A ‘Hard Enquiry’ happens when you have applied for a credit card or loan in recent times and the lender accesses your credit report to check whether you qualify.
A hard enquiry has minimal impact on your credit score. But if you apply for multiple credits at the same time and all of them result in hard enquiries, this may have some negative impact on your credit score.
How long do hard enquiries stay on my credit report?
A hard enquiry stays on your report for 24 months but they impact your credit score only for the first year or so.
Will my credit score go up if these hard enquiries are removed from my credit report?
Hard enquiries contribute very little towards your credit score and may not have much impact when removed. However, if you find any fraudulent hard enquiries, you should get them removed.
How can I ensure that hard enquiries don’t affect my credit score?
You shouldn’t apply for too many loans in a short span of time. When there are multiple hard enquiries within a short period, your credit scores may drop big time. So place your applications with enough gap in between so that they don’t impact your credit score.