A hard inquiry usually happens when you apply for new credit and a lender reviews your credit report to decide whether to approve you. It can affect your credit score and is visible to other businesses that later review your report.
A soft inquiry is a credit review that does not affect your score. Checking your own report, receiving a prescreened offer, undergoing certain employment screening, or having an existing lender review your account can create a soft inquiry.
The practical difference comes down to intent. When you are actively asking to borrow more money, expect that the check may be hard. When the report is being reviewed without a full new-credit application, the check is often soft.
Still, do not guess. A prequalification, apartment application, credit limit request, or service account can be handled differently by different companies. Ask whether the company will perform a hard or soft inquiry before you authorize the check.
Key takeaways
- A hard inquiry is generally connected with an application for new credit.
- A hard inquiry can affect your score, although the effect is usually small.
- A soft inquiry does not affect your credit score.
- Checking your own reports and scores is a soft inquiry.
- Prescreened offers and reviews by existing creditors are generally soft inquiries.
- Hard inquiries can remain on a report for up to two years, but FICO Scores consider them for only 12 months.
- Mortgage, auto loan, and student loan inquiries made during a focused shopping period may be grouped as one inquiry for scoring.
- Credit card applications do not receive the same rate-shopping treatment.
- An inquiry you do not recognize can be an identity theft warning and should be investigated.
What is a credit inquiry?
A credit inquiry is a record showing that someone requested access to your credit report.
The request may be connected with credit, housing, employment, insurance, account management, or another permissible purpose. The Consumer Financial Protection Bureau divides inquiries into two broad categories: hard inquiries and soft inquiries.
The words “hard pull” and “soft pull” mean the same thing as hard inquiry and soft inquiry.
The inquiry itself is not a debt, missed payment, or new account. It is a record of the credit check.
For example, you might apply for a credit card on Monday. The card company checks your Experian report, creating a hard inquiry. If the application is approved, the new credit card may later appear as a separate account on your report.
The inquiry and the account are two different pieces of information.
Why lenders look at inquiries
Credit scoring models and lenders may consider how recently and frequently you have applied for credit. Several new applications can suggest that you may soon take on more debt than your current report shows.
That does not mean every applicant with several inquiries is in financial trouble. You may be shopping for a car, comparing mortgages, or opening a card for a useful rewards program.
The scoring model cannot hear your explanation.
It sees recent requests for credit and evaluates them along with the rest of your file.
What is a hard inquiry?
A hard inquiry generally occurs when you submit an application asking a lender to extend new credit. The lender reviews your report to decide whether to approve the application, how much to lend, and what terms to offer.
Common examples include applying for:
- A credit card
- A mortgage
- An auto loan
- A personal loan
- A student loan
- A home equity loan or line of credit
- Retail financing
- A refinance of an existing loan
The CFPB says lenders usually conduct hard inquiries for new credit applications. A lender may also check credit when evaluating a mortgage preapproval, a credit limit increase, a refinance, or a loan shortly before closing.
A hard inquiry can affect your score
Hard inquiries may affect credit scores because they show that you are seeking additional credit.
The word “may” matters.
Not every inquiry produces a visible score drop. The result depends on your credit history, the scoring model, the number of recent inquiries, and other information changing at the same time.
FICO says one additional inquiry costs most people fewer than five points. The effect can be larger for someone with only a few accounts or a short credit history.
A five-point change is usually not a financial emergency.
But it can matter when your score is sitting just above a lender’s pricing cutoff. Dropping from 701 to 697 could affect an offer if the lender places applicants with scores of 700 or higher into a better rate category.
The inquiry did not suddenly make you irresponsible.
It may have moved you across an important line in that lender’s system.
A hard inquiry is visible to other lenders
Hard inquiries appear in the version of your credit report that other authorized businesses may review. A future lender can therefore see that you recently applied elsewhere.
The lender may not know whether the application was approved, denied, or abandoned merely from the inquiry.
If a new account was opened, it may appear later as a separate tradeline. If you were denied, the hard inquiry can remain even though you never received the loan or card.
What is a soft inquiry?
A soft inquiry is a credit review that does not affect your credit score.
Common examples include:
- Checking your own credit report
- Checking a score through a bank or credit-monitoring service
- An existing lender reviewing your account
- A company screening you for a presapproved offer
- Certain employment background checks
- Some insurance-related credit reviews
- Some prequalification checks
The CFPB says soft inquiries do not affect credit scores. It also says soft inquiries are generally visible only to you when you review your own report, rather than to businesses purchasing the report.
