Switchboard Finance Logo – Hard Enquiry Glossary

Hard Enquiry

A Hard Enquiry is a formal credit check made by a lender when you apply for finance such as Vehicle Finance, Equipment Finance, credit cards, or Business Loans. Hard enquiries can temporarily lower your credit score and are used by lenders to assess borrowing behaviour. Related terms: Credit Enquiry, Credit File, Credit Score. Relevant blogs: Bad Credit vs Low Doc, Rebuilder Credit Roadmap, What Lenders Look For.

Why Hard Enquiries Matter

Hard enquiries help lenders determine whether you are applying for credit responsibly or frequently seeking new loans. Too many recent enquiries can reduce approval chances for Low Doc Finance, Truck Finance, Tradie Loans, or Café Business Loans.

What Hard Enquiries Show

  • The date the credit check was performed.
  • The lender or provider who accessed your file.
  • The specific type of credit you applied for.
  • Patterns that indicate potential financial stress.
  • Risk signals used for Business Lines of Credit and Working Capital Loans.

Official info: asic.gov.au

Does a hard enquiry lower my score?
Yes — it can reduce your score for a short period depending on your credit profile.
How long do hard enquiries stay on my credit file?
Hard enquiries usually stay on your file for 5 years.
Do all loan applications create hard enquiries?
Most lender assessments do — though some checks may be classified as soft enquiries.
Can too many enquiries cause a decline?
Yes — multiple enquiries in a short time can signal financial stress and reduce approval odds.
Can incorrect hard enquiries be removed?
Yes — you can dispute and remove incorrect entries through the credit reporting agency.