Hard vs. Soft Credit Inquiry: What's the Difference and How Much Does It Hurt Your Score?

Quick answer: a soft inquiry (like checking your own credit) never affects your score. A hard inquiry happens when you apply for credit, like a card or a loan. According to FICO, for most people one hard inquiry takes off less than 5 points. It stays on your report for up to 2 years, but FICO scores only count it for 12 months.

The difference in one table

Examples of soft inquiries (don’t affect your score)

• Checking your own credit report or score, for example at AnnualCreditReport.com, in your bank app or on a free credit site
• “Pre-approved” or “prequalified” offers you get in the mail
• Prequalification tools on a bank’s website that say “won’t affect your credit score”
• Your current card company reviewing your account (for example, before a limit increase they offer you)
• Employer background checks (with your permission)
• Many insurance quotes

Bottom line: check your own credit as often as you want. It’s free, and it never hurts your score.

Examples of hard inquiries (can affect your score)

• Applying for a credit card, including a secured card
• Applying for a loan: personal, car, student or mortgage
• Asking for a credit limit increase (with some issuers; ask whether it’s a hard or soft pull)
• Some apartment rental applications
• Some phone or internet contracts with a financed device

Not sure which kind it is? Ask before you authorize it: “Is this a hard or soft credit pull?”

How much a hard inquiry really hurts

Much less than most people think. FICO, the company behind the most-used credit score, says:

• For most people, one inquiry takes off less than 5 points.
• Inquiries are part of “new credit”, which is about 10% of your FICO score. Paying on time and how much you owe matter much more.
• The effect can be bigger if you have a short credit history or few accounts. So if you’re just starting to build credit, don’t apply for several cards at once.
• Many inquiries in a short time look risky to lenders: it can look like you urgently need money.

Rate shopping: several inquiries that count as one

When you compare mortgages, car loans or student loans, several lenders will check your credit. FICO knows you’re shopping for one loan, not ten:

• Inquiries for the same kind of loan made within a short window (14 days for older FICO versions, 45 days for newer ones) count as one.
• FICO also ignores those inquiries during the 30 days before your score is calculated.

Tip: do all your comparing in about 14 days to be safe with any score version.

Warning: this rule does not apply to credit cards. Each card application counts as a separate hard inquiry.

How to avoid unnecessary hard inquiries

1. Use prequalification first. Many issuers let you see your approval odds with a soft inquiry.
2. Space out your applications. For people building credit, a common habit is to wait about 6 months between applications.
3. Apply only for what you’re likely to get. A denial still leaves a hard inquiry on your report.
4. Don’t apply for store cards just for a discount at checkout.
5. Ask before any credit check whether it’s hard or soft.

What if you see a hard inquiry you didn’t authorize?

An unknown hard inquiry can be a sign that someone applied for credit in your name.

1. Get your free reports from all three bureaus at AnnualCreditReport.com.
2. Contact the company that made the inquiry and ask why.
3. If it’s an error or fraud, dispute it with the credit bureau: see how to dispute an error on your credit report.
4. If it’s identity theft, report it at IdentityTheft.gov and consider a credit freeze, which is free.

Note: you can’t remove a correct inquiry just because you don’t like it. If you applied, it stays. Be careful with companies that promise to “erase inquiries” for a fee.

FAQ

Does checking my own credit score lower it? No. Checking your own credit is always a soft inquiry.

Does getting denied for a card hurt more than being approved? No. The inquiry is the same either way. But a denial means you took the hit without getting the card, so try prequalification first.

Does a landlord’s credit check hurt my score? It depends on the check. Many tenant screenings are soft, but some are hard. Ask the landlord or the screening company.

Do hard inquiries affect my score if I have no credit history yet? If you have no score, there’s nothing to lower yet. But once you have a short history, inquiries can weigh more, so apply carefully.

This article is for educational purposes only and is not financial advice. Scoring models and lender practices vary. Read our Disclaimer.