How long does a hard credit search last?

Hard Credit Searches: Impact and Duration

When you apply for credit, such as a credit card or loan, the lender typically conducts a hard credit search. This process involves pulling your credit report from one or more credit bureaus and examining it to determine your creditworthiness.

Duration of Hard Credit Searches

Hard credit searches remain on your credit report for two years. However, their impact on your credit score starts to wane after one year. During this time, lenders consider these inquiries when evaluating your creditworthiness.

Impact on Credit Scores

Hard credit searches can temporarily lower your credit score. This is because they indicate to lenders that you are actively seeking new credit, which can be seen as a potential risk. However, the impact typically diminishes over time.

Context of Credit Inquiries

Lenders do not make decisions based solely on the presence or absence of hard credit inquiries. They also consider your overall credit history, including:

• Payment history
• Credit utilization ratio
• Length of credit history
• Credit mix

Managing Hard Credit Inquiries

To minimize the impact of hard credit searches on your credit score, consider the following strategies:

• Space out credit applications: Don’t apply for multiple lines of credit within a short timeframe.
• Check your credit report regularly: Review your credit report to ensure that there are no unauthorized hard inquiries.
• Dispute any errors: If you notice any incorrect hard inquiries on your credit report, contact the credit bureau and dispute the information.

Conclusion

Hard credit searches are a common part of the credit application process. While they can temporarily lower your credit score, their impact diminishes over time. Lenders consider these inquiries within the context of your complete credit history. By managing hard credit inquiries responsibly, you can maintain a strong credit profile and improve your chances of obtaining credit on favorable terms.