The fear of hard inquiries stops many people from applying for credit they genuinely need. Understanding how inquiries actually work-and how long they matter-helps you make strategic decisions without unnecessary anxiety.
The Real Impact Number
FICO states that a single hard inquiry typically reduces a score by fewer than five points for most people. The exact impact depends on your overall credit profile: thin files with few accounts feel more impact than established profiles with 10+ years of history.
Rate Shopping Is Protected
When shopping for a mortgage, auto loan, or student loan, FICO groups multiple inquiries of the same type within a 45-day window and counts them as a single inquiry. This means you can shop aggressively for the best rate without multiplying the credit impact.
Inquiries Fall Off in Two Years
Hard inquiries remain on your report for two years but only affect your score for 12 months. After the first year, they become informational-only and have no scoring weight.
Key Takeaways
- A single hard inquiry typically reduces your score by fewer than 5 points
- Mortgage and auto loan inquiries within 45 days count as one
- Inquiries stop affecting your score after 12 months
- Thick credit profiles are barely affected by individual inquiries