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Why Credit Inquires Stay on Your Report for 2 Years

25 Oct 2024 · 1 min

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A short YouTube video (creator: Daniel Rosen) explaining why hard credit inquiries remain on credit reports for two years. The speaker says banks keep inquiries for two years so they can observe credit-seeking behavior and assess creditworthiness (e.g., frequency of applications, whether an applicant applies to many lenders in a short time). The speaker emphasizes that understanding the “why” matters for their community and links credit-savvy behavior to better lending outcomes.

Chapters

So just for anybody who doesn't know how long do hard inquiries stay on your profile and why hard inquiries stay on your credit profile for two years. And the reason why is so that the banks can assess your creditworthiness and your credit seeking behaviors. So they have two years to be able to track how much money you're asking for. What type of behaviors are you having? Are you having the behaviors of somebody that isn't so much creditworthy? Do you go apply for 15 banks within 6 months timeframe? So it's really there for them to make an assessed judgment on your credit. They want to know are you worthy or not and they're checking to see if you're savvy because the banks do like savvy people. They love credit savvy people. The more credit savvy you are, the more money they're willing to lend to you. So the why is the big piece. Because I felt like my community where I come from don't necessarily know the why. And the why is important to me.