How Many Hard Credit Inquiries are Too Many? | Chase (2024)

FAQs

How Many Hard Credit Inquiries are Too Many? | Chase? ›

Since hard inquiries affect your credit score and what is found may even affect approval, you might be wondering: How many inquiries is too many? The answer differs from lender to lender, but most consider six total inquiries on a report at one time to be too many to gain approval for an additional credit card or loan.

In general, six or more hard inquiries are often seen as too many. Based on the data, this number corresponds to being eight times more likely than average to declare bankruptcy. This heightened credit risk can damage a person's credit options and lower one's credit score.

Hard inquiries usually impact credit scores. Multiple hard inquiries within a certain time period for a home or auto loan are generally counted as one inquiry.

Ultimately, it's up to the lender to decide how many inquiries is too many. Each lender typically has a limit of how many inquiries are acceptable. After that, they will not approve you, no matter what your credit score is. For many lenders, six inquiries are too many to be approved for a loan or bank card.

A hard credit inquiry could lower your credit score by as much as 10 points, though in many cases, the damage probably won't be that significant. As FICO explains, “For most people, one additional credit inquiry will take less than five points off their FICO Scores.”

Disputing hard inquiries on your credit report involves working with the credit reporting agencies and possibly the creditor that made the inquiry. Hard inquiries can't be removed, however, unless they're the result of identity theft. Otherwise, they'll have to fall off naturally, which happens after two years.

Lenders typically perform a hard inquiry on your credit if you're applying for a mortgage, auto loan, credit card or student loan. Space out your credit applications — about every six months — to avoid major damage to your score.

Your credit score does not go up when a hard inquiry drops off your credit report. Your score will not go down when a hard inquiry drops off, either. Instead, a hard inquiry (or hard credit pull) stops having an impact on your credit score after one year, which is one year before it drops off your credit report.

Is 7 credit inquiries bad? ›

Hard pulls can affect your credit score and may also hurt your eligibility for new credit cards and/or loans — especially if the number of inquiries reaches six.

Hard inquiries stay on your credit report for two years, but your FICO^® Scores will only be impacted by hard inquiries posted in the last 12 months, according to Experian. You can request a free credit report from each of the three credit bureaus once a year.

But most hard searches will drop off your report after a year. However, if you see a hard search on your report that you don't recognise, it could be a sign of fraud or identity theft. If you do become a victim of fraud, the lender should correct any damage to your report and score quickly.

However, multiple hard inquiries can deplete your score by as much as 10 points each time they happen. People with six or more recent hard inquiries are eight times as likely to file for bankruptcy than those with none. That's way more inquiries than most of us need to find a good deal on a car loan or credit card.

The most likely reasons are: your balances increased, you recently closed accounts, you applied for new lines of credit, or there is inaccurate or fraudulent information on your account. If your credit score dropped by 40 points, this is likely due to late payments that continue to compound on past-due bills.

Good news: Credit scores aren't impacted by checking your own credit reports or credit scores. In fact, regularly checking your credit reports and credit scores is an important way to ensure your personal and account information is correct, and may help detect signs of potential identity theft.

Hard inquiries fall off of your credit reports after two years. But your credit scores may only be affected for a year, according to credit-scoring company FICO®. “Although FICO Scores only consider inquiries from the last 12 months, inquiries remain on your credit report for two years,” the company says.

There isn't a set number of credit cards you should have, but having less than five credit accounts total can make it more difficult for scoring models to issue you a score and make you less attractive to lenders.

If you spot a hard inquiry on your credit report, don't sweat it too much. It's there because your credit was pulled by an issuer or lender when you applied for a credit card or loan. And if your credit score does get dinged from it, it's OK. It can bounce back in a few months if you use your card responsibly.

It's generally best to wait six months between credit card applications. That will prevent hard inquiries from making a significant negative impact on your credit score.