When you apply for a credit product in Canada, the lender pulls your credit report to make a lending decision. This is known as a hard credit inquiry or hard pull. It leaves a record on your credit report that other lenders can see. Understanding how long these inquiries stay on your report, and how they affect your credit score, is important for any Canadian planning to apply for new credit.
How Long Do Credit Inquiries Stay on Your Credit Report in Canada?
Hard inquiries from credit applications stay on your Canadian credit report for 3 years at both Equifax Canada and TransUnion Canada. After 3 years, the inquiry is automatically removed. During the 3-year period, any lender who pulls your credit can see which other institutions have recently checked your file.
Hard Inquiries vs Soft Inquiries
Canada distinguishes between two types of credit inquiries. Hard inquiries occur when you apply for new credit and the lender pulls your full credit report. These affect your credit score and are visible to other lenders. Soft inquiries occur when you check your own credit, when a lender pre-screens you for an offer, or when an employer does a background check. Soft inquiries do not affect your credit score and are not visible to lenders reviewing your file.
How Much Do Hard Inquiries Affect Your Score?
A single hard inquiry typically reduces your Canadian credit score by 5 to 10 points. This is a temporary effect. However, multiple hard inquiries in a short period can have a compounding impact and may signal to lenders that you are actively seeking new credit, which some lenders interpret as financial stress.
Rate Shopping and Grouped Inquiries
When shopping for a mortgage, auto loan, or student loan, you may apply with multiple lenders to compare rates. Canadian credit scoring models are designed to accommodate this. Multiple inquiries for the same type of credit made within a concentrated window (typically 14 to 45 days) are often grouped and treated as a single inquiry for scoring purposes.
This means you can compare mortgage rates from multiple lenders without each application reducing your score individually. Apply for the same type of product within the same short period to take advantage of this grouping.
Unauthorized Inquiries
If you see a hard inquiry on your credit report from a company you never applied to, this could indicate identity theft or an error. You have the right under PIPEDA to dispute unauthorized inquiries with Equifax Canada and TransUnion Canada. Provide any supporting documentation you have that you did not authorize the inquiry.
How to Check Your Inquiries
Both Equifax Canada and TransUnion Canada provide free credit reports that include a section showing all recent inquiries. You can request your free report at equifax.ca and transunion.ca. Reviewing your inquiries helps you spot unauthorized activity and understand what lenders see when they review your file.
FAQ
**How long do credit inquiries stay on a Canadian credit report?** Three years at both Equifax Canada and TransUnion Canada.
**Do inquiries from checking my own credit show up on my report?** No. Checking your own credit is a soft inquiry and is not visible to lenders.
**Can I dispute a hard inquiry I did not authorize?** Yes. Contact Equifax Canada and TransUnion Canada directly to dispute unauthorized inquiries. Include documentation proving you did not apply to that lender.
For a free consultation about your credit report, call (437) 755-6579.