What Is a Hard Pull? | Business Lending Glossary

Definition

A formal credit inquiry initiated by a lender during a loan application that temporarily lowers the applicant's credit score.

Explanation

Hard pulls (also called hard inquiries) appear on credit reports for up to two years and can lower a score by 2–10 points each. Multiple hard pulls within a short window (14–45 days, depending on the scoring model) for the same loan type are often treated as a single inquiry, allowing rate shopping without compounding score damage.

Example

A business owner submits a formal SBA loan application, triggering a hard pull on their personal credit that reduces their FICO score from 710 to 704 for a few months.

Why It Matters

Being aware of hard pulls helps you sequence applications strategically — pre-qualifying with soft pulls first lets you narrow your options before consenting to hard inquiries that impact your score.

Frequently asked questions

How long does a hard pull affect my credit?

The score impact typically fades within 3–6 months, and the inquiry itself stops affecting most scoring models after 12 months, though it remains visible on your report for two years.