Why is Hard Inquiry still on after 2 years?

The Impact of Hard Inquiries on Credit Scores

When you apply for new credit, such as a loan or credit card, the lender will typically conduct a hard inquiry on your credit report. This inquiry is a record of the application and can temporarily lower your credit score. However, hard inquiries generally only impact your score for one year. After two years, they are removed from your credit report.

Why Hard Inquiries Remain on Credit Reports

Even though hard inquiries only affect your credit score for one year, they remain on your credit report for two years. This is because credit bureaus want to keep a record of your credit-seeking behavior. This information can help lenders assess your creditworthiness and make decisions about extending credit to you.

The Importance of Monitoring Hard Inquiries

It is important to monitor your credit report for hard inquiries, especially if you are planning to apply for new credit in the near future. Multiple hard inquiries in a short period of time can be a red flag for lenders and may lead to a lower credit score.

How to Avoid the Negative Impact of Hard Inquiries

There are several ways to avoid the negative impact of hard inquiries on your credit score:

• Limit credit applications: Only apply for credit when necessary.
• Use soft inquiries: Some lenders offer soft inquiries, which do not impact your credit score.
• Dispute inaccurate inquiries: If you see a hard inquiry on your credit report that you do not recognize, you can dispute it with the credit bureau.

Conclusion

Hard inquiries can have a temporary impact on your credit score, but they are typically removed from your credit report after two years. It is important to monitor your credit report for hard inquiries and to avoid excessive credit applications. By following these tips, you can minimize the impact of hard inquiries on your credit score.