Applying for some type of loan or credit has a minor and short-lived effect on your credit score – about five points each, diminishing to zero points by six months, and disappearing from the credit report altogether after two years.

In addition, multiple inquiries within a 14-day period for a mortgage or auto financing only count as one inquiry, allowing you to shop for the best loan. Only “hard inquiries” like these affect your credit score. “Soft inquiries” (applying for insurance or employment, or purchasing your own credit report) have no effect on your credit score.