Personal Finance Basics

Soft inquiry vs hard inquiry: understanding credit checks

Updated: May 13th, 2025 Updated: May 13, 2025 Read time: 6 min

Woman reviews her credit report to check for hard inquiries and soft pulls

When someone checks your credit, it happens in one of two ways — either as a soft inquiry vs. hard inquiry. These checks happen all the time. However, not many people know the difference between them.

Whenever you apply for a loan or check your credit, someone looks at your credit report. How they pull your credit matters because it can impact your score. Let’s break down the differences between soft inquiry vs. hard inquiry, how they affect your credit score, and what you need to know about them. 

What is a soft inquiry?

A soft inquiry (soft credit pull) happens when someone checks your credit report for background information. It’s the gentler type of credit check. 

A soft credit inquiry is a review of your credit, which includes:

  • Existing accounts
  • Pre-screening inquiries by potential lenders
  • Your requests for a free annual credit report

Unlike hard inquiries, soft inquiries can happen without your direct permission. Companies can do soft pulls to see if you qualify for their offers. This is why you get credit card offers in the mail even when you didn’t ask for them. 

Credit services also use soft inquiries in what is known as a pre-qualification. This is to help borrowers find a loan. These pre-qualifications require information about a borrower, including their Social Security number.

When you check your credit score, that’s a soft inquiry. You can check your credit as often as you want without any negative effects or impact to your credit score through a credit service or credit card company.

Couple reviewing their credit report

Do soft inquiries affect your credit score?

Soft credit inquiries don’t affect your credit score. Soft inquiries aren’t tied to an actual loan or exchange of money. That means there’s no impact on your credit score when a soft inquiry is performed.

When are soft credit inquiries used?

There are various reasons soft credit inquiries are done. Common reasons for soft pulls include:

  • Checking your credit score
  • Pre-qualified insurance quotes
  • Pre-qualified credit card offers
  • Employment verification and/or background checks
  • Some personal loan applications (in these cases, a soft inquiry is used until your application is approved; once you decide to proceed with the loan, a hard inquiry is then performed)

Note: Some types of credit checks could appear on your credit history as either a hard or soft inquiry. This includes cable, utility, cell phone, and internet providers checking your credit. If you want to know what type of inquiry will be performed, contact the company, credit card issuer, or financial institution to find out whether these credit checks are hard or soft.

What is a hard inquiry?

A hard inquiry occurs when a bank or lender checks your credit after you express interest in a loan or credit card. This happens when you fill out an application for a credit card, mortgage, auto loan, or other type of loan. 

Unlike a soft pull, a hard inquiry requires your permission. When you sign a loan application, you give the lender permission to check your credit history. This offers a more detailed look at your credit than a soft inquiry. 

Do hard inquiries affect your credit score?

Unlike soft credit checks, hard inquiries can affect your credit score. A hard credit pull usually drops your credit score by a few points. However, a single hard inquiry probably won’t have much of an impact on whether you get approved for a new loan or a credit card.

If several hard credit inquiries are performed in a short period, lenders may see that as a higher risk when deciding whether to provide a loan. Why? Because multiple credit applications in a short amount of time can give lenders the impression that the borrower is not in great financial shape. A borrower seeking many different forms of credit may also give lenders the idea that a borrower could pile up multiple sources of debt.

When are hard inquiries used?

A hard credit inquiry is used when you’re looking to make a financial commitment through a loan or credit card application. Common reasons for a hard pull include:

  • Student loan applications
  • Credit card applications
  • Mortgage applications
  • Auto loan applications
  • Personal loan applications
  • Apartment rental applications

Any of these applications may result in a hard credit inquiry. But that’s not necessarily a bad thing. One or two hard credit pulls may temporarily lower your credit score by a few points. Doing so usually isn’t enough to damage your overall credit.

How long do hard inquiries last on your credit report?

Hard inquiries can stay on your credit report for up to two years. But the impact on your credit score (usually just a few points) often disappears before the credit inquiry drops off your credit reports.

Soft inquiry vs. hard inquiry: Key differences

Let’s look at the main differences between soft vs hard inquiries:

Soft Credit InquiriesHard Credit Inquiries
Occur when your credit is checked for informational purposes or to provide pre-approved credit offersOccur when your credit is checked for lending decisions after you apply for a form of credit
Do not affect your credit scoreAffect your credit score
Do not require your permissionRequire your permission as part of the application process
Are on your credit report for up to two years but are not visible to potential lendersAre on your credit report for two years and are visible to creditors

Purpose of inquiry

Soft inquiries happen when someone checks your credit for information only. You often don’t know when they happen. They’re also used for pre-approvals and pre-qualifications. 

On the other hand, hard credit pulls happen when you apply for a loan or credit card. They’re part of the official application process when actively looking for new credit. 

Permission requirements

Soft inquiries can happen without your permission, while hard pulls require your permission. When you sign an application, you’re authorizing the hard pull. 

Who can see them

Only you can see soft inquiries on your credit report. Lenders won’t see them. In contrast, everyone who looks at your credit report can see hard inquiries. They’ll even see which companies checked your credit and when. 

Effect on your credit

Soft inquiries don’t impact your credit score, but hard inquiries can lower your score by several points. Luckily, the effects of hard credit inquiries typically go away within a few months. 

Tips for minimizing credit inquiries 

Minimizing credit inquiries can prevent your score from dropping a few points. This can be especially important if you plan on applying for credit or a loan in the near future. 

A few ways to keep hard inquiries to a minimum are:  

Rate shopping

If you’re shopping for a mortgage, auto loan, or student loan, do it within a short time frame. Credit scoring models usually count multiple inquiries for the same type of loan within 14 to 45 days as just one inquiry. 

Check for pre-approvals

Even if you have a good credit score, it’s always a good idea to see if you pre-qualify for a loan or line of credit before applying. This helps you know if you’ll likely be approved without the hard inquiry. 

Space out credit applications

When deciding how many credit cards you need, try not to apply for several different types of credit within a short time. Wait a few months between applications when possible. 

Research first

Before applying, research the requirements for loans or credit cards to make sure you’re likely to qualify. This helps avoid unnecessary hard inquiries. 

Check your own credit regularly

Monitoring your own credit score is a soft inquiry. Check it often to know where you stand before applying for new credit. 

Man using his credit card to buy something online

Make smart moves when applying for credit

Understanding the difference between a soft inquiry vs. hard inquiry helps you protect your credit score. When you’re working to build credit, be smart about how you apply for loans. At Sun Loan, we understand that managing your credit is necessary for your overall financial health. We offer personal loan options that help you progress while avoiding bad money habits.  

Our application  process uses a soft pull first to determine if you qualify without affecting your credit score. Plus, making on-time payments on one of our loans can help build your credit history positively over time.

Author – Holly Munoz

Holly Munoz serves as Regional Vice President at Brundage Management, the management holding company that operates Sun Loan and related subsidiaries. Holly has over 15 years of experience in the loan ... Read more »

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