Hard vs Soft Credit Inquiry: What's the Difference & How They Affect You

When you apply for a credit card, mortgage, or car loan, lenders check your credit—but not all credit checks are created equal. Hard inquiries can temporarily lower your credit score by up to 5 points and stay on your report for two years, while soft inquiries have zero impact on your score and are invisible to lenders. Understanding this distinction is crucial for protecting your credit health when shopping for loans, applying for new credit cards, or even renting an apartment. The good news? Checking your own credit is always a soft inquiry, and strategic rate shopping can minimize hard inquiry damage. This guide breaks down everything you need to know about credit inquiries, including when each type occurs, how long they affect your score, and how to dispute unauthorized hard pulls that could signal identity theft.

What Are Credit Inquiries?

A credit inquiry occurs anytime someone accesses your credit report. According to the Consumer Financial Protection Bureau (CFPB), these requests fall into two categories: hard inquiries and soft inquiries.

Think of your credit report as a detailed financial resume that creditors review when deciding whether to extend credit to you. Every time someone views this resume, it creates a record—an inquiry. But the type of inquiry and its impact on your credit score depends entirely on why your report was accessed.

Credit inquiries appear in a dedicated section of your credit report, making them easy to identify when you review your credit report. Understanding what triggers each type helps you make informed decisions about when to apply for new credit.

Hard Inquiries Explained

A hard inquiry (also called a "hard pull" or "hard credit check") occurs when a lender reviews your credit report after you've applied for credit. This type of inquiry requires your authorization and signals to other lenders that you're actively seeking new credit.

When Hard Inquiries Happen

Hard inquiries typically occur in these situations:

• Credit card applications – Every new credit card application triggers a hard pull
• Mortgage applications – Home loan lenders check your complete credit profile
• Auto loan applications – Car financing requires a hard credit check
• Personal loan applications – Banks and online lenders pull your credit
• Student loan applications – Private student loans require hard inquiries
• Credit limit increase requests – Asking for a higher limit often triggers a hard pull
• Some apartment rental applications – Many landlords perform hard credit checks
• Some utility account setups – Certain utility companies may hard-pull your credit

The Impact of Hard Inquiries on Your Score

According to myFICO, hard inquiries typically lower your FICO Score by less than 5 points per inquiry. However, the actual impact varies based on your individual credit profile:

• People with shorter credit histories may see larger drops
• Those with few accounts may experience more significant impact
• Consumers with excellent credit typically see minimal effects

Here's a key statistic that explains why scoring models factor in hard inquiries: research shows that people with 6 or more inquiries on their credit reports are up to 8 times more likely to declare bankruptcy than those with no inquiries.

How Long Hard Inquiries Last

Hard inquiries follow a specific timeline:

• Remain on your credit report: 2 years
• Affect your FICO Score: Only 12 months

This means that while a hard inquiry technically stays visible for two years, its impact on your credit score diminishes after the first year and eventually disappears entirely.

Soft Inquiries Explained

A soft inquiry (also called a "soft pull" or "soft credit check") is a credit check that doesn't affect your credit score. These inquiries may occur with or without your direct authorization and are only visible to you—not to other lenders viewing your report.

When Soft Inquiries Happen

Soft inquiries occur in these common scenarios:

• Checking your own credit – Monitoring your own report is always a soft pull
• Pre-approval and prequalification offers – Credit card companies screening you for offers
• Existing account reviews – Your current creditors monitoring your accounts
• Employer background checks – Employment screening (with your permission)
• Insurance quotes – Insurers checking credit for pricing purposes
• Bank account applications – Most banks use soft inquiries for new accounts
• Utility service applications – Many utility companies only soft-pull credit

Why Soft Inquiries Don't Affect Your Score

Soft inquiries don't impact your credit score for a logical reason: they don't indicate you're seeking new credit. When you check your own credit or receive a prequalification offer, you haven't actually applied for anything—so credit scoring models don't treat these checks as risk factors.

According to the CFPB, soft inquiries may appear on the version of your credit report you see, but lenders cannot see them. This creates a one-way visibility where only you have access to this information.

Hard vs Soft Inquiries: Complete Comparison

Here's a comprehensive comparison of how hard and soft inquiries differ across key factors:

Common Scenarios: Which Type of Inquiry?

Different financial activities trigger different types of inquiries. Here's a quick reference:

Rate Shopping: The Smart Exception

If you're shopping for a mortgage, auto loan, or student loan, you might worry about multiple hard inquiries damaging your score. Here's the good news: credit scoring models recognize rate shopping and provide special treatment for these essential purchases.

How the Rate Shopping Window Works

According to myFICO, FICO Scores count multiple hard inquiries for the same type of loan as a single inquiry when they occur within a defined shopping window:

• Newer FICO versions: 45-day window
• Older FICO versions: 14-day window

Since each lender chooses which FICO version to use, the safest approach is to complete your rate shopping within 14 days to ensure all inquiries are grouped together regardless of which scoring model is applied.

The 30-Day Buffer

Even better: for mortgage, auto, and student loans, FICO Scores completely ignore all inquiries made in the 30 days before scoring. This means if you find and secure a loan within 30 days, those rate shopping inquiries won't affect your score at all during that period.

