicious activity and ensures your hard inquiries are legitimate. Be patient, as hard inquiries take up to two years to disappear from your credit reports. Maintaining healthy credit habits is key to minimizing their impact in the meantime.

do you get a hard inquiry if youre approved

What Is a Hard Inquiry?

A hard inquiry is a request by a lender to view your credit report as part of an application for credit.

Anytime you apply for credit, the lender will evaluate your creditworthiness in a process known as underwriting. Part of the process typically involves pulling one or more of your credit reports to assess your past and current financial behavior, such as payment history and balances on loans and credit cards. A record of the credit check will be added to each credit report the lender viewed.

Youll typically incur a hard inquiry in the following situations:

  • Applying for a credit card
  • Opening a line of credit
  • Buying a vehicle with an auto loan
  • Purchasing a home with a mortgage loan
  • Applying for a personal loan
  • Applying for a private student loan or a federal direct PLUS loan
  • Requesting a credit line increase on a credit card

In some cases, you may also undergo a hard credit check when a landlord reviews your credit history for a lease application.

Hard Inquiry vs. Soft Inquiry

As you review your credit reports, youll likely also see soft inquiries. While hard and soft inquiries both remain on your reports for two years, their purpose and credit impact are different.

Heres a comparison of the key differences between hard and soft inquiries.

Hard Inquiry vs. Soft Inquiry

Hard Inquiry Soft Inquiry
Can temporarily lower your credit score Doesnt affect your credit score
Typically occurs when you apply for credit May occur for a variety of reasons
Requires your permission May not require your permission
Remains on your credit reports for two years Remains on your credit reports for two years

While a hard inquiry is the result of an application for credit, a soft inquiry is not related to a specific loan or credit card application. A soft inquiry occurs when you check your own credit or when a company wishes to prequalify you for a loan offer, but you havent yet submitted a full application. Unlike hard inquiries, soft credit checks have no impact on your credit score.

How long Hard Inquiry Stays on YOUR Credit Report (& how long a Hard Pull affects YOUR credit score)

FAQ

Do hard inquiries go away if approved?

Hard inquiries stay on your credit reports for up to two years before they fall off naturally. If you have legitimate hard inquiries, you’ll likely need to wait until the 24-month period is over to see them disappear.

Is getting approved for a credit card a hard inquiry?

Yes, getting approved for a credit card typically involves a hard inquiry, which can slightly lower your credit score.

What triggers a hard inquiry?

Quick Answer. A hard inquiry occurs when you apply for new credit and the creditor pulls your credit file. Hard inquiries stay on your credit report for two years, but they only affect your FICO Score for 12 months.

Does pre-approval count as a hard inquiry?

Credit card pre-approval doesn’t typically impact your credit scores because the process usually involves a soft credit inquiry. Applying for a credit card that you’re pre-approved for requires a hard credit inquiry, which could cause credit scores to drop temporarily.

Leave a Comment