How Long Do Credit Card Applications Stay On Credit Report?

If you’ve applied for a credit card, you might be wondering how long does the resulting hard inquiry from your credit card application stays on your credit report. We will answer this question in much detail below.

How Long Do Credit Card Applications Stay On Credit Report?

Credit card applications stay on your credit report for 24 months from the date that you submitted your credit application. After the 24 month period is over, the resulting hard inquiry will automatically be removed from your credit report. A hard inquiry from a credit card application will stop affecting your credit score within 12 months of submitting your application.

A hard inquiry is placed on your credit report whenever you submit a credit card application regardless of whether your application is approved or denied. A hard inquiry can lower your credit score by a few points, but so long as you make payments on all your accounts and avoid having anything negative added to your credit report, your credit score will quickly recover from a credit card application.

You should keep in mind that every credit card application you submit will result in a hard inquiry being added to your credit report. So, avoid submitting too many credit card applications within a short period of time. This is so because even though a single credit card application will lower your credit score by a few points, submitting too many within a short period of time can significantly lower it. Also, lenders don’t like seeing too many hard inquiries on your credit report because it shows them that you’re actively seeking too much credit.

How Many Points Can a Single Credit Card Application Lower Your Credit Score?

A single credit card application can lower your credit score by a few points. That said, the stronger your credit profile, the less of an impact there will be on your credit score. That said, it’s common for a single credit application to lower your credit score by 3 to 5 points. That said, hard inquiries only make up 10% of your credit score, so they do not play a major role. Having said that, ideally, you should have no more than 2 to 3 hard inquiries on your credit report. If you have more than 3 hard inquiries, lenders may be hesitant to lend you money because it shows them that you’re actively seeking credit, which is something that they do not like to see. So, keep your credit card applications to a minimum, and only apply for credit cards that you have a reasonable chance of being approved for.

If you know that you’ll be applying for a mortgage in the foreseeable future, you should keep credit card applications and other credit applications to a minimum in order to have the highest credit score possible and for your credit report to look as clean as possible.

Things to Consider Before Submitting a Credit Card Application

You should consider the following factors before submitting a credit card application:

1. you should keep in mind that whether your application is approved or denied, a hard inquiry will be added to your credit report, so make sure that you’re only applying for a credit card that you’re reasonably certain you’ll be approved for. There are many helpful sites on Google that will tell you the credit score requirements for the credit card you want to apply for, so review the requirements and compare them to where your credit score stands.

2. The better your credit score, the less of an impact submitting a credit card application will have on your credit score. If you have a low credit score and have too many hard inquiries, you could see a bigger drop in your credit score when submitting a credit card application.

3. Even though your credit score may drop a few points as a result of a credit card application, if you continue to make all of your payments on time, your credit score will quickly recover.

4. Review your credit report before applying. If your credit score is lower than what’s required for the credit card you want, consider applying for a different card that caters to consumers with your credit score.

How Many Credit Card Applications Should You Submit?

As a rule of thumb, you should keep the hard inquiries that result from submitting credit card applications below three hard inquiries. Also, you should space out your credit card applications, leaving at least 90 days between submitting applications. If you submit an application and are denied, you should wait before submitting another application. Applying for a bunch of credit cards within a short period of time is a big no no and should be avoided. If you submit too many applications, lenders will view you as actively seeking too much credit, making them weary about whether to approve you. Additionally, you should space out applications so that the hard inquiries resulting from credit applications do not lower your credit score too much.

How Long Does a Credit Card Application Stay On Your Credit File?

As mentioned previously, a credit card application will stay on your credit file (credit report) for 2 years from the date you submitted your application and the lender reviewing your credit report. After the 2 year period, the resulting hard inquiry will automatically be removed from your credit report.

How To Improve Your Credit Score After Submitting a Credit Card Application?

If you want to improve your credit score after submitting a credit card application, you should make sure to make all of your credit card and loan payments on time. Missing a single payment could cause significant damage to your credit score. Additionally, you should lower the balances on your credit cards and loans. Your credit utilization accounts for 30% of your credit score, so paying down your cards and loans will improve your credit score. Furthermore, keeping old accounts open even though you barely use them is a good idea as your overall account age impacts your credit score. Moreover, you should limit the number of credit applications that you submit to keep hard inquiries at a minimum. Although a single hard inquiry can lower your credit score by a few points, having too many of them on your credit report within a short period of time can significantly lower your credit score. If you have any questions or comments, please feel free to leave them in the comments section below.