Inquiry
Inquiry refers to a record created when a lender, creditor, or other authorized party checks your credit report, typically as part of a credit application or review process. This is evaluated within New Credit & Inquiries.
Plain-Language Meaning
An inquiry is simply a note on your credit report showing that someone has looked at your credit information, usually because you applied for credit or a service that requires a credit check.
Practical Example
If you apply for a new credit card, the card issuer will check your credit report, resulting in an inquiry that appears on your credit file and may be visible to other lenders.
What It Does Not Mean
An inquiry does not mean you have been approved or denied for credit, nor does it indicate any changes to your account balances or payment history.
How the System Uses It
The system evaluates inquiries as part of the credit scoring process, considering the number and timing of recent inquiries to assess how actively you are seeking new credit, which can signal potential risk to lenders.
Common Misconceptions
- “All inquiries hurt your credit score.” Only certain types of inquiries, known as hard inquiries, may impact your score; others, like soft inquiries, do not.
- “An inquiry means you opened a new account.” An inquiry only shows that your credit was checked, not that you were approved or accepted new credit.
- “Inquiries stay on your credit report forever.” Inquiries typically remain on your credit report for up to two years, with most scoring models only considering those from the past 12 months.
Related Pages
Related Glossary Terms
FAQ
- Do all inquiries affect my credit score? No, only hard inquiries—those made when you apply for new credit—can affect your score; soft inquiries, such as those from checking your own credit, do not.
- How long do inquiries stay on my credit report? Inquiries generally remain on your credit report for up to two years, but their impact on your credit score usually lessens after one year.