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

The primary difference between a hard credit inquiry and a soft credit inquiry is how they impact credit scores. A hard credit inquiry might temporarily lower credit scores. A soft credit inquiry doesn’t.

What you’ll learn:

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

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

• 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, such as applying for a credit card or auto loan.

A hard credit check is usually made by a lender after you apply for credit, such as a loan or credit card. This type of inquiry can temporarily impact your credit scores.

A soft credit check is often a review of your credit—for example, when you request your annual credit report or are pre-approved for a credit card. But there are also instances where lenders or credit monitoring tools might use them. These don’t change your credit scores.

A soft credit inquiry, also referred to as a soft check or a soft pull, happens when you, an authorized individual or an organization reviews your credit file. Soft credit inquiries reveal your credit reports and credit scores, which can provide a snapshot of how well you’re managing your finances. Soft inquiries don’t impact credit scores.

Some examples of what might trigger soft credit inquiries include:

• Checking your credit reports and scores

• Opening a bank account

• Having a background credit check run by a potential employer

• Being pre-approved for a credit card

• Pre-qualifying for an auto loan 

• Getting an insurance quote

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. This type of credit inquiry can temporarily decrease credit scores—usually by just a few points. This is because credit-scoring models generally look at how recently and how often you’ve applied for credit. 

Hard inquiries can stay on your credit reports for up to two years. But hard inquiries that are more than a year old may not affect your scores.

Some examples of what might trigger hard credit inquiries include:

• Applying for a credit card

• Applying for an auto loan

• Applying for a personal loan

• Applying for a mortgage or to rent an apartment

• Opening accounts for services like phone, cable or internet

• Requesting a credit limit increase, depending on the lender’s policies

According to FICO, applying for multiple credit lines in a short period of time can affect your credit scores because it could indicate a greater credit risk to lenders. That’s part of the reason the Consumer Financial Protection Bureau (CFPB) says, “Only apply for the credit you need.”

Because hard inquiries impact your credit, you may want to limit them where possible. Here are some tips to manage the number of hard pulls on your credit:

Before you apply for credit, checking for pre-approval offers can help you compare options and find the right fit. With pre-approval from Capital One, you just answer a few questions to see if you’re eligible for cards. The process doesn’t harm your credit scores because it uses a soft inquiry.

“Credit scoring formulas look at your recent credit activity as a signal of your need for credit,” the CFPB says. “If you apply for a lot of credit over a short period of time, it may appear to lenders that your economic circumstances have changed negatively.”

Most types of credit applications require a hard inquiry. But that may not always be true for mortgages and auto loans. According to the CFPB, shopping for auto or home financing within 14 to 45 days is generally counted as a single inquiry.

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 easy way to monitor your credit. With CreditWise, you can stay on top of 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. On the other hand, hard inquiries happen when a lender checks your credit report after you apply for credit. And because hard inquiries affect your credit scores, applying only for the credit you need is best.

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.