hard inquiry
A credit check initiated by a lender when you apply for new credit, which can temporarily lower your credit score by a few points.
Example
“Each time she applied for a new credit card, a hard inquiry appeared on her credit report.”
Memory Tip
A HARD inquiry HURTS your score (temporarily). A soft inquiry is harmless.
Why It Matters
Hard inquiries directly impact your credit score, so understanding when they occur helps you make strategic decisions about applying for credit. Multiple hard inquiries in a short period can significantly damage your credit profile, making it harder to qualify for loans or credit cards at favorable rates.
Common Misconception
Many people believe that simply checking their own credit score causes a hard inquiry, but personal credit checks are soft inquiries that do not affect your score. Hard inquiries only happen when a lender or creditor pulls your credit report as part of an application process for new credit.
In Practice
When you apply for a mortgage, the lender performs a hard inquiry that might lower your score by 5-10 points. If you apply for three different credit cards within two weeks, each application generates a separate hard inquiry, potentially reducing your score by 15-30 points combined, which could result in higher interest rates or loan denials.
Etymology
From Old English 'heard' + Latin 'inquirere' (to search into). A formal, scored credit check.
Common Misspellings
Check your credit score free — no impact
Related Terms
More in credit
Other credit terms you should know
See Also
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