Checking your own credit is safe
You can check your credit without lowering your score.
This includes requesting your reports directly through an authorized consumer-report service or using a legitimate credit-monitoring tool. FICO confirms that reviewing your own credit is a soft inquiry and does not harm your FICO Scores.
This myth causes real problems because people avoid reviewing their reports out of fear.
Meanwhile, an incorrect late payment, unfamiliar account, or fraudulent inquiry can sit there unnoticed.
Looking at your own report is not an application for money.
Check it.
Existing creditors may review your credit
A bank or card issuer may periodically review your credit profile while managing an existing account. It might use the information to monitor risk, determine eligibility for an offer, or make account-management decisions.
The CFPB describes an existing lender’s account review as a soft inquiry that does not affect your score.
You may see the company listed several times in the soft-inquiry section of your report.
That does not mean the lender has been quietly submitting new credit applications in your name.
Prescreened offers generally use soft inquiries
Credit card and insurance companies may review limited credit information to identify consumers who meet criteria for prescreened offers.
This does not normally hurt your score. Applying for the offer is different. Once you complete the application, the company may perform a hard inquiry and evaluate updated information before approving you.
“You are preselected” means the company thinks you may fit its initial requirements.
It does not mean the account is already approved and waiting in an envelope.
Hard inquiries vs soft inquiries at a glance
Hard inquiry
- Usually happens after you apply for new credit
- Can affect your credit score
- Can be seen by other lenders reviewing your report
- May remain on your report for up to two years
- May be grouped with similar loan inquiries during rate shopping
Soft inquiry
- Usually happens without a full new-credit application
- Does not affect your credit score
- Is generally visible only in the consumer version of your report
- Can occur when you check your own report
- Can occur when an existing creditor reviews your account
The confusing part is that the same general situation can be handled differently by different companies.
A lender’s “check your rate” tool may use a soft inquiry. Another lender’s preapproval process may require a hard inquiry.
Read the authorization.
Common situations that usually create hard inquiries
Applying for a credit card
A completed credit card application normally results in a hard inquiry. The issuer wants to review your payment history, balances, recent applications, and other information before deciding whether to open the account.
A hard inquiry may appear even when the application is denied.
The inquiry records the review, not the result.
Applying for a personal loan
A lender may let you check estimated personal loan terms using a soft inquiry. The full application usually involves a hard inquiry before final approval.
Do not assume every “check your rate” button is harmless. Read the disclosure immediately above the button rather than relying on the advertisement at the top of the page.
Applying for an auto loan
A bank, credit union, online lender, or dealership may check your credit when you apply for vehicle financing.
A dealership may send the application to several lenders. That can place several separate inquiry records on your reports, although qualifying auto loan inquiries made within a focused rate-shopping window are generally treated as one inquiry for scoring purposes.
Several lines can appear on the report.
The score may still count them together.
Applying for a mortgage
Mortgage lenders generally review your credit during preapproval or application. They may check it again before closing to confirm that your financial position has not materially changed.
This is why opening a furniture card, financing a vehicle, or running up card balances during a mortgage process can create trouble.
The lender may see both the new inquiry and any resulting account or balance.
Requesting a credit limit increase
A card issuer may conduct a hard inquiry when you request a larger limit, particularly when it needs a fresh credit review. It may also use an existing-account review that is soft.
The process varies.
Ask this exact question before requesting the increase:
“Will this request result in a hard inquiry on any of my credit reports?”
The CFPB lists credit limit increase requests among the situations in which a lender may obtain a credit report.
Refinancing a loan
Refinancing replaces or restructures debt through a new credit decision. The lender normally reviews your current creditworthiness, which can create a hard inquiry.
Do not avoid comparing refinance offers because of the inquiries. A lower rate or shorter term may save far more than a small temporary score effect.
Do the math first.
Common situations that usually create soft inquiries
Reviewing your own reports
Requesting and reading your own reports does not affect your scores. The CFPB specifically confirms that checking your own credit report is harmless to your score.
Review all three reports periodically because Equifax, Experian, and TransUnion may not contain identical information.
Using a credit-monitoring service
A bank, credit card issuer, or monitoring service may provide regular score updates or report summaries through soft inquiries.
Checking three different apps in the same afternoon will not produce three score penalties.
It may produce three different numbers, because the services can use different bureaus, scoring models, and update dates.
Receiving prescreened offers
A card issuer may use a soft inquiry to decide whether to send you a prescreened offer. The soft inquiry does not affect your score.
Completing the application usually triggers a full review that can be hard.
Employment screening
An employer may obtain credit-related background information where legally permitted and with the required authorization. Employment screening is generally treated as a soft inquiry and does not affect your credit score.
The employer is not lending you money.
It is reviewing information for an employment decision.
Reviews by current lenders
An existing lender can periodically review your credit while managing an open account. These reviews are generally soft inquiries.
A soft account review can still lead to a real business decision. A card issuer might change a credit limit or make a promotional offer based on its review and other account information.
Soft does not mean meaningless.
It means the inquiry itself does not affect the score.
Situations that can be hard or soft
Some credit checks cannot be classified by the label on the form alone.
Prequalification
Many lenders use soft inquiries for prequalification. This allows you to see estimated eligibility or possible terms without a score impact.
But “prequalified” is a marketing and process term, not a universal promise that the check will be soft. FICO says prequalification tools often use soft inquiries, which means you should still verify the lender’s procedure.
Look for wording such as:
- “Checking your rate will not affect your credit score.”
- “This request uses a soft credit inquiry.”
- “Submitting a full application may result in a hard inquiry.”
Take a screenshot before submitting the form.
Preapproval
Preapproval can mean different things depending on the product and lender.
A mortgage preapproval commonly involves a credit check because the lender is estimating how much it may be willing to lend. Credit card prescreening may begin with a soft inquiry, followed by a hard inquiry if you apply.
The CFPB warns that lenders use the terms prequalification and preapproval differently. Some mortgage lenders check credit before issuing a preapproval letter.
Ask what will happen before providing your Social Security number.
Rental applications
A landlord or tenant screening company may review credit information during a rental application. The inquiry can be hard or soft depending on how the screening is structured and which report is requested.
Some landlords perform hard checks, while others use soft tenant-screening reviews. FICO recommends asking the landlord when you are unsure.
This matters when you plan to apply for several apartments.
A $50 application fee is annoying. Five hard inquiries would be another reason to ask questions before applying everywhere.
Utility and mobile phone accounts
A utility or phone provider may review your credit when deciding whether to require a deposit, approve device financing, or open service.
The inquiry may be hard or soft depending on the company and transaction. Device financing is more likely to involve a credit application than simply opening ordinary service with a deposit.
Ask before agreeing to the check.
Buy now, pay later
Buy now, pay later providers use different approval processes. The CFPB says most BNPL loans do not require a hard inquiry, but each purchase may still involve a creditworthiness evaluation.
Do not assume every provider works the same way.
Also check whether the account and missed payments may be reported. A soft initial review does not make the debt harmless.
How much can a hard inquiry lower your score?
There is no guaranteed point amount.
FICO says one additional hard inquiry costs most people fewer than five points. It can have a larger impact when the person has a short credit history or only a few accounts.
Another score model may respond differently.
You may also see no visible score change because:
- The inquiry had little or no effect on your particular file.
- Other positive information changed at the same time.
- The score you checked uses a different bureau.
- The score updated before the inquiry reached the report.
- Rate-shopping treatment grouped it with similar inquiries.
Inquiries are only part of the new-credit category
New credit represents 10% of a typical FICO Score, but hard inquiries are only one part of that category. Newly opened accounts, the age of recent accounts, and other new-credit information can also matter.
This is an important correction to a common myth.
A hard inquiry does not automatically control 10% of your entire score.
The new account may matter more than the inquiry
Suppose you apply for a credit card, receive approval, and use most of the limit immediately.
Your credit profile may change because of:
- The hard inquiry
- A newly opened account
- A lower average account age
- A high reported card balance
- A change in total available credit
If your score falls, blaming the inquiry alone may miss the larger issue.
The $2,800 balance on a $3,000 limit could matter more.
How long do hard inquiries stay on your credit report?
Hard inquiries typically remain on a credit report for up to two years. FICO Scores consider hard inquiries from only the previous 12 months.
This creates three useful time periods:
- At first, the inquiry may affect a score.
- After 12 months, it should no longer be considered by FICO Scores.
- It can remain visible on the report until roughly the two-year point.
The score effect generally fades with time rather than suddenly becoming worse.
You do not need to pay a company to remove an accurate inquiry. Let it age naturally.
How rate shopping protects your score
Shopping around for a mortgage, auto loan, or student loan can place several lender inquiries on your reports.
Credit scoring models recognize that a consumer comparing five auto lenders is usually looking for one car loan, not five cars.
For this reason, qualifying inquiries for the same type of loan made within a rate-shopping window may be counted as one inquiry for scoring purposes. The CFPB says the window generally ranges from 14 to 45 days, depending on the model.
Older and newer FICO models use different windows
Older FICO versions generally use a 14-day rate-shopping window. Newer versions use a 45-day window for mortgage, auto loan, and student loan inquiries. FICO also says qualifying inquiries less than 30 days old are ignored under this special treatment while the consumer is still shopping.
You usually do not know which score version a future lender will use.
The safest approach is to complete comparisons within about two weeks when practical, while understanding that some models provide a longer window.
Only similar loan inquiries are grouped
A mortgage inquiry and an auto loan inquiry are not one rate-shopping event. They involve different types of debt.
The CFPB confirms that shopping for two different loan types creates separate inquiry treatment.
The same applies when you apply for:
- A mortgage
- An auto loan
- A personal loan
- Three credit cards
That is not one shopping session.
It is several requests for different forms of borrowing.
Credit card applications are not grouped like auto loans
FICO’s special rate-shopping treatment applies to mortgage, auto loan, and student loan inquiries. Several consecutive credit card applications can indicate that the consumer is seeking several separate credit lines, so they are not treated like one car-loan comparison.
Applying for four cards this weekend does not become one inquiry because the forms were submitted quickly.
Each card could become a separate debt account.
Should you avoid shopping around because of inquiries?
No.
A small inquiry effect can be much cheaper than accepting the first loan offer and paying a higher rate for years.
Suppose two lenders offer a $30,000 five-year auto loan:
- Lender A offers 7%.
- Lender B offers 10%.
The 7% loan would have a payment of about $594 and total interest of roughly $5,642.
The 10% loan would have a payment of about $637 and total interest of roughly $8,245.
That is about $43 more every month and roughly $2,603 more in interest.
A possible few-point inquiry effect is not worth paying an extra $2,600 to avoid comparison.
Keep the shopping period focused and compare:
- The interest rate
- The APR
- Loan fees
- The repayment term
- The monthly payment
- The total amount repaid
The inquiry is one small part of the decision.
The price of the loan is the larger part.
How to minimize unnecessary hard inquiries
Check your reports before applying
Review your credit before a lender does. This lets you find report errors, unfamiliar accounts, and high balances that may affect approval.
Your own review is soft and does not lower your score.
Use soft-inquiry prequalification tools
A prequalification can help you narrow the list of lenders before submitting full applications.
Confirm in writing that the initial check is soft. Do not assume.
Research minimum requirements
Look at the lender’s likely score range, income requirements, fees, and loan amounts before applying.
A lender may not publish every underwriting rule. You can still avoid applications for products that clearly do not fit.
Apply for credit with a purpose
Do not open a store card for a $25 discount when you are about to seek a mortgage.
The discount ends at the register.
The inquiry and new account can remain much longer.
Keep rate shopping focused
Gather documents, compare lenders, and complete applications for the same loan type within a short period.
Do not request one auto loan today, another in six weeks, and a third three months later unless there is a real reason.
Ask before requesting a limit increase
A higher credit limit can reduce utilization when spending does not rise, but the request may create a hard inquiry.
Ask whether the issuer can evaluate the increase through a soft review.
Do not apply repeatedly after denials
A denial is information.
Read the adverse action notice, identify why the application failed, and address the problem before sending the same application elsewhere five more times.
More inquiries do not fix insufficient income, high balances, or recent delinquencies.
What if you do not recognize a hard inquiry?
An unfamiliar hard inquiry can have an innocent explanation.
The name may belong to:
- The bank behind a retail card
- A lender contacted by an auto dealer
- A mortgage company using a parent-company name
- A financing provider connected with a recent purchase
Compare the inquiry date with applications you made.
If you still do not recognize it, contact the company listed and ask what application caused the inquiry.
An unauthorized inquiry may signal identity theft
A hard inquiry can appear when someone uses your information to apply for credit. FICO advises reviewing reports for unexpected inquiries and investigating companies you do not recognize.
Check all three reports for:
- Other unfamiliar inquiries
- New accounts
- Addresses you have never used
- Collections or balances that do not belong to you
When identity theft is suspected, contact the lender’s fraud department, report the theft through the official federal identity theft process, and consider placing credit freezes with all three nationwide bureaus.
Can you dispute a hard inquiry?
You can challenge an inquiry that resulted from fraud, identity theft, duplication, or another factual error.
You generally cannot require the removal of an accurate inquiry simply because the application was denied or you regret applying. Accurate information is not an error. The CFPB says consumers should dispute inaccurate information with the reporting company and the business that supplied it, while accurate negative information generally cannot be removed merely because it is inconvenient.
Do not pay a credit repair company to dispute applications you knowingly submitted.
Common myths about hard and soft inquiries
Every credit check lowers your score
No. Soft inquiries do not affect credit scores.
Checking your own score is a hard inquiry
No. Your own review is soft.
Every hard inquiry costs the same number of points
No. FICO says the effect depends on the person’s credit file, and most people lose fewer than five points from one additional inquiry.
A denial removes the inquiry
No. The inquiry records that the lender reviewed your credit. It can remain even when no account was opened.
All applications made within 30 days count as one
No. Special rate-shopping treatment is generally limited to mortgage, auto loan, and student loan inquiries. Credit cards and unrelated loan types do not all merge into one inquiry.
Several lender names mean several score penalties
Not necessarily. Several qualifying auto or mortgage inquiries may appear separately on the report but be counted as one by the scoring model.
A soft inquiry cannot lead to any account decision
It can. An existing lender may use a soft review when managing an account, and a prescreened offer may begin with a soft inquiry. Soft means the inquiry does not affect your score, not that the information is ignored.
You should never accept a hard inquiry
No. A hard inquiry is a normal part of applying for useful credit. The goal is to avoid unnecessary applications, not every application.
Frequently asked questions
Does a hard inquiry always lower your score?
No. It can affect the score, but you may see little or no visible change. The result depends on your credit profile and the scoring model.
How many points does a hard inquiry cost?
FICO says one additional inquiry costs most people fewer than five points. Thin or young files can be affected more.
How long does a hard inquiry affect a FICO Score?
FICO Scores consider hard inquiries from the previous 12 months. The inquiry can remain visible on the credit report for up to two years.
Does checking Credit Karma or a bank app hurt your score?
No. Consumer score checks are generally soft inquiries.
Is prequalification always a soft inquiry?
No. Many lenders use soft inquiries, but the process varies. Read the disclosure and ask before submitting your information.
Is mortgage preapproval a hard inquiry?
It commonly involves a credit check and may create a hard inquiry. Mortgage lenders typically review credit before issuing a meaningful preapproval.
Can a landlord perform a hard inquiry?
Yes. Rental checks can be hard or soft depending on the landlord and screening process. Ask before applying.
Does requesting a credit limit increase cause a hard inquiry?
It can. Some issuers use a soft account review, while others perform a hard inquiry. Confirm the issuer’s process first.
Do several car loan inquiries count separately?
They can appear as separate records, but scoring models generally count qualifying auto loan inquiries made within a 14-to-45-day shopping period as one.
Do several credit card inquiries count as one?
No. Credit card applications do not receive the same rate-shopping treatment as mortgage, auto loan, and student loan inquiries.
Can I remove a legitimate hard inquiry?
You generally cannot require removal of an accurate inquiry. You can dispute one that resulted from fraud or inaccurate reporting.
Will an inquiry stop me from getting approved?
One inquiry is rarely the only reason for denial. A lender may also consider payment history, balances, income, existing debts, account age, and its own approval rules.
Should I wait until inquiries disappear before applying again?
Not automatically. Review why you were denied and whether the new application is necessary. Waiting can help when you have several recent applications, but fixing the underlying problem matters more.
Ask what kind of inquiry it is before you apply
Hard and soft inquiries both involve someone reviewing credit information. Only hard inquiries can affect your score.
A hard inquiry is usually a normal part of applying for a credit card, mortgage, auto loan, personal loan, or other new credit. A soft inquiry usually occurs when you check your own report, receive a prescreened offer, undergo employment screening, or have an existing lender review an account.
Do not become so afraid of hard inquiries that you accept a bad loan without comparison.
Also do not scatter applications around because each one appears harmless.
Check your own credit first. Use soft prequalification where available. Keep mortgage, auto, and student loan shopping within a focused period. Apply only when the account has a real purpose.
A hard inquiry is a small part of your credit profile.
Your payment habits and debt decisions last much longer.