Does your credit score go up after inquiries fall off? The answer to this question depends on a few factors, including the time it takes for the inquiry to fall off. While it may be concerning to see your credit score take a small dip after applying for a new credit line, understanding why this change happens can help you take steps to repair your score.

In this article, we explain what happens when hard inquiries fall off and share positive credit building habits and solutions that can help you bounce back after your score dips.

What Is a Hard Inquiry?

A hard inquiry, also called a hard pull, is an inquiry that appears on your credit report after a lender requests information about your credit history. Say you apply for a new credit card, home loan, auto loan, personal loan, or any other line of credit. The potential lender will pull your credit report to get a glimpse into your credit history and determine if you qualify for their loan.

It is part of the application for any major type of loan and can stay on your credit report for up to two years for other lenders and creditors to see. A potential landlord can also check your credit as part of the application process when you want to rent a new apartment. 

FICO^®, the credit-scoring model used by most lenders, defines a hard inquiry as any instance in which you permit someone to check your credit report.

The Difference Between a Hard Inquiry and a Soft Inquiry

Aside from a hard inquiry, another type of credit inquiry you should be aware of is a soft inquiry. A soft inquiry happens when a lender checks your credit report with or without your approval, or when you check it yourself. 

The main difference between a soft and a hard inquiry is the impact they have on the credit report. This table clearly explains the differences between both types of inquiries:

In summary, soft inquiries are harmless, don’t appear on your credit report, and don’t affect your score.

Can You Remove Hard Inquiries From Your Credit Report?

You may be able to remove a hard inquiry from your report in two cases:

1. If the inquiry is reported in error
2. If it’s as a result of identity theft or fraud

If a hard inquiry is reported on your account for a credit application you didn’t submit, it could be an error or a telltale sign of attempted fraud. Once you get notified of this, immediately file a dispute to ensure the inquiry is removed. If the report is a result of fraud, it’s important to review your accounts for other signs of fraud and dispute them immediately. 

You may be unable to remove hard inquiries from your credit report if they stem from a credit application you made. The inquiries are recorded on your credit history and cannot fall off until their validity elapses.

Does Removing Hard Inquiries Increase Credit Score?

Removing a credit inquiry from your report only affects your score if it has been there for less than a year. 

Remember that only an erroneous or fraud-related inquiry can be removed from your report. If you dispute a fraud-related inquiry, and it’s removed from your account, you will likely gain a few points. Your score will not be impacted if one year passes before you remove the inquiry. 

Again, your score will not be affected when a credit application inquiry falls off naturally after the two-year mark. 

How Does a Hard Inquiry Affect Credit?

A hard inquiry is considered a sign of uncertainty, making a lender perceive that you may be financially unstable or an unreliable borrower. However, this shouldn’t alarm you. 

FICO’s scoring model reveals that a hard inquiry makes up only 10% of your FICO Score. This means that if you get one on your report, it will have little impact on your score. One hard inquiry on your report may cause your score to drop by about five points or fewer if you have a good credit history. 

You can regain the points in a few months if you maintain positive credit habits. One year after the inquiry appears on your report, it will no longer affect your credit score. 

While a solitary hard inquiry may not cause a significant dip in your score, accruing multiple hard inquiries from applying for different types of credit within a short period may cause a weightier drop. It may also flag you as a risk to lenders and harm your chances of securing a loan. 

In some cases, multiple hard inquiries in a row may be overlooked. For instance, if you’re shopping around and comparing rates for a mortgage or car loan, you will accrue many hard inquiries from lenders you interact with. If you keep your rate shopping within a 14–45-day period, most credit-scoring models like FICO will treat all the inquiries as a single hard inquiry, keeping the reduction to a minimum.

How To Reduce the Effects of Hard Inquiries on Your Credit

Hard inquiries are a normal part of a credit application process, and although they can temporarily hurt your credit score, you shouldn’t worry too much about them—unless you already have a low credit score. In that case, here are a few ways to minimize the impact on your credit:

• Apply strategically—Time your applications and try to keep them within a 14-day timeframe when rate shopping. Doing this will ensure the scoring models categorize all the hard inquiries on your report as one inquiry
• Reduce your credit applications—Only apply for credit when you genuinely need it and use a selective application method to narrow down your preferred creditor. Look for lenders that offer prequalification tools to determine your eligibility without triggering a hard inquiry 
• Practice good credit habits—Frequently reviewing your credit reports can help you stay current on loan payments and keep your credit card balances minimal. It also helps you spot unauthorized inquiries on your report so you can dispute and clean them up before one year elapses

A credible and transparent credit building solution like CreditStrong can help you improve your credit over time. It provides a free monthly FICO Score with details of your credit report to keep you updated. CreditStrong also offers different accounts with specific features that can help you build your credit score and savings at the same time.

Maintain a Healthy Credit Score With CreditStrong

CreditStrong, a division of Austin Capital Bank, is an FDIC-insured credit building platform that helps you make positive changes to your credit score. It doesn’t require a hard credit pull to open an account, and you can build from any stage, whether beginning or building back from damage.

CreditStrong allows you to build credit and save at the same time because you’re building your payment history by saving instead of spending. It achieves this easily by combining a secured installment loan or a revolving line of credit with a savings account in your name.

Types of CreditStrong Accounts and Ways They Help Improve Credit

To build credit with CreditStrong, choose any of its three main account types:

1. Instal/CS Max—Instal is ideal for beginners as it builds credit through secured installment loans locked safely in a savings account. It promptly reports on-time payments to the credit bureaus, helping to improve your credit score by up to 45 points. CS Max focuses on building larger credit lines for 60 months and is fitting if you seek significant credit growth for the long term
2. MAGNUM—This account builds substantial credit ($2,000–$30,000) and improves your score by up to 86 points if you make 12 on-time payments. It’s ideal for unlocking higher credit limits, accessing bigger loans, and building credit for business purposes. It’s not a good fit if you’re concerned about debt-to-income ratio
3. Revolv—The Revolv account provides a secured revolving line of credit with 0% utilization. This helps to improve credit by decreasing utilization and growing savings while building credit. It’s perfect for users with high credit card balances, and it provides a 62-point FICO Score 8 increase 

The table below highlights each account’s key credit building features:

How To Create a Credit Strong Account

Unlike credit repair services that make unrealistic promises and charge upfront payments for DIY services, CreditStrong empowers you to build a positive payment history that improves your credit score at a low cost. To create a CreditStrong account, take the following steps:

1. Click here to get started 
2. Select any of the three products that best fit your credit building goal:
   • MAGNUM—Starting at $30 a month
   • Revolv—$99 a year
   • Instal—Starting at $28 a month
3. Fill out the online application form with your details to set up your CreditStrong account
4. Monitor your progress, savings, and payments via the credit dashboard

CreditStrong helps improve your credit and can positively impact the factors that determine 90% of your FICO score.

Start Building credit today