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CAL2008

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If I have excellent credit, does it really matter if I have hard hits on my credit?
I don't see why my credit should be impacted if I don't get turned down. Shouldn't you be forgiven for hard hits if the approval request isn't denied? Just doesn't make sense why your score would drop when you being approved for something.

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A couple of hard hits have a rather small impact on your credit score. It is when you get quite a few, especially within a short period of time, that your score will really suffer.

The reasons for this is that, for one, the results of an inquiry aren't reported. Although is may seem obvious if a bank checks my credit, and then soon after grant me a loan, the two events are considered to be independant. Furthermore, in the eyes of a creditor, if you have many inquiries it can look like you're desperate for credit, and either being turned down, or not approved for enough.

Inquiries will stay on your report for two years, and have a diminishing effect on your score the older they get. Although not a perfect way of knowing, the Credit Simulator offered on Credit Karma can give you an idea as to how much inpact additional inquiries would have on your credit.

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Inquiries count for 10% of your FICO score, which is minimal.  Barkinglama is right, it doesn't matter if you are approved or not.  One other point I want to make is if you go shopping for credit, do all your shopping around within the same 30 day period.  FICO realizes that consumers must compare items to make an informed decision.  So, let's say you go to 3 different banks to get a mortgage and they pull your credit.  As long as all 3 credit pulls were done within the same 30 day period, it only counts as 1 inquiry.  This only works for that specific category of loan, though.  So you can't mix shopping for auto with mortgage; that would be 2 inquiries.

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