Quick answer

Hard credit checks (hard inquiries) happen when a lender pulls your credit to make a lending decision. They can cause a small, typically temporary drop in score; soft checks (soft inquiries) — like prequalification offers or checking your own report — do not affect your score (CFPB). For mortgages and autos, most modern FICO models treat multiple rate‑shopping inquiries within a short window as one inquiry; personal‑loan shopping is less likely to be bundled, so shop selectively (FICO).

How inquiries affect mortgages vs. personal loans

  • Mortgages: Multiple hard pulls made while rate‑shopping are usually grouped by modern scoring models (commonly a 45‑day window for FICO 8/9), so you can compare multiple lenders without a separate score hit for each pull (FICO). Lenders still see the inquiries, and underwriters look at recent activity, so avoid new credit right before closing.
  • Personal loans: Many personal‑loan inquiries aren’t treated as a single shopping event by all score models. Repeated hard pulls for competing personal loans can register separately and produce a greater cumulative effect on your score.

Practical strategies (what I recommend in practice)

  1. Ask whether the lender will use a soft or hard pull before you apply. Many banks and online lenders offer soft‑pull prequalifications that show estimated rates without impacting your score.
  2. Bundle rate shopping into a tight window. If you’re shopping a mortgage or auto loan, complete applications within the model’s shopping window (commonly 14–45 days depending on the scoring version) to limit score impact (FICO).
  3. Limit personal‑loan applications. If you need multiple personal‑loan quotes, try to prequalify with a soft pull first or narrow to 2–3 lenders you trust.
  4. Monitor your credit report. Review reports from the three bureaus for unauthorized hard inquiries and dispute errors promptly (CFPB).
  5. Time other credit actions. Don’t open new cards or take other loans while in the final stages of mortgage underwriting — even small changes can trigger re‑underwriting or rate changes.

Timeline and measurable impact

  • Visibility: Hard inquiries remain on your credit report for two years but their score impact generally fades after about a year (CFPB).
  • Score movement: For most consumers a single hard inquiry commonly lowers a score by a small amount (often fewer than five points), though the effect varies by individual credit history and scoring model (FICO).

Example scenarios

  • Mortgage shopping: A borrower applies with five lenders over three weeks. Under modern FICO rules, those pulls are usually treated as a single inquiry for scoring, so the net score hit is small; however, underwriters will still see multiple applications and may ask questions.
  • Personal‑loan shopping: A borrower applies separately to four personal‑loan providers over two months. Because personal‑loan pulls may not be grouped, each hard pull could register separately and cause a larger cumulative drop.

What to ask lenders (quick script)

  • “Will this prequalification use a soft pull or a hard pull?”
  • “If I proceed, how will you report the inquiry to the credit bureaus?”
  • “Do you accept a recent credit report from another lender for underwriting?”

When to dispute an inquiry

If you see a hard inquiry you did not authorize, file a dispute with the credit bureau that lists it and contact the company that made the pull. Unauthorized hard pulls can be removed if the creditor cannot verify you authorized the inquiry (CFPB).

Checklist before applying

  • Prequalify with soft pulls where available.
  • Limit hard‑pull applications and cluster them when rate‑shopping mortgages/autos.
  • Avoid other credit applications or large financial changes during underwriting.
  • Check your credit reports for errors and unauthorized pulls.

Related resources on FinHelp

Frequently asked (brief)

  • Do hard inquiries permanently damage my credit? No — they remain visible for two years but their effect on score usually disappears after about a year (CFPB).
  • Does checking my own score hurt? No — that’s a soft inquiry and does not affect your score.

Professional disclaimer

This article is educational and not personalized financial advice. For recommendations tailored to your situation, consult a qualified financial advisor or loan officer.

Authoritative sources

(Updated: 2025)