Soft credit inquiry vs. hard inquiry: What’s the difference?

The primary difference between a hard credit inquiry and a soft credit inquiry is how they impact credit scores. A hard credit inquiry might temporarily lower credit scores. A soft credit inquiry doesn’t.

And because checking your own credit involves a soft inquiry, doing so won’t hurt your credit.

What you’ll learn:

• Soft credit inquiries, sometimes called soft pulls or soft checks, don’t impact your credit scores.

• Hard credit inquiries, sometimes called hard pulls or hard checks, may have a temporary negative effect on credit scores.

• Soft credit inquiries can happen when you check your own credit scores or when you get pre-qualified or pre-approved for a credit card.

• Hard credit inquiries are typically tied to a specific credit application, such as applying for a credit card or auto loan.

A soft credit inquiry, also referred to as a soft check or a soft pull, happens when you, an authorized individual or an organization reviews your credit file. Soft credit inquiries reveal your credit reports and credit scores, which can provide a snapshot of how well you’re managing your finances. Soft inquiries don’t impact credit scores.

This type of credit check commonly occurs when your credit reports are reviewed for things like a background check or pre-approval offer. They might also occur when you check your credit yourself.

Some examples of what might trigger soft credit inquiries include:

• Viewing your own credit reports and scores

• Opening a bank account

• A potential employer running a background credit check

• Checking for pre-approved credit card offers

• Pre-qualifying for an auto loan or a credit card

• Getting an insurance quote

A hard credit inquiry, also known as a hard credit check or a hard pull, happens when a lender checks your credit after you apply for a loan. This type of credit inquiry can decrease credit scores—usually by just a few points. This is because credit-scoring models generally look at how recently and how often you’ve applied for credit. 

Hard inquiries may stay on your credit reports for up to two years. But hard inquiries that are more than a year old might not affect your scores.

Some examples of what might trigger hard credit inquiries include:

• Applying for a credit card

• Applying for an auto loan

• Applying for a personal loan

• Applying for a mortgage or to rent an apartment

• Opening accounts for services like phone, cable or internet

• Requesting a credit limit increase, depending on the lender’s policies

When lenders are evaluating your credit risk, one of the factors that they’ll look at is the number of hard inquiries on your credit report. If you apply for many credit products in a short period of time, lenders may view this as an indication that you may be a greater risk than other borrowers. 

While one or two inquiries may not cause a problem, having several on your credit reports could have a negative impact on your ability to qualify for financing or result in higher rates if you’re approved.

Because hard inquiries impact your credit, you may want to limit them where possible. Here are some tips to manage the number of hard pulls on your credit:

Before you apply for credit, checking for pre-approved offers can help you compare options and find the right fit. With pre-approval from Capital One, you can answer a few questions to find out whether you’re eligible for cards. The process won’t harm your credit because it uses a soft inquiry.

“Credit scoring formulas look at your recent credit activity as a signal of your need for credit,” the Consumer Financial Protection Bureau (CFPB) says. “If you apply for a lot of credit over a short period of time, it may appear to lenders that your economic circumstances have changed negatively.”

When you apply for some types of credit, each application could result in a hard inquiry. But that may not always be true for mortgages and auto loans. Shopping for auto or home financing over a short amount of time—14 to 45 days, according to the CFPB—could be counted as a single inquiry.

Regularly checking your credit reports can help you stay on top of factors that impact your credit, including hard inquiries. You can get free copies of your credit reports once a year from each of the three major credit bureaus by visiting AnnualCreditReport.com.

CreditWise from Capital One is another easy way to monitor your credit. With CreditWise, you can stay on top of your credit score and credit report for free—even if you’re not a Capital One cardholder. And with