How Long Do Hard Inquiries Stay On Your Credit Report, and Its Effect on Credit Score

How Long Do Hard Inquiries Stay On Your Credit Report? 

Hard inquiries are a type of inquiry that takes place when you apply for loans, mortgages, credit cards, or other items. Now the lender checks your credit report to see whether to approve or deny your loan request and it appears on the credit report. These hard inquiries last for around two years. But its effect on the credit score lasts only one year, and later it disappears. 

When the number of hard inquiries increases within a short period, the lender becomes concerned. For instance, if you apply for a car loan, you compare rates with different lenders within a short period of time, it is considered as a single hard inquiry.

How Much Does A Hard Inquiry Affect Your Credit Score?

As a result of a hard inquiry, your credit score is temporarily lowered, usually by less than five points which lasts for a year. It might seem as though you're in the market many times for credit cards or loans, which worries lenders. However, other factors, like as how much credit you use and how quickly you pay your payments, have a greater impact on your score.

While applying for a mortgage or auto loan can result in multiple inquiries, your credit score won't be harmed as much because they are for the same purpose. However, it may negatively impact your score more if you're asking for multiple loans, such as a personal loan and credit cards. 

How to Remove Hard Inquiries From A Credit Report?

Below are five steps that can be followed to remove the hard inquiries from a credit report. Make sure you follow these.

1. Consider Inquiry Age:

• Your score is affected by inquiries for a year.
• If the inquiry is about to exceed this time limit, wait.

2. Dispute with Bureaus:

• Dispute with the credit reporting agencies if you are unable to resolve the issue with the creditor.
• File complaints with Experian, Equifax, and TransUnion, the three main credit bureaus.

3. Dispute with Creditor:

• Request that the creditor remove it if it is fake.
• If at all possible, support your claim with examples.

4. Check Legitimacy:

• Check out if the inquiry is genuine or fake.
• It is harder to delete legitimate questions.

5. Monitor with Service:

• To detect inquiries early, sign up for a credit monitoring program.
• Regularly check your credit reports for any updates.