A credit check that occurs when you apply for new credit. It is one of the five factors your credits score making up 10% of the value. Applying for new credit can temporarily lower your credit score by a few points. Hard inquiries stay on your credit report for two years but typically only affect your score for the first 12 months. A few hard inquiries won't hurt you much, but applying for multiple credit accounts in a short period can signal desperation to lenders. Be strategic about when and how often you apply for new credit.