There is no exact number of hard credit inquiries that is universally considered "too many," but several factors influence how many inquiries might negatively impact your credit:
- Impact on Credit Score: Each hard inquiry can reduce your credit score by a few points, typically less than five. The effect is usually minor but can be more significant for those with a short credit history or few accounts
- Multiple Inquiries in a Short Time: Multiple hard inquiries for different types of credit (like credit cards or personal loans) within a short period may signal to lenders that you are a higher credit risk. This can lower your chances of approval and increase perceived risk
- Rate Shopping Exception: When shopping for a specific type of loan (auto, mortgage, or student loans), multiple inquiries within a 14-day window are often treated as a single inquiry by credit scoring models like FICO and VantageScore, minimizing the impact
- General Guideline: Many experts and lenders consider six or more hard inquiries within a year as potentially problematic, as studies show people with six or more inquiries are more likely to experience financial distress such as bankruptcy
- Soft Inquiries: These do not affect your credit score and do not count toward any limit on inquiries
Summary:
- There is no strict limit, but 6+ hard inquiries in a short period (about 12 months) can be seen as a red flag by lenders.
- Rate shopping within a 14-day period counts as one inquiry.
- Spread out applications for credit cards or personal loans to avoid multiple hard inquiries that might hurt your score.
- Occasional hard inquiries are normal and usually have a minor effect.
In essence, "too many" hard inquiries depends on your overall credit profile and the timing of those inquiries, but six or more in a short span is commonly viewed as risky by lenders
