Every time your credit is checked, the request is logged as either a hard inquiry or a soft inquiry, and only one of them affects your score. Knowing the difference helps you apply for credit strategically and avoid needless worry over harmless checks. It also reveals how to shop for a loan without being penalized for comparing offers.
What a hard inquiry is
A hard inquiry, or hard pull, happens when you actively apply for credit, such as a new card, mortgage, auto loan, or credit-limit increase. It signals that you are seeking new debt, so it can lower your FICO score, though usually by fewer than five points. A hard inquiry stays on your credit report for two years but typically affects your score for only about one year. A single inquiry is minor; many in a short span can add up and look risky.
What a soft inquiry is
A soft inquiry occurs when your credit is checked without a full application, and it has no effect on your score at all. Checking your own score, prequalified offers, background checks by employers, and account reviews by lenders you already use are all soft pulls. You can check your own credit as often as you like with no penalty. Soft inquiries may appear on your report, but only you can see many of them, and they never factor into scoring.
How rate shopping is protected
Scoring models recognize that comparing loan offers is smart, so multiple hard inquiries for the same type of loan, such as a mortgage or auto loan, are bundled together within a shopping window. Depending on the model, that window is roughly 14 to 45 days, and the cluster counts as a single inquiry for scoring. This lets you get quotes from several lenders without stacking up separate dings. The protection generally applies to loans, not to credit-card applications.
Managing inquiries wisely
Because each hard inquiry costs only a few points and fades within a year, you should not avoid beneficial credit just to dodge one. Do, however, space out card applications and avoid applying for several accounts right before a big loan like a mortgage. When you do shop for a mortgage or car loan, cluster your applications into a short window to trigger the rate-shopping protection. Keep prequalification, which is a soft pull, in mind for gauging approval odds without any impact.
You get five auto-loan quotes within a two-week span. Because scoring models treat same-purpose loan inquiries in that window as one, your score sees the effect of a single hard pull rather than five. Applying for five credit cards in that same span, by contrast, would register as five separate inquiries.
Key takeaways
- Hard inquiries come from applying for credit and can lower your score by a few points.
- Soft inquiries, including checking your own score, never affect your score.
- A hard inquiry stays on your report two years but affects scoring for about one.
- Rate shopping for one loan type within about 14 to 45 days counts as a single inquiry.
- Space out applications, especially before a major loan.
Common mistakes
- Avoiding a needed loan application out of fear of a tiny, temporary inquiry.
- Spreading auto or mortgage applications over many weeks and losing the rate-shopping bundle.
- Opening several cards right before applying for a mortgage.
FAQ
Does checking my own credit score hurt it?
No. Checking your own credit is a soft inquiry and has zero effect on your score, no matter how often you do it.
How much does a hard inquiry lower my score?
Usually fewer than five points, and the effect fades within about a year. The bigger risk is many inquiries in a short period.