In this article, we’re answering “How long do hard inquiries stay on your credit report?” The short answer is two years.
But, it’s also important to consider how long a hard inquiry can impact your credit score. Not to mention, how many hard inquiries you can have before they become a problem.
We’ll answer all of these questions and more below.
This article is part of our free series on credit cards in the US, including how to get a US credit card with an ITIN number, which you can access here.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- How Long Do Hard Inquiries Stay On Your Credit Report?
- How Bad Are Hard Inquiries on Your Credit Report?
- Frequently Asked Questions
- Ready to Open Accounts With Banks in the USA?
How Long Do Hard Inquiries Stay On Your Credit Report?
Hard inquiries do stay on your credit report, but not for long. In fact, they only remain on your credit report for two years. That said, the negative impact of a hard inquiry will not last two years. In most cases, your credit score will return to normal within two to three months of the hard inquiry.
It’s important to understand how hard inquiries can impact your credit score. However, if this is your first time applying for startup business credit cards with no credit or a personal US credit card, click our article linked here before you get started.
Financial institutions and credit card providers use credit scores and FICO scores interchangeably to assess a borrower’s creditworthiness. Understanding what FICO stands for and how FICO is used is important to know when applying for credit cards.
Before diving in any further, if this is your first time visiting GlobalBanks, don’t forget to download your FREE US Banking Starter Guide. It’s designed to help non-residents with opening bank accounts at top financial institutions in the US.
How Bad Are Hard Inquiries on Your Credit Report?
Hard inquiries are not necessarily bad on your credit report. However, they do have a short-term negative impact on your credit score. This impact is usually only a few points. That said, each hard inquiry will appear on your credit report for up to two years.
Of course, hard inquiries are to be expected and credit providers require them in order to understand the creditworthiness of prospective borrowers. With this in mind, a reasonable number of hard inquiries on your credit report will be expected anytime you apply for credit.
How Many Points Do Hard Inquiries Take Off On Your Credit Report?
Hard inquiries usually take off a few points from your credit report. However, the impact of these points is usually gone within two to three months of the inquiry. Of course, you will still be able to see the inquiry on your credit report for up to two years.
Is 3 Hard Inquiries Bad?
Having three hard inquiries on your credit report is not automatically bad. However, it can impact your credit score by ten or more points. This is because most hard inquiries reduce your credit score by a few points every time. With this in mind, if you need to maintain a specific credit score in order to obtain a particular credit facility, you should be conscious about how many hard inquiries you approve.
How Many Hard Inquiries Is Too Many?
The number of hard inquiries that are considered too many is completely subjective. This is because there is no single rule that determines how many times your credit can be “pulled”. Instead, it is up to you to decide how many times this happens. In fact, this is part of the reason why a hard inquiry reduces the credit score, to demonstrate how eager someone is to access credit, which is often seen as a sign of being high-risk.
Frequently Asked Questions
Below are four of the most common questions we receive from people looking into how long does hard inquiries stay on your credit report. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
How Does a Hard Inquiry Affect Your Credit Score?
A hard inquiry affects your credit score by reducing your overall credit score by a few points. This can happen when you apply for a new credit card or other debt facility. In most cases, credit scores return to the original score within a couple of months. However, the hard inquiry will still appear on your credit report for up to two years.
How Much Do Credit Inquiries Affect Your Credit Score?
How much credit inquiries affect your credit score will ultimately depend on how many credit inquiries you have and in what time frame. That said, credit inquiries generally only reduce a credit score by a few points. But, multiple inquiries in a short window of time is usually seen as a sign of a high-risk client.
Are Hard Inquiries Considered Derogatory?
No, hard inquiries are not considered derogatory because they play an important role in the process of assessing a person’s creditworthiness. However, having a significant number of hard inquiries on your credit report can be negatively viewed by credit providers and will impact your credit score.
Can You Remove Hard Inquiries From Your Credit Report?
No, you cannot remove hard inquiries from your credit report. Instead, hard inquiries will remain on your credit report for up to two years. That said, the negative impact of a hard inquiry on your credit report typically only lasts for one year.
Ready to Open Accounts With Banks in the USA?
If so, you can get access to GlobalBanks USA (our dedicated US banking service) in just a few clicks.
GlobalBanks USA is a 100% personal account opening solution. It provides direct access to our team of US banking experts.
When you join, you receive…
+ Expert suggestions on where to open US bank accounts.
+ Step-by-step support to navigate opening US bank accounts.
+ Direct introductions to helpful and responsive bankers.
+ Plus, detailed guides to maximizing the value you get from your new US bank account.
And “yes!” GlobalBanks USA helps foreigners and non-resident individuals open bank accounts.
In fact, GlobalBanks USA even helps non-resident US LLCs and foreign & offshore entities.
To learn more about GlobalBanks USA, visit the product page to see how our team can help you successfully open US bank accounts!
