Soft vs. Hard Credit Check: What They Mean for Your Credit Score

When you apply for credit, prequalify for an offer or shop around for financing, lenders may review your credit. Depending on the situation, they may perform either a soft credit check or a hard credit check.

Hard inquiries are recorded on your credit reports and can cause a slight drop in your credit score, while soft inquiries have no impact on your score.¹ Understanding the differences can help you make informed decisions, avoid unnecessary impacts to your credit score and consider credit strategically.

Hard vs. Soft Credit Checks

Lenders use both hard and soft credit inquiries depending on the situation. Here is a quick breakdown of how each one works.¹

What Is a Soft Credit Check?

A soft credit check, also referred to as a soft inquiry or soft pull, is commonly used for informational or eligibility purposes, including:

• Prequalification offers (seeing if you may qualify before you apply)
• Account reviews by current lenders (e.g., periodic reviews for offers or potential credit line changes)
• Consumer-initiated checks (when you check your own credit)
• Certain nonlending screenings where permitted and with required consent (e.g., employment, insurance, rental, utilities)

Because soft credit checks aren’t tied to a formal application for funding and don’t change the amount of available credit a borrower has, they don’t affect your credit score. They may appear on your credit report, but only you can see them — other lenders cannot.

Common Reasons You Might See a Soft Inquiry

Soft inquiries can appear on your credit report for several reasons, including:

• Checking your own credit. Reviewing your own credit report or score creates a soft inquiry, but it doesn’t affect your credit score.
• Employer screening. If allowed in your state, some employers (with your consent) may run your credit as part of the job application process.
• Existing creditor account reviews. Some creditors will periodically review your credit for a variety of reasons, such as to determine if you qualify for any offers or credit limit increases.
• Prequalification. Many lenders use soft credit checks during prequalification so you can see whether you’re likely to qualify before submitting a full application. For example, the CareCredit credit card lets people see if they qualify with a soft credit check, with no impact on their credit score. If you decide to move forward with a full application, CareCredit offers an easy application process, with credit decisions typically provided in less than six seconds.

What Is a Hard Credit Check?

A hard credit check, also known as a hard inquiry or hard pull, usually occurs when you formally apply for new credit. Lenders use this more detailed review of your credit history to help decide whether to approve your application and what borrowing terms to offer, such as your credit limit or interest rate.

Hard inquiries generally signal that you’re actively seeking new credit, which can temporarily lower your credit score. For many consumers, the impact is modest — often fewer than five points on a FICO® score and around five to 10 points on a VantageScore® — though the exact effect depends on your overall credit profile. This happens because most credit scoring models consider recent credit applications (often categorized as “new credit”) when calculating scores. With responsible credit use, many people see their scores rebound over time.⁴

Common Reasons You Might See a Hard Inquiry

Hard inquiries most commonly occur when you’re requesting new credit or services that require a lending decision, including:

• Applying for a new credit card. Generally when you apply for credit, even if you are not approved, that involves a hard credit check.
• Applying for an auto loan, mortgage or personal loan. Various types of loans usually involve hard credit pulls as well.
• Some rental, utility or telecom applications. Depending on the provider, these companies may perform either a soft or hard credit inquiry as part of the application process. If a hard inquiry is required, you’ll generally be asked to authorize it beforehand.

Do Hard Inquiries Hurt Your Credit Score?

Hard inquiries can impact your credit score, but the effect is typically small and temporary. Depending on the type of credit score, most people see a decrease by fewer than five points to about 10 points. In many cases, the impact fades within a few months, especially if you continue to use credit responsibly.⁵

How long do hard checks affect your score?

While a hard credit inquiry remains visible on your credit report for up to two years, most credit scoring models only consider it for a shorter period. FICO® Scores, for example, generally only consider hard inquiries made within the previous 12 months.⁵

What if you have multiple credit inquiries?

Applying for multiple credit products in a short amount of time could cause a more significant decrease in score because it could suggest you have a greater need for new credit.

That said, credit scoring models recognize that consumers often compare lenders before choosing a loan. As a result, multiple hard inquiries for the same type of loan — such as a mortgage, auto loan or student loan — made within a designated shopping window are generally treated as a single inquiry for scoring purposes. FICO® uses a 45-day window, while VantageScore® uses 14 days.⁵

What determines the size of the credit score drop?

The effect of a hard inquiry varies from person to person and depends on several factors, including:⁶

• The length of your credit history
• The number of recent hard inquiries
• Your overall credit profile, including payment history and credit utilization
• Whether you’re applying for multiple unrelated credit products at once

How Long Do Hard and Soft Inquiries Stay on Your Credit Report?

Both hard and soft credit inquiries can remain on your credit reports for up to two years with Experian, Equifax and TransUnion, the three major credit bureaus.⁷

However, an inquiry can remain visible on your credit report even after it no longer affects your credit score. In other words, how long an inquiry appears on your report isn’t the same as how long it’s factored into credit scoring models.

How to Minimize Hard Inquiries

While hard inquiries are sometimes unavoidable, planning ahead can help minimize their impact. Before applying for new credit, consider these best practices:

• Review your credit report for errors.
• Pay down revolving balances (if possible).
• Avoid multiple, unrelated applications in a short period.
• When you request a quote, apply or prequalify, get in the habit of asking lenders up front, “Will this be a hard inquiry? Which bureau(s)?”

Myths About Credit Checks

There are some misconceptions about credit checks and how they might impact your credit reports and scores.

Some common myths include:⁸

• Soft checks lower your score. Soft checks appear on your credit reports but are not factored into scores.
• A hard inquiry “ruins” your credit. While credit scores do drop slightly when a hard inquiry is performed, the impact is typically minimal.
• You can remove a legitimate inquiry just by asking. Generally, you cannot remove inquiries from your credit reports. However, if you notice an inquiry that you don’t recognize, it could signal possible fraud, and you should report it.
• Closing accounts removes inquiries. Inquiries are their own type of activity separate from payment history or account status. Therefore, they remain for up to two years regardless of whether they are tied to an open account or not.

Your “Before You Click Submit” Checklist

Hard inquiries are sometimes necessary to open a new credit card or line of credit, but some companies allow you to shop around or prequalify with a soft credit check.

Before you request a quote from a lender, review these questions:

• Is this a full application?
• Does the authorization mention a hard inquiry?
• Which bureau(s) are involved?
• Is there a prequalification option?

Make More Informed Credit Decisions

Hard and soft credit checks each serve an important purpose, but they affect your credit differently. Whether you’re comparing financing options or preparing to apply for new credit, understanding when each type of inquiry is used — and taking advantage of prequalification opportunities when available — can help you apply for financing with greater confidence while protecting your credit score. CareCredit’s soft-credit prequalification process lets you explore your financing options before committing to a full application, helping reduce uncertainty about the process.

Frequently Asked Questions About Soft Inquiries and Hard Inquiries

Do you still have questions about hard and soft credit checks? Here are the answers to some common questions about credit inquiries.

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Author Bio

Dawn Papandrea is a journalist with more than two decades of experience covering personal finance and consumer issues. She has written for leading financial publications and organizations, including U.S. News & World Report, Investopedia, Bankrate and others.