Question 1

What is a soft inquiry?

Accepted Answer

You may hear a soft inquiry referred to as a "soft credit pull" or "soft credit check," but the meanings are the same. A soft pull allows a company or individual to access an overview of your credit file for information about your credit history. A potential lender may use the information from a soft credit check to determine whether you may be a good fit for a pre-approved or pre-qualified offer. If you've ever received a credit card offer in the mail or online without applying for one, the issuer has likely conducted a soft inquiry and determined that you meet the basic qualifications. A prospective employer, property manager, or landlord may also conduct a soft credit inquiry as part of a background check. Your credit history might help a potential landlord determine whether you're financially responsible enough to pay rent reliably. It may also serve as an additional step to confirm your identity. Your existing lenders may also periodically conduct soft pulls. When you check your own credit report, that's also a soft inquiry. You may get one free credit report a week from each of the three major credit bureaus at AnnualCreditReport.com.

Question 2

Does a soft inquiry affect your credit score?

Accepted Answer

No, soft credit inquiries don't affect your credit score.

Question 3

How long does a soft pull stay on your credit report?

Accepted Answer

Soft pulls may appear on your credit report for up to two years.

Question 4

What is a hard inquiry?

Accepted Answer

Hard credit inquiries occur when a creditor reviews your credit report in response to a new credit application. A hard credit inquiry may also be called a "hard credit check" or "hard credit pull." Your credit report contains information about the type of credit you have, when you opened the credit account, your credit limits, your payment history, your current balances, and previous hard inquiries. Relevant public records, including overdue debt that has gone to collections and any bankruptcies, may also show up on your credit file. Your detailed credit history gives potential lenders an idea of your borrowing habits so they can determine your eligibility, terms, and interest rate. All applications for new credit usually trigger hard inquiries, including: Credit cards Mortgages Personal loans Student loans Auto loans If you've fallen victim to identity theft or your personal information has been compromised by a data breach, you may put a security freeze in place to restrict access to your credit report. Potential lenders can't access a frozen credit report, so be sure to unfreeze it before you apply for a new loan or credit card. If you suspect fraud on your credit card, you may want to restrict access to your account. Sometimes, a hard credit pull might also show up on your report after you open a new cell phone plan, request a credit line increase, or apply for an apartment, depending on the creditor or landlord. They may opt for a soft inquiry instead.

Question 5

How long does a hard pull stay on your credit report?

Accepted Answer

A single hard credit inquiry may stay on your report for up to two years. However, the impact of a hard credit inquiry often shrinks over that time. In fact, most credit scoring agencies no longer factor hard inquiries into your credit score calculations after a year.

Question 6

Does a hard inquiry impact your credit score?

Accepted Answer

Yes, a hard inquiry may have a small negative effect on your credit score. New credit accounts for 10% of your FICO® Score 8. Typically, a single hard credit check may drop your score by a few points. If you have a limited credit history, a hard pull may have a slightly larger impact. But as long as you stay on top of your payments and keep your credit utilization low, your score may begin to improve from a hard credit check in several months.

Question 7

How do multiple hard inquiries affect your credit score?

Accepted Answer

While a single hard credit inquiry may affect your credit score, multiple hard credit checks in a short amount of time often have a larger impact. A hard inquiry on your credit report shows lenders that you're looking for new credit. Multiple hard inquiries in a short time may point to financial instability or difficulty managing credit, which are both flags for most lenders.

Question 8

How can you minimize soft and hard pulls?

Accepted Answer

Soft credit pulls don't hurt your credit score, so you don't have to worry about minimizing them. But it's a good idea to avoid excessive hard credit checks. If you're shopping for a new private student loan, mortgage, or auto loan, try to apply for them within a short timeframe, like two weeks. Credit bureaus typically treat rate-shopping in these loan categories like a single hard inquiry as long as they occur within a small window. Credit pre-qualification may also help you avoid unnecessary hard inquiries. While pre-qualification doesn't guarantee approval, it may give you an idea of the offers you're likely to qualify for. Typically, the prequalification process includes a soft credit check, which won't damage your credit score. Finally, try to limit your applications for new credit unless you need it. Before you apply for a new credit card, for example, ask yourself if it fits a financial need or fills a gap in your rewards.

Soft Inquiry vs. Hard Inquiry

Key Takeaways

Did you know?

See if you're pre-approved

What's Length of Credit History?

How to Identify the Most Accurate Credit Score

What is a Good Credit Score?

Do Other Countries Have Credit Scores?