Credit basics
How Long Do Hard Inquiries Stay on Your Credit Report (and When They Stop Counting)?
A hard inquiry stays on your credit report for 2 years. But it doesn't hurt you for 2 years.
FICO scores only count inquiries from the last 12 months, and the hit from a single inquiry is usually small, often less than 5 points, fading within a few months (Experian). VantageScore can look back as far as 24 months.
So why do inquiries matter so much when you're going after business funding? Because banks don't only look at your score. They read the list.
Hard inquiry vs soft inquiry
| Hard inquiry | Soft inquiry | |
|---|---|---|
| What causes it | You apply for credit: a card, a loan, a mortgage | You check your own credit, a pre-approval offer, an employer check |
| Shows on your report | Yes, visible to lenders | Only you can see it |
| Affects your score | Yes, usually a few points | No |
| How long it stays | 2 years | Varies, no score effect |
Checking your own credit never hurts it. Look as often as you want.
The timeline of one hard inquiry
- Day 1: the inquiry posts to your report. Your score may drop a few points.
- First few months: the effect fades. Most people barely notice it after that.
- Month 12: FICO scores stop counting it.
- Month 24: it falls off your report completely.
When several inquiries count as one
If you're shopping for a mortgage, an auto loan or a student loan, credit scores give you a break. Several inquiries for the same kind of loan in a short window count as one. Newer FICO versions use a 45-day window (NerdWallet).
Credit cards don't get that break. Every credit card application counts on its own, business cards included.
Why inquiries matter more than the points
A few points rarely decide anything. The count does.
When a bank reviews a card application, it sees every recent inquiry on your file. Two inquiries in six months look normal. Seven look like someone applying everywhere at once, and banks tend to read that as risk. Some banks are known to turn people down for too many recent applications even when the score is strong.
That's why one of the 4 funding blocks we check before any client applies is 3 or fewer inquiries in the last 6 months. It's our own checklist, not a published bank rule, and it's there because the list of inquiries is often what decides the next "yes."
The other three blocks are a 700+ score, nothing late in the last 24 months, and at least 3 cards with one at a $10K+ limit. More on the score in What Credit Score Do You Need for a Business Credit Card?
How to keep inquiries from piling up
- Check your report before you apply. Count your hard inquiries in the last 6 and 12 months.
- Don't apply to "see what happens." Every try adds to the list the next bank reads.
- Use pre-qualification tools when the bank offers them. Most use a soft pull.
- Plan the order. Which bank you go to first matters, because every bank after it reads what came before. If you're applying for business cards, read Does Applying for a Business Credit Card Hurt Your Personal Credit?
- Wait it out when you need to. If you're over the line, time fixes it. Inquiries older than 12 months stop counting toward FICO scores.
Can you remove a hard inquiry?
Only if it shouldn't be there. If an inquiry comes from an application you didn't make, you can dispute it with the credit bureau that shows it, and the bureau has to investigate. That's your right under the Fair Credit Reporting Act (CFPB). If someone applied in your name, report it at IdentityTheft.gov too.
If you did apply, the inquiry is accurate, and it stays until it ages off. Be careful with anyone who promises to "remove" real inquiries.
Frequently asked questions
How long do hard inquiries stay on your credit report?
2 years. After that they fall off your report completely.
How long do hard inquiries affect your credit score?
FICO scores count them for 12 months, and the effect of a single inquiry is usually small and fades within a few months. VantageScore can consider inquiries from the last 24 months.
How many points does a hard inquiry take off?
Usually less than 5 points on a FICO score, according to Experian. The effect can be larger if your credit history is short.
How many hard inquiries is too many?
There's no official number, and every bank decides for itself. Before our clients apply for business funding, we want to see 3 or fewer in the last 6 months.
Do credit card inquiries count as one if I apply for several at once?
No. The rate-shopping window applies to mortgages, auto loans and student loans. Each credit card application counts as its own inquiry.
Is your file ready for 0% funding?
We check 4 funding blocks before anyone applies: score, late payments, cards and inquiries. See where you stand.
Check your 4 funding blocksGet Funding Path is a coaching and education company. We are not a lender and do not make loans or credit decisions. Results vary. This article is general education, not financial or legal advice.