If you've been knocked back for a home loan or credit card lately, there's a good chance someone mentioned "hard inquiries" as part of the problem. Maybe you've been shopping around for the best car loan rates, or perhaps you applied for a few credit cards in quick succession during a rough financial patch.

Now you're wondering: "If I get these hard inquiries removed from my credit report, how many points will my credit score actually increase?"

It's a fair question, and one that thousands of Aussies are asking right now. The short answer? It depends on your unique situation, but the impact can be more significant than you might think – especially if you understand how to approach hard inquiry removal strategically.

Let me walk you through everything you need to know about hard inquiries, their real impact on your credit score, and most importantly, what you can do about them.

What Exactly Are Hard Inquiries? (And Why Should You Care?)

Before we dive into the numbers, let's get crystal clear on what we're dealing with. A hard inquiry – also called a "hard pull" or "hard credit check" – happens when a financial institution takes a deep dive into your credit report as part of their decision-making process.

Think of it this way: when you apply for a home loan, the lender isn't just taking your word that you're financially reliable. They're doing their due diligence by checking your credit history, payment patterns, existing debts, and overall financial behaviour.

When Do Hard Inquiries Actually Occur?

Hard inquiries typically happen when you apply for:

• Home loans or mortgage refinancing (the big one that most Aussies worry about)
• Personal loans for debt consolidation, home improvements, or major purchases
• Credit cards – whether it's your first card or adding to your wallet
• Car loans when you're financing a vehicle purchase
• Business loans if you're self-employed or starting a company
• Rental applications in competitive markets where landlords run credit checks

Here's what catches many people off guard: even some utility connections and mobile phone contracts can trigger hard inquiries, especially if you have limited credit history.

The key point: Every single one of these inquiries leaves a footprint on your credit report that lenders can see.

Hard vs. Soft Inquiries: The Difference That Matters to Your Credit Score

This is where things get interesting, and where many Aussies get confused. Not all credit checks are created equal, and understanding the difference could save you from unnecessary damage to your credit score.

Soft Inquiries: The Harmless Ones

Soft inquiries happen when:

• You check your own credit report (always a smart move)
• Employers conduct background checks as part of the hiring process
• Insurance companies assess your risk level for policy pricing
• Credit card companies pre-approve you for offers (those letters you get in the mail)
• Existing creditors review your account for limit increases or promotions

The brilliant thing about soft inquiries? They have zero impact on your credit score. None. Zip. You can check your own credit report every day of the year without affecting your score.

Hard Inquiries: The Ones That Count

Hard inquiries, on the other hand, can ding your credit score because they signal to other lenders that you're actively seeking credit. From their perspective, someone desperately applying for multiple forms of credit might be a higher risk.

Here's the reality check: A single hard inquiry typically reduces your FICO score by 2-5 points. That might not sound like much, but if you're borderline for loan approval, those few points could be the difference between "approved" and "sorry, we can't help you."

But here's where it gets really problematic: multiple hard inquiries in a short timeframe can compound the damage.

The Real Impact: How Hard Inquiries Actually Affect Your Credit Score

Let's talk numbers, because this is where most people underestimate the true cost of hard inquiries.

The Immediate Hit

When a hard inquiry hits your credit report, you can expect:

• 2-5 point decrease for most people with established credit histories
• Potentially larger impact if you have a "thin" credit file (limited credit history)
• Cumulative effects if you have multiple inquiries within a short period

But Here's What Really Matters: Your Overall Credit Profile

The impact of hard inquiries isn't just about the immediate point drop. It's about how they fit into your overall credit story.

If you have excellent credit (750+ score): A single hard inquiry might barely register. You've got enough positive credit history to absorb the impact.

If you have fair credit (580-669 score): Those 5 points could push you into a lower credit tier, potentially costing you thousands in higher interest rates.

If you have poor credit (below 580): Every point matters when you're trying to rebuild, and hard inquiries can significantly slow your progress.

The Timeline: How Long Do Hard Inquiries Stick Around?

Here's the frustrating part: hard inquiries stay on your Australian credit report for two years. But there's a silver lining – their impact on your credit score typically diminishes after the first 12 months.

Month 1-12: Full impact on your credit score Month 13-24: Reduced impact, but still visible to lenders After 24 months: Completely removed from your credit report

The bottom line: If you're planning to apply for a major loan like a mortgage in the next two years, those hard inquiries will be part of your credit profile that lenders evaluate.

When Hard Inquiries Become a Serious Problem

Most Aussies can handle a few hard inquiries without major drama. But there are situations where hard inquiries can seriously damage your financial opportunities:

The "Rate Shopping" Trap

Picture this scenario: You're looking for the best home loan rates, so you apply with multiple lenders over several weeks to compare offers. Sounds smart, right?

Here's the catch: If these applications are spread out over months rather than concentrated into a short "rate shopping window," each one counts as a separate hard inquiry. You could end up with 5-10 hard inquiries on your credit report, which looks like financial desperation to future lenders.

The smart approach: Complete all your rate shopping within 14-45 days (depending on the credit scoring model). Multiple related inquiries within this window typically count as just one inquiry.

