How do credit inquiries impact my credit score?

Credit inquiries can have a significant impact on a consumer's credit score. There are two primary types of inquiries: hard inquiries and soft inquiries. Hard inquiries occur when a lender reviews a consumer's credit report as part of their application for credit. This type of inquiry can slightly lower the credit score, typically by a few points, but it usually rebounds after a short period, as long as the consumer does not accumulate multiple hard inquiries in a short time frame. On the other hand, soft inquiries do not impact the credit score. These might occur when a consumer checks their own credit report, or when a lender pre-approves them for a credit offer without a formal application. It is important to note that multiple hard inquiries within a short duration, especially when applying for a mortgage, auto loan, or other forms of credit, may be treated as a single inquiry by scoring models, minimizing the negative impact. In general, it is wise for consumers to monitor their credit inquiries and maintain a good credit history by being strategic about how often they apply for new credit. For specific information regarding your individual credit report, checking the website may provide additional resources.