When Does a Hard Credit Inquiry Occur?
Updated: Mar 4, 2021
We've been talking a lot about credit inquiries lately. If you have been working on building your credit score, you'll likely know what a hard credit inquiry is. Whenever you apply for a loan, or other type of credit, the creditor will check you credit, and the application will be listed on your credit file as a hard inquiry.
It is important to know what events will trigger a hard inquiry, as they will make your credit rating drop a few points temporarily. So when does a hard inquiry occur? Here is our comprehensive guide.
When Will a Hard Inquiry Appear On My Credit File
Here is a list of things that will appear as a hard credit check on your credit file. Each of these will cause your credit score to drop temporarily, so it is best to space them out. If you are shopping around for loans, don't make multiple applications at once. It will make you look "credit hungry" and will greatly affect your creditworthiness.
Applying for a mortgage
When you apply for a car loan
Getting a mobile phone on a payment plan
Opening a post-pay mobile phone or internet account
When you apply for a credit card
Applying for a personal loan
Entering into a hire purchase agreement
Opening a utilities account, such as electricity or gas
Applying for a credit limit increase on an existing account
These are known as hard inquiries. You can read more about hard enquiries here.
When Will an Inquiry Not Appear on My Report
When you check your own credit rating
When you seek a pre-approval for a loan
When a potential employer checks your credit score
When one of your current creditors checks your credit score
Getting quotes for insurance
Opening an Afterpay or other Buy Now Pay Later account
These are called soft inquiries. You can read more about soft inquiries here.
Although credit inquiries only make up about 10% of your credit score, it is still important to be careful when making them. Taking care of your credit score is taking care of your future!