The Credit Card Application Spree

Maybe you were knocked back for one credit card, so you immediately applied for another. Then another. Before you know it, you've got multiple hard inquiries and still no credit card to show for it.

This is particularly damaging because:

• Each rejection often leads to another application
• Multiple credit card inquiries in short succession signal financial stress
• You're damaging your score without gaining any credit to help rebuild it

The "Shotgun Approach" to Lending

Some people think that applying for multiple types of credit simultaneously increases their chances of approval somewhere. In reality, it often guarantees rejection everywhere, because lenders see someone who's desperately seeking credit from multiple sources.

Don't let hard inquiries derail your financial goals. Understanding how they work is the first step toward managing them strategically.

How Many Points Will Your Score Actually Increase When Hard Inquiries Are Removed?

Now for the question you've been waiting for: if you successfully remove hard inquiries from your credit report, how much will your score improve?

The honest answer depends on several factors:

Factor 1: Your Current Credit Profile

Strong credit history (720+ score): Removing hard inquiries might boost your score by 5-15 points. The impact is moderate because you already have substantial positive credit history.

Average credit history (620-720 score): You could see a 10-25 point improvement, particularly if the inquiries were recent or numerous.

Poor credit history (below 620): The impact could be more dramatic – potentially 15-40 points – because every element of your credit profile carries more weight when you have limited positive history.

Factor 2: The Age and Number of Inquiries

Recent inquiries (0-12 months old): Removing these provides maximum benefit because they're currently impacting your score.

Older inquiries (12-24 months old): Still beneficial to remove, but the score impact will be smaller since their influence was already diminishing.

Multiple inquiries: If you have several hard inquiries, removing them can have a compounding positive effect on your score.

Factor 3: The Type of Inquiries

Legitimate inquiries you authorized: These are harder to dispute, but not impossible if there were procedural errors.

Unauthorized inquiries: These can often be successfully disputed and removed, providing the full benefit of score improvement.

Duplicate inquiries: Sometimes the same application generates multiple inquiries due to processing errors – these are excellent candidates for removal.

Real-World Example: Sarah's Story

Sarah had been knocked back for a home loan because her credit score was sitting at 640 – just below the threshold for the best interest rates. Looking at her credit report, we discovered:

• 6 hard inquiries from rate shopping over 8 months (should have been done within 45 days)
• 2 unauthorized inquiries from identity theft
• 1 duplicate inquiry from a processing error

After successfully removing 5 of these inquiries, Sarah's credit score increased by 32 points to 672 – enough to qualify for significantly better loan terms and save her approximately $28,000 in interest over the life of her mortgage.

The key insight: The value isn't just in the point increase – it's in crossing thresholds that unlock better financial products.

Legitimate Ways to Remove Hard Inquiries from Your Credit Report

Before you get too excited, let's be clear: you can't just dispute every hard inquiry because you don't like them. But there are legitimate circumstances where hard inquiries can and should be removed:

Unauthorized Inquiries

If there are credit checks on your report that you didn't authorize, these are clear candidates for dispute. This includes:

• Identity theft situations
• Inquiries from companies you never applied with
• Inquiries that occurred after you explicitly declined to authorize a credit check

Procedural Errors

Sometimes legitimate applications result in improper hard inquiries due to:

• Processing errors that create duplicate inquiries
• Inquiries that should have been soft pulls (like pre-approvals)
• Inquiries from companies that don't have proper authorization procedures

Fraudulent Activity

If someone used your personal information to apply for credit without your knowledge, those inquiries need to be removed immediately.

The dispute process requires documentation and patience, but it's absolutely worth pursuing for legitimate cases.

Advanced Strategies for Managing Hard Inquiries

Now that you understand the basics, let's talk about some advanced strategies that most Aussies don't know about:

Strategy 1: The "Rate Shopping Window" Technique

When you're genuinely shopping for the best rates on a major purchase like a home or car, concentrate all your applications within a 14-45 day period. Credit scoring models recognize this as legitimate rate shopping and typically count multiple related inquiries as just one.

Strategy 2: The "Pre-Qualification" Approach

Before submitting formal applications, use pre-qualification tools that only require soft inquiries. This allows you to:

• Compare offers without damaging your credit
• Only submit hard applications where you're likely to be approved
• Reduce the total number of hard inquiries on your report

Strategy 3: The "Timing Strategy"

If you know you'll need to apply for credit in the future, time your applications strategically:

• Avoid applying for credit 6-12 months before a major purchase like a home
• If you must apply, do it all at once rather than spreading inquiries over time
• Consider waiting for older inquiries to age off before applying for new credit

Strategy 4: Professional Credit Repair Assistance

For complex situations involving multiple unauthorized inquiries or procedural errors, professional credit repair services can be invaluable. They understand the dispute process and have experience dealing with credit bureaus and lenders.

When considering professional help, look for services that:

• Offer free consultations to assess your situation
• Work on a "no results, no fee" basis
• Have experience specifically with Australian credit reporting laws
• Provide clear explanations of what they can and cannot do

The Hidden Costs of Hard Inquiries (Beyond Credit Scores)

While we've focused on credit score impacts, hard inquiries can affect your financial life in other ways:

Interest Rate Penalties

Even if you get approved for credit, multiple hard inquiries can push you into higher interest rate tiers. On a $500,000 mortgage, even a 0.25% interest rate penalty could cost you over $20,000 over the life of the loan.

Reduced Credit Limits

Lenders might approve your application but offer lower credit limits if they see multiple recent inquiries on your report.

Additional Scrutiny

Multiple inquiries often trigger additional underwriting requirements, potentially slowing down your application process or requiring more documentation.

The message is clear: managing hard inquiries isn't just about credit scores – it's about maintaining access to the best financial products at the most competitive terms.

Red Flags: When Hard Inquiry Removal Companies Are Scamming You

Unfortunately, the credit repair industry has its share of dodgy operators, particularly when it comes to hard inquiry removal. Watch out for companies that:

Promise Unrealistic Results

• "We can remove all hard inquiries, guaranteed!"
• "Your score will increase by 100 points in 30 days!"
• "We have special relationships with credit bureaus!"

Demand Large Upfront Payments

Legitimate credit repair companies typically work on a pay-for-results basis. Be wary of anyone demanding hundreds or thousands of dollars upfront.

Suggest Illegal Activities

Anyone suggesting you should dispute accurate information or misrepresent facts is not legitimate.

Can't Explain Their Process

Professional credit repair companies should be transparent about what they're doing and why.

The reality: Legitimate hard inquiry removal requires proper documentation, valid legal grounds, and patience. Anyone promising instant or guaranteed results is likely running a scam.

Taking Action: Your Next Steps for Hard Inquiry Management

If you're dealing with hard inquiries that are affecting your credit score, here's your action plan:

Step 1: Get Your Credit Reports

Obtain copies of your credit report from all three major Australian credit bureaus – Equifax, Experian, and Illion. You're entitled to one free report per year from each bureau.

Step 2: Identify Problematic Inquiries

Look for:

• Inquiries you don't recognize or didn't authorize
• Duplicate inquiries from the same application
• Inquiries that seem excessive or inappropriate

Step 3: Gather Documentation

For any inquiries you plan to dispute, collect:

• Records of your applications (or lack thereof)
• Correspondence with lenders
• Identity theft reports if applicable
• Any evidence of procedural errors

Step 4: File Formal Disputes

Contact the credit reporting agencies to dispute inaccurate inquiries. Be specific about what's wrong and provide supporting evidence.

Step 5: Follow Up Persistently

Credit bureaus have 30 days to investigate disputes. Follow up regularly and keep detailed records of all communications.

Step 6: Consider Professional Help

For complex cases or if you're not comfortable handling disputes yourself, professional credit repair services can be worth the investment.

Don't wait to address hard inquiry issues. The sooner you take action, the sooner you can start seeing improvements in your credit score and access to better financial products.

The Long-Term Strategy: Building Credit Resilience

While removing problematic hard inquiries is important, the bigger picture is building a credit profile that can handle occasional inquiries without significant damage:

Establish Strong Payment History

On-time payments are the most important factor in your credit score. Even if you have some hard inquiries, consistent payment history will eventually outweigh their impact.

Maintain Low Credit Utilisation

Keep your credit card balances low relative to your limits. This shows lenders you're not overly reliant on credit.

Diversify Your Credit Mix

Having a mix of different credit types (credit cards, installment loans, mortgage) can strengthen your credit profile over time.

Be Strategic About New Credit

When you do need to apply for credit, be strategic about timing and approach to minimise hard inquiry impact.

Remember: hard inquiries are just one piece of your credit puzzle. A comprehensive approach to credit health will serve you much better in the long run than just focusing on inquiry removal.

The Bottom Line: Hard Inquiries Don't Have to Derail Your Financial Goals

Here's what you need to remember about hard inquiries and credit score improvement:

The potential score increase from removing hard inquiries ranges from 5-40+ points, depending on your specific situation. More importantly, crossing key credit score thresholds can unlock significantly better interest rates and loan terms.

Not all hard inquiries can be removed, but unauthorized inquiries, procedural errors, and fraudulent applications are legitimate targets for dispute.

Professional help can be valuable for complex cases, but make sure you're working with reputable services that operate transparently and ethically.

The real value isn't just in the points – it's in maintaining access to the best financial products when you need them most.

If you're currently dealing with hard inquiry issues, don't let them continue to cost you money and opportunities. Whether you tackle the problem yourself or seek professional assistance, taking action now could save you thousands of dollars in higher interest rates and improved your financial flexibility for years to come.

Ready to see what hard inquiries might be costing you? The first step is always getting your credit reports and taking an honest look at what's actually affecting your score. Once you know what you're dealing with, you can make informed decisions about the best path forward for your unique situation.

Your credit score isn't set in stone, and neither is the impact of hard inquiries. With the right approach and persistence, you can minimise their impact and get back on track toward your financial goals.