When you apply for credit, lenders typically perform a hard inquiry, which can temporarily lower your score. However, not all credit checks have the same impact. Here’s what you need to know about hard vs. soft credit checks—and how they affect your credit.
1. Hard Inquiries (Hard Pulls)
What They Are:
- A lender reviews your credit report when you apply for a loan, credit card, mortgage, or rental agreement.
- Requires your permission and can slightly lower your credit score (usually by 5–10 points).
When They Happen:
✔ Applying for a new credit card
✔ Getting a car loan or mortgage
✔ Some apartment rental applications
✔ Utility service setups (in some cases)
How Long They Affect Your Score:
- Stays on your credit report for 2 years
- Biggest impact fades after a few months
- Multiple hard inquiries in a short period (e.g., mortgage or auto loan shopping) may count as one if done within 14–45 days (depending on the scoring model).
2. Soft Inquiries (Soft Pulls)
What They Are:
- A credit check that does not affect your score.
- Often done for background checks, pre-approvals, or account reviews.
When They Happen:
✔ Checking your own credit score (via Credit Karma, Experian, etc.)
✔ Pre-approved credit card offers
✔ Employer background checks (in some cases)
✔ Insurance rate checks
✔ Existing lenders reviewing your account
Key Differences from Hard Pulls:
✅ No permission needed (you don’t have to authorize them)
✅ No impact on credit score
✅ Not visible to lenders, only you can see them
How to Minimize the Impact of Hard Inquiries
- Space out credit applications (avoid multiple hard pulls in a short time).
- Pre-qualify first (many lenders offer soft-pull pre-approvals).
- Check if you really need the credit before applying.
- Monitor your credit report for unauthorized hard inquiries (could indicate fraud).
