Quick overview

Lenders, landlords, employers, and you can trigger checks of your credit file. Those checks fall into two buckets: soft inquiries and hard inquiries. Soft inquiries are informational and do not affect your credit score. Hard inquiries happen when a lender evaluates you for new credit and can shave a few points off your score for a period of time. The distinction matters when you’re applying for credit, comparing loan offers, or monitoring your file for fraud.

(Author note: In my work advising over 500 clients, I regularly see avoidable score changes caused by clustered credit-card and personal-loan applications — most of which could have been minimized by timing applications and rate-shopping within model windows.)

Sources: CFPB — “What is a credit inquiry?” (consumerfinance.gov), MyFICO — “Understanding credit inquiries” (myfico.com).

Background: why credit inquiries exist

Credit reports are compiled by consumer reporting agencies (Equifax, Experian, TransUnion) to give lenders a snapshot of someone’s credit history. Inquiries are logged whenever an organization requests your report. The purpose is simple: lenders want to know whether you’ve recently sought more credit (which can signal increased risk) or whether a soft background check or identity verification suffices.

Scoring models and credit-reporting practices evolved to distinguish informational checks from credit-seeking behavior. That’s why the industry labels checks as soft or hard — and why their treatment in scoring algorithms differs.

How soft inquiries work (and common examples)

Soft inquiries occur when:

  • You check your own credit score or full credit report.
  • A company performs a background or pre-employment check.
  • A card issuer pre-approves you for a marketing offer.
  • A lender does a preliminary prequalification that does not require full underwriting.

Soft inquiries are visible only to you on your report and are not used in credit scoring (Consumer Financial Protection Bureau, CFPB). Checking your own report regularly is safe and encouraged to spot errors or fraud.

If you’re unsure what type of check a company will run, ask if the check will be a “soft pull” or a “hard pull” before you consent.

How hard inquiries work (and common examples)

A hard inquiry occurs when you apply for new credit and the lender requests your full credit report to make a lending decision. Typical situations include:

  • Credit card applications that require underwriting
  • Auto loan applications
  • Mortgage and home equity loan applications
  • Some apartment rental or utilities credit checks where deposit decisions or leasing terms are affected

Hard inquiries are visible to potential future lenders and can influence your credit score because they are treated as a sign you may be taking on more debt.

How much a hard inquiry affects your score varies. For most people it’s a small drop — often a few points — but for someone with a thin or new credit file, the impact can be larger. The exact effect depends on the scoring model and the details of your credit profile (myFICO). Hard inquiries remain on your credit report for up to two years, though their weight in scoring typically diminishes after about 12 months (CFPB).

Rate-shopping rules: how multiple inquiries are treated

If you’re comparison-shopping for a mortgage, auto loan, or student loan, multiple lenders may pull your credit. Scoring models recognize rate-shopping and often treat multiple similar inquiries as a single inquiry when they occur within a short window. Typical rules:

  • Most FICO models count multiple auto, mortgage, or student loan inquiries as one if they happen within a 14–45 day window (many older FICO versions use a 45-day window; see MyFICO for specifics).
  • VantageScore historically uses a shorter 14-day shopping window, though model updates can change how inquiries are grouped.

Because scoring rules differ by model and version, target keeping your rate-shopping for one product type inside a two-week to six-week window to reduce scoring impact. Ask lenders whether they use “soft prequalifications” before doing a hard pull.

(Cited: MyFICO and VantageScore guidance.)

Typical point impact and duration

  • Typical impact: a hard inquiry often lowers a credit score by a few points (commonly 5–10 points), but the change varies by individual credit profile. Someone with a long, stable credit history will likely see little movement; someone with a thin file could see more significant changes.
  • Report duration: hard inquiries remain on credit reports for up to two years, but most scoring models reduce their influence after about 12 months (CFPB, myFICO).

Remember: a few points can matter when you’re on the edge of a lending tier. That’s why timing and strategy matter when applying for credit.

Real-world examples (anonymized)

  • Client A applied for three personal loans at different lenders over a month and saw a roughly 8–12 point drop. Because the loans were different product types and the pulls were spread beyond a typical shopping window, the inquiries did not group and each affected the score.

  • Client B rate-shopped auto loans with five lenders over a two-week period. Their hard inquiries were treated as a single shopping instance by the scoring model, and the score change was minimal.

These examples show how product type and timing change outcomes.

Practical, professional tips

  1. Ask before you apply: Confirm whether a pre-qualification is a soft pull or a hard pull. If it’s only to see rates, insist on a soft pull.
  2. Time rate shopping: Limit mortgage, auto, or student loan rate-shopping to a compact window — aim for 14–45 days depending on the lender and model. This often lets multiple inquiries be counted as one.
  3. Apply selectively for credit cards: Don’t apply for multiple cards at once unless you truly need them. Each application may cause a hard inquiry and new accounts can shorten average account age.
  4. Monitor your reports monthly: Use services or visit annualcreditreport.com for your free annual reports (you can stagger requests throughout the year) and follow our step-by-step guide on how to read your report to spot unexpected pulls (FinHelp: How to Read Your Credit Report: A Step-by-Step Walkthrough — https://finhelp.io/glossary/how-to-read-your-credit-report-a-step-by-step-walkthrough/).
  5. If you find unauthorized hard inquiries, dispute them: A hard inquiry you didn’t authorize may indicate identity theft or a reporting error; follow dispute steps (FinHelp: How to Dispute Errors on Your Credit Report — https://finhelp.io/glossary/how-to-dispute-errors-on-your-credit-report-2/).
  6. Improve approval odds before applying: Work on utilization, on-time payments, and removing errors before applying for big loans — see our guide for targeted steps to boost your score before a loan application (FinHelp: How to Improve Your Credit Score Before Applying for a Loan — https://finhelp.io/glossary/how-to-improve-your-credit-score-before-applying-for-a-loan/).

Common mistakes and misconceptions

  • Mistake: Treating all inquiries the same. Reality: Only hard inquiries affect your score.
  • Mistake: Assuming a small point drop is permanent. Reality: most scoring impact fades within 12 months; inquiries remain visible for two years but carry less weight over time.
  • Mistake: Rate-shopping for too long. Shopping across many months can create multiple hard pulls that don’t get grouped.

Quick action plan if your score drops after several applications

  1. Pause new applications for 6–12 months while you repair the file.
  2. Check for identity theft and unauthorized accounts; dispute false inquiries.
  3. Reduce credit utilization by paying balances down.
  4. Keep making on-time payments — payment history is the single biggest factor in most scoring models.

Frequently asked questions

Q: Will checking my own credit hurt my score?
A: No. Checking your own credit via a consumer site or ordering your report is a soft inquiry and will not affect your score (CFPB).

Q: How long does a hard inquiry affect my credit score?
A: Hard inquiries remain on your credit report for up to two years, but most scoring models give them most weight during the first 12 months (CFPB, MyFICO).

Q: Can multiple credit card applications be treated as one inquiry?
A: No. Scoring models generally only group similar-purpose inquiries (mortgage, auto, student loans). Multiple credit-card applications are usually treated separately.

Where to learn more (authoritative sources)

Professional disclaimer

This article is educational and not personalized financial advice. Your credit profile is unique; if you’re planning a mortgage, large loan, or have a complex credit history, consult a certified financial planner, a credit counselor, or a trusted lender before applying.