Soft credit inquiry vs. hard inquiry: What’s the difference?

A credit inquiry takes place when a lender or authorized party like a potential employer checks your credit reports. These credit checks can take two forms—soft inquiries or hard inquiries—and are done for reasons that include gauging your eligibility for credit, jobs, housing and insurance. 

Understanding the differences between soft and hard credit inquiries can help you make informed decisions about applying for credit cards, loans and more.

What you’ll learn:

• Soft credit inquiries, sometimes called soft pulls or soft checks, don’t impact credit scores.

• Soft credit inquiries can happen when you check your own credit scores or get pre-approved for a credit card or other loan.

• Hard credit inquiries, sometimes called hard pulls or hard checks, may have a temporary negative effect on credit scores.

• Hard credit inquiries are typically tied to a specific credit application for credit cards and other loans.

A soft credit inquiry is also known as a soft check or a soft pull. A soft inquiry occurs when your credit is reviewed either by you, an authorized individual such as a potential employer, or an organization. These inquiries offer a look at your credit reports and credit scores, which can provide a snapshot of how you’re managing your finances.

Soft credit inquiries are used in a variety of situations. Credit card issuers might use soft credit inquiries to help you check your credit scores. 

A soft inquiry might also be triggered when: 

• Banks and other financial institutions verify your identity and credit history to open a new account.

• Potential employers run background checks before offering a job.

• Lenders make pre-approval offers.

• Insurance companies decide whether to offer coverage.

Soft credit checks can stay on your credit reports for up to two years, but they won’t affect your credit scores.

A hard credit inquiry, also known as a hard credit check or a hard pull, happens when a lender checks your credit after you apply for a loan. But there’s one major difference between a hard inquiry and a soft inquiry:

“[Hard] inquiries will impact your credit score because most credit-scoring models look at how recently and how frequently you apply for credit,” the Consumer Financial Protection Bureau (CFPB) says. 

That includes scores from credit scorer FICO®. New inquiries are one of five categories the company uses to calculate credit scores. And it makes up 10 percent of the company’s calculations.

A hard credit inquiry is typically used when you apply for a loan or credit. That might include applications for credit cards, personal loans, mortgages and auto loans. Some landlords use hard credit pulls when you submit a rental application.

According to FICO, hard inquiries may lower credit scores by about five points. Hard inquiries can stay on your credit reports for up to two years, but FICO only looks at inquiries from the most recent year.

Here’s a glance at the key differences between soft and hard credit inquiries:

Because hard inquiries can impact your credit scores, the CFPB says to only apply for credit you need. Here are some tips for managing the number of hard pulls on your credit:

Before you apply for credit, checking whether you’re pre-approved can help you compare options and find the right fit. With pre-approval from Capital One, you simply answer a few questions. The process won’t affect your credit scores, because it uses a soft inquiry.

Most credit and loan applications require individual hard inquiries. But according to the CFPB, the credit inquiries involved with researching home and auto financing are treated as a single inquiry if all the inquiries happen within 14 and 45 days.

Regularly checking your credit reports can help you stay on top of factors that impact your credit, including hard inquiries. You can get free copies of your credit reports from each of the three major credit bureaus by visiting AnnualCreditReport.com.

CreditWise from Capital One is another way to monitor your credit score. With CreditWise, you can check your credit scores and credit report for free—even if you’re not a Capital One cardholder. And with the CreditWise Credit Simulator, you can explore the potential impact of several financial decisions, including applying for a credit card, before you make them.

Checking your credit is an example of a soft inquiry, which doesn’t impact your credit scores. 

Hard inquiries happen when a lender checks your credit report after you apply for credit. And because hard inquiries affect your credit scores, the CFPB says to apply only for the credit you need.

If you’re new to credit or searching for your next credit card, Capital One can help: 

• See if you’re pre-approved for credit cards without harming your credit scores. 

• If you’re looking to build your credit with responsible use, explore cards for people with fair credit. 

• Earn unlimited 1.5% cash back on every purchase, every day, with a cash back rewards card. 

• Monitor your credit report and score with CreditWise. It’s free for everyone, and using it won’t hurt your credit.