A hard inquiry typically stays on your credit report for up to two years. However, its impact on your credit score usually lasts only for about 12 months. After that, while the inquiry remains visible to lenders, it no longer affects your FICO credit score
. The effect of a single hard inquiry on your credit score is generally minor, often reducing it by fewer than five points. Multiple hard inquiries within a short period can have a larger impact, as they may signal financial distress to lenders. Credit scoring models like FICO also treat multiple inquiries for the same type of loan (e.g., mortgage or auto loan) made within a 14 to 45-day window as a single inquiry to allow for rate shopping without excessive penalty
. In summary:
- Hard inquiries remain on your credit report for 2 years.
- They affect your credit score for only 12 months.
- The typical score impact is small, about 5 points or less per inquiry.
- Multiple inquiries in a short time are grouped to minimize score impact.
Maintaining good credit habits such as timely payments and low credit utilization helps offset the effect of hard inquiries over time
