A "hard inquiry" occurs when a lender or financial institution checks your credit report to assess your creditworthiness. This typically happens when you apply for a loan, credit card, or mortgage. Hard inquiries can impact your credit score, usually causing a small, temporary drop. Unlike "soft inquiries," which do not affect your credit score, hard inquiries are recorded on your credit report for up to two years. It's important to limit the number of hard inquiries, as too many in a short period can signal financial distress to potential lenders, making it harder to obtain credit in the future.