Exact Answer: 2 years
There are things that every person requires to get through their day, and the most important thing of them all is money. Money is required to buy anything in the world. There are many ways to earn money, while some earn well so that they can save after spending for their expenses, while some just earn enough to get through the day. When one has money to save, in the olden days, they used to keep the money in their houses. Yet nowadays, there are banks and storage lockers where valuables and money can be stored safely.
Banks offer so much more than safety lockers for money. They provide loans of all sorts to help people out at their times of need, money can be credited, debited, and transferred when one wants to easily without any trouble. Even internet banking is available nowadays, a hassle-free method to pay taxes and bills. These methods are trustable and one of the most advantageous things about banks is that they also offer credit cards when a person and their bank accounts meet certain criteria.
Credit cards can be used anywhere cards are accepted instead of hard cash, and one of the perks of using credit cards is that the money can be used even when there isn’t enough money to pay.
How Long Do Hard Inquiries Stay On Your Credit Report?
| Stages | Time |
| Hard inquiries last for | 2 years |
| Grace period offered by FICO before certain loan inquiries | 30 days |
| Affects the credit card score | 1 year |
The bank will provide the money through credit cards when used, and after a certain duration, the money to pay the credit card debts will be taken from the balance in the bank account.
When it comes to credit cards, there are many things a person should keep in mind, like credit card scores, how regular one should pay the bills, and they should also know well about hard and soft inquiries if they ever want to apply for credit or any other sort of finance. When someone applies for financing or any sort of credit, the lender will check the credit scores of the person, which is a part of the process.
This step is called a hard credit inquiry or hard inquiry or hard pull. Here, in this step, they review the credit reports of a person from their credit cards. Using this information, they will know how the person has handled and paid up their credit bills in the past, and if they have paid the bills on time. They will also check for derogatory marks in the credit reports while they are at it. Along with that, they will also find how much credit the person has been juggling and how well they manage the credit.
Why Do Hard Inquiries Stay On Your Credit Report That Long?
This will help the lenders decide if they should offer new credit to the person, or offer them additional credit. Hence, it is better if one prepares for a hard inquiry anyway even if they are not expecting one so that nothing interferes with the process of getting the credits.
When one checks their credit reports themselves to find anything that must be taken care of, it is called a soft credit inquiry, or soft inquiry or soft pull. Technically, hard credit checks are known as the checks done by any financial institution, credit card issuer, or lender checks one’s credit reports before deciding whether to lend them anything financial, like a loan, credit card, or even a mortgage.
Conclusion
When someone checks one’s credit report, the credit scores might be lowered by some points. One hard inquiry will not play a big role in reducing the credit scores, and if one passes all the hard credit checks, they will be approved a loan or a new card. When time passes, the effects made by the hard inquiry will drop off on their own.
The damage will decrease and eventually disappear after the inquiry is dropped, and yet, normally, a hard inquiry will stay on the credit reports for at least two years, before it disappears. It is necessary to wait for a while when ordering credit cards. It is better to request financial assistance with a time gap between the previous one and the next.
References
- https://papers.ssrn.com/sol3/papers.cfm?abstract_id=927487
- https://www.crowdfundinsider.com/wp-content/uploads/2018/08/WINNERS-AND-LOSERS-OF-MARKETPLACE-LENDING-EVIDENCE-FROM-BORROWER-CREDIT-DYNAMICS-Chava-paradkar.pdf
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