Credit inquiries come in two main types: hard pulls and soft pulls, each impacting your credit profile differently.
Imagine your credit report as your home. A soft pull is like someone casually glancing from the street; they gather limited information without disturbing you. In contrast, a hard pull is like inviting a lender inside for a thorough inspection because you’re seeking new credit.
What Is a Hard Credit Pull (Hard Inquiry)?
A hard credit pull occurs when a lender or creditor requests your credit report to make a lending decision—usually when you apply for a mortgage, auto loan, new credit card, personal loan, or sometimes when requesting a credit limit increase. This inquiry requires your explicit permission. Because it signals new debt potential, a hard pull can cause a small, temporary dip in your credit score, generally a few points. This impact fades within months, though the inquiry remains on your report for up to two years.
What Is a Soft Credit Pull (Soft Inquiry)?
Soft pulls happen without the same impact on your credit score. They occur when you check your own credit, when companies pre-approve you for offers, or when employers and landlords perform background checks with your consent. Soft inquiries are not visible to other lenders and don’t affect your credit score.
Key Differences at a Glance
| Feature | Hard Credit Pull | Soft Credit Pull |
|---|---|---|
| Impact on Credit Score | Yes, small temporary drop | No impact |
| Requires Your Permission | Yes | Often implicit in terms |
| Visible to Other Lenders | Yes | No |
| Common Uses | Loan, credit card applications | Checking score, pre-approval, background checks |
| Duration on Report | Up to 24 months | Up to 24 months (visible only to you) |
Rate Shopping Protection
Credit models like FICO and VantageScore recognize consumers shop around for the best rates. Multiple hard pulls for the same loan type within a 14-45 day window are usually counted as a single inquiry, minimizing score impact—helpful when comparing mortgages or auto loans.
Managing Your Credit Inquiries
- Regularly obtain your free annual credit reports from Equifax, Experian, and TransUnion to monitor inquiries.
- Dispute unauthorized hard inquiries with credit bureaus if you spot suspicious activity.
- Space out credit applications when possible to avoid multiple hard pulls.
- Always ask lenders if a credit check will be hard or soft before applying.
Hard credit pulls are a normal part of credit use but managing their timing helps protect your score.
Learn more about credit inquiries and credit scores and loan prequalification to better understand how credit checks fit into your financial planning.
Sources
- Consumer Financial Protection Bureau, “What is a hard inquiry?” https://www.consumerfinance.gov/ask-cfpb/what-is-a-hard-inquiry-en-314/
- Experian, “What Are Inquiries On Your Credit Report?” https://www.experian.com/blogs/ask-experian/credit-education/inquiries/
- FICO, “How Does Rate Shopping Affect Your Credit Score?” https://www.myfico.com/credit-education/credit-reports/inquiries
- AnnualCreditReport.com, “Free Credit Reports” https://www.annualcreditreport.com/index.action
