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

A soft credit inquiry doesn’t hurt credit scores and doesn’t always require permission. It could take place for a variety of reasons, such as loan pre-approvals and background checks. A hard credit inquiry, on the other hand, typically occurs when you apply for credit. It requires authorization and can temporarily lower credit scores.

What you’ll learn:

• Both soft and hard inquiries can stay on credit reports for up to two years, but lenders can’t typically see soft inquiries. 

• 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 are typically tied to a specific credit application, such as for credit cards, mortgages and other loans.

• You can minimize the impact of hard inquiries by checking to see if you’re pre-approved before applying for credit, keeping loan rate shopping to a limited time window and more.

Here’s an at-a-glance comparison of the key characteristics of soft and hard credit inquiries:

A soft credit inquiry, sometimes called a soft pull or soft credit check, occurs when your credit is reviewed either by you, an authorized individual such as a potential employer or an organization. These inquiries provide a snapshot of how you’re managing your finances.

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

Soft credit inquiries may be used in a variety of situations for screening or pre-approval processes. Credit card issuers might also use soft credit inquiries when you check your own credit scores. 

Here are a few examples of when a soft inquiry might be used: 

• A bank or financial institution verifies your identity and credit history to open a new account.

• A potential employer runs a background check before offering you a job.

• A credit card issuer or lender makes a pre-approval offer.

• An insurance company decides whether to offer coverage.

• A utility company decides whether to require a deposit to establish a new account.

A hard credit inquiry, also called a hard pull or hard credit check, happens when a lender checks your credit after you apply for a loan. Unlike a soft inquiry, a hard inquiry can affect your credit scores. 

“[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% of the company’s calculations.

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.

A hard credit inquiry is typically used when you apply for a loan or credit. 

Here are a few examples of applications that may require a hard credit inquiry:

• Credit cards
• Personal loans
• Mortgages
• Auto loans
• Housing rentals or leases

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 they all happen within 14 to 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. 

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

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

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