Hard vs Soft Credit Inquiries: What's the Difference?
When someone checks your credit, it's called an inquiry. But not all inquiries are the same. Understanding the difference between hard and soft inquiries can help you protect your credit score.
Hard Inquiries
Hard inquiries (or "hard pulls") occur when you apply for credit and the lender checks your credit report.
Examples:
- Credit card applications
- Mortgage applications
- Auto loan applications
- Personal loan applications
- Apartment applications (sometimes)
Impact:
- Can lower your score by 5-10 points
- Stays on your report for 2 years
- Affects your score for about 12 months
- Multiple inquiries can compound the effect
Soft Inquiries
Soft inquiries (or "soft pulls") don't affect your credit score at all.
Examples:
- Checking your own credit
- Pre-approval offers
- Employer background checks
- Insurance quotes
- Account reviews by current creditors
Impact:
- No effect on your credit score
- May or may not appear on your report
- Only you can see them
The Rate Shopping Exception
When shopping for a mortgage, auto loan, or student loan, multiple inquiries within a short period (14-45 days depending on the scoring model) count as a single inquiry. This allows you to rate shop without being penalized.
How to Minimize Hard Inquiry Impact
- Only apply when needed - Don't apply for credit you don't need
- Rate shop quickly - Do comparison shopping within 2 weeks
- Check pre-qualification first - Many lenders offer soft-pull pre-approval
- Space out applications - Wait 3-6 months between applications
How Long Do Inquiries Matter?
- Hard inquiries affect your score for about 12 months
- They remain visible on your report for 2 years
- The impact diminishes over time
- Multiple inquiries are more damaging than one
Can You Remove Hard Inquiries?
If a hard inquiry was unauthorized, you can dispute it. Otherwise, legitimate inquiries cannot be removed early. Focus on building positive credit habits rather than worrying about inquiries.
One or two hard inquiries have minimal impact. The bigger factors in your score are payment history and credit utilization.