How Credit Inquiries Really Affect Your Score (And When to Worry)

Let’s clear something up: not all credit inquiries are bad.

When you apply for a loan, credit card, or even a new apartment, the company often runs a credit check. That’s what’s called a credit inquiry. But here’s the thing—there are two types, and they don’t hit your score the same way.

Soft Inquiries: Nothing to Stress About

These happen when you check your own score, get pre-approved offers, or even when a potential employer runs a background check. They’re completely harmless and don’t affect your credit score at all. You could check your score ten times a day and your credit won’t flinch.

Hard Inquiries: Minimal Impact, But Be Smart

These show up when you apply for new credit—like a credit card, car loan, or mortgage. A single hard inquiry usually drops your score by about 5 points or less. And it only affects your score for about 12 months, even though it stays on your report for 2 years.

Now, multiple hard inquiries in a short time? That can signal risk to lenders. But there’s a catch: if you’re rate-shopping (like for a car loan or mortgage), most credit scoring models count multiple inquiries within a 14–45 day window as one inquiry. So shop smart, and you’re fine.

So When Should You Worry?

• If you’re applying for a bunch of new credit lines back-to-back

• If you don’t recognize a hard inquiry on your report (could be identity theft)

• If you’re already rebuilding your score and can’t afford a dip

Bottom Line

Hard inquiries aren’t the villain people think they are. They only have a small impact, and they’re part of the normal credit-building process. Just avoid going overboard, keep an eye on your credit report, and focus on the bigger picture—like keeping your payments on time and balances low.

Need help understanding your credit report or cleaning up inquiries you didn’t authorize? That’s where we come in.

Guard My Credit can help you review, protect, and take control of your credit the right way.