Hard Inquiry

Hard Inquiry

A hard inquiry, also known as a hard pull, occurs when a Financial Institution checks your Credit Report to make a lending decision. This typically happens when you apply for a loan, mortgage, or Credit card. Hard inquiries can impact your Credit Score and may remain on your credit report for up to two years.

Examples:

  • Applying for a mortgage to purchase a home.
  • Requesting a credit card from a bank or credit union.
  • Securing an auto loan to finance a vehicle purchase.

Cases:

1. When Jane applied for a new credit card, the issuer conducted a hard inquiry, which slightly decreased her credit score for a short period.

2. Tom’s application for a car loan resulted in a hard inquiry, which his lender used to assess his creditworthiness.