Important Limitation

The rate shopping exception applies only to:

• Mortgages
• Auto loans
• Student loans

It does not apply to credit cards. Each credit card application counts as a separate hard inquiry, so apply strategically and only for cards you truly need.

How to Check Your Credit Inquiries

Reviewing your credit report regularly helps you track inquiries and spot potential problems. Here's how to access your reports for free.

Free Credit Report Access

Under federal law, you're entitled to free credit reports from all three major bureaus through AnnualCreditReport.com. Currently, free weekly reports are available from:

• Equifax – Also offering 6 additional free reports per year through 2026
• Experian
• TransUnion

When reviewing your report, look for two separate inquiry sections:

1. Hard inquiries – Visible to lenders and affect your score
2. Soft inquiries – Only visible to you

Credit Bureau Contact Information

If you need to contact the bureaus directly:

Disputing Unauthorized Hard Inquiries

If you discover a hard inquiry from a company you don't recognize, this could indicate identity theft or an error. You have the right to dispute unauthorized inquiries and have them removed.

When to Dispute

Consider disputing if:

• You don't recognize the company that made the inquiry
• You never applied for credit with that company
• The inquiry date doesn't match any credit application you made

Unauthorized inquiries can be a warning sign of identity theft. Learn more about protecting yourself in our credit freeze guide.

How to File a Dispute

According to the FTC, follow these steps to dispute an unauthorized inquiry:

Step 1: Gather your documentation

• Copy of your credit report with the inquiry highlighted
• Any supporting evidence (e.g., records showing you didn't apply for credit)

Step 2: Contact the credit bureau(s)

File your dispute with each bureau reporting the unauthorized inquiry:

Equifax:

• Online: equifax.com/personal/credit-report-services/credit-dispute/
• Phone: (866) 349-5191
• Mail: P.O. Box 740256, Atlanta, GA 30348

Experian:

• Online: experian.com/disputes/main.html
• Phone: (888) 397-3742
• Mail: P.O. Box 4500, Allen, TX 75013

TransUnion:

• Online: dispute.transunion.com
• Phone: (800) 916-8800
• Mail: P.O. Box 2000, Chester, PA 19016

Step 3: Wait for investigation

Credit bureaus must investigate disputes within 30 days and report results back to you in writing.

For detailed guidance on the dispute process, see our complete guide on how to dispute credit report errors.

If You Suspect Identity Theft

If unauthorized inquiries suggest someone is opening accounts in your name:

1. File a report at IdentityTheft.gov
2. Place a fraud alert with one credit bureau (they'll notify the others)
3. Consider a credit freeze to prevent new accounts from being opened

Protecting Your Credit from Unwanted Inquiries

Prevention is better than correction. Here's how to protect your credit from unauthorized hard inquiries.

Credit Freezes

A credit freeze restricts access to your credit report, preventing new accounts from being opened in your name. According to the FTC:

• Free to place and lift
• Lasts until you remove it
• Does not affect your credit score
• Must contact each bureau separately

Fraud Alerts

Fraud alerts require lenders to verify your identity before opening new accounts:

• Initial fraud alert: Lasts 1 year (renewable)
• Extended fraud alert: Lasts 7 years (requires identity theft report)
• Active duty alert: Lasts 1 year for military members
• Free to place
• Contact one bureau; they notify the others

Strategies to Minimize Hard Inquiry Impact

While you can't always avoid hard inquiries, you can minimize their impact:

1. Only apply for credit you need – Don't apply speculatively or for cards you'll never use
2. Use pre-qualification tools – Many lenders offer soft-pull prequalification before formal application
3. Rate shop strategically – Complete mortgage, auto, or student loan shopping within 14 days
4. Check your credit first – Know your score before applying so you apply only where you're likely to be approved
5. Ask before applying – Confirm whether a hard or soft inquiry will be performed
6. Space out applications – If possible, wait 6+ months between credit card applications
7. Focus on what matters most – Hard inquiries are only 10% of your score; payment history (35%) matters far more

Frequently Asked Questions

Conclusion

Understanding the difference between hard and soft credit inquiries empowers you to make smarter financial decisions. Hard inquiries—triggered by credit applications—can temporarily lower your score by a few points and stay on your report for two years. Soft inquiries—from checking your own credit, pre-approvals, or background checks—have zero impact on your score.

The key takeaways to remember:

• Checking your own credit is always safe – Do it regularly without worry
• Hard inquiries have minimal impact – Usually less than 5 points, lasting only 12 months
• Rate shopping is protected – Multiple mortgage, auto, or student loan inquiries within 14-45 days count as one
• You can dispute unauthorized inquiries – Review your reports and challenge any hard pulls you didn't authorize
• Prevention beats correction – Use credit freezes and fraud alerts to protect against unauthorized access

Your credit health depends on many factors, and inquiries play a relatively small role compared to payment history and credit utilization. Focus on building positive credit habits, monitor your reports regularly, and apply for new credit strategically. With this knowledge, you can confidently navigate credit applications while protecting your score.