A hard inquiry (also called a hard pull) happens when a lender — a bank, credit card issuer, or car dealership — requests your full credit report to make a lending decision. Hard inquiries can temporarily lower your credit score. Here’s exactly how they work in Canada.
Hard Inquiry vs Soft Inquiry
| Type | Example | Affects Score? |
|---|---|---|
| Hard inquiry | Applying for a credit card, mortgage, or auto loan | Yes — temporarily |
| Soft inquiry | Checking your own score; employer background check; pre-approval offer | No |
You can check your own credit score as often as you like at Equifax or TransUnion (free) without any impact on your score.
How Much Does a Hard Inquiry Lower Your Score?
A single hard inquiry typically lowers your credit score by 5–10 points in Canada. This is a rough estimate — the actual impact depends on:
- Your overall credit profile (more established credit = less impact)
- How many recent inquiries you already have
- Your total number of accounts and credit history length
For someone with a long, excellent credit history, one new inquiry may cause almost no measurable change. For someone newer to credit, the same inquiry could drop their score by 10 points or more.
How Long Do Hard Inquiries Stay on Your Credit Report?
Hard inquiries remain on your credit report for 3 years at Equifax Canada and 6 years at TransUnion Canada. However, their impact on your credit score is typically only significant for the first 12 months — after that, inquiries have little to no scoring impact even while still appearing on the report.
Multiple Inquiries: Rate Shopping
If you’re shopping for a mortgage, car loan, or student loan and apply with multiple lenders in a short period, Equifax and TransUnion may group those inquiries as a single event — reducing the score impact. This “rate shopping” allowance applies to mortgage, auto, and student loan applications. The window is typically 14–45 days, depending on the scoring model.
This rate-shopping grouping does not apply to credit card applications. Each credit card application is counted as a separate hard inquiry, regardless of how close together they occur.
How Many Hard Inquiries Is Too Many?
There’s no fixed threshold, but:
- 1–2 inquiries in 12 months: Normal — minimal scoring impact
- 3–5 inquiries in 12 months: Noticeable — lenders may see you as credit-seeking
- 6+ inquiries in 12 months: May signal credit stress — can affect approval decisions at some lenders
Lenders don’t just look at your score — they look at the pattern of applications. Multiple recent inquiries can raise flags even if your score is still strong.
How to Minimise Hard Inquiry Impact
- Apply for credit only when you need it — Avoid “just seeing if you qualify” applications
- Check for pre-qualification tools — Many issuers (TD, Amex, etc.) offer soft-pull pre-qualification that doesn’t affect your score
- Space out applications — If applying for multiple cards, wait 3–6 months between applications where possible
- Shop mortgages and auto loans within a short window — Cluster applications within 14–30 days to benefit from rate-shopping grouping
Do Hard Inquiries Affect Mortgage Approval?
Yes — mortgage lenders in Canada review your credit report directly and will see all hard inquiries. Multiple recent credit card applications shortly before a mortgage application can raise concerns. If you plan to apply for a mortgage in the next 12 months, hold off on new credit card applications.
Checking Your Own Credit Report
You have a legal right to a free credit report from both Equifax Canada and TransUnion Canada:
- Equifax Canada: equifax.ca — free online access
- TransUnion Canada: transunion.ca — free online access
Checking your own report is always a soft inquiry and never affects your score.
Related Articles
- How Credit Scores Work in Canada
- What Credit Score Do You Need for a Credit Card in Canada?
- How to Improve Your Credit Score in Canada
- How to Apply for a Credit Card in Canada
- Credit Scores — Canada Hub
Credit scoring models vary by bureau and lender. Point impacts are estimates based on typical FICO model behaviour. See our Advertiser Disclosure.