Category: General Knowledge | Last updated: 2026-09-18

What is the typical effect on your credit score when a lender performs a 'hard inquiry' after you apply for new credit?

A) It usually has no effect on your credit score.
B) It causes a significant, long-term increase in your credit score.
C) It may cause a small, temporary decrease in your credit score.
D) It permanently removes all negative items from your credit report.

Explanation

A hard inquiry occurs when a lender checks your credit report after you apply for new credit (like a loan or credit card). It typically results in a small, temporary dip in your credit score, as it suggests you are seeking more credit.

Practice More General Knowledge Questions

Browse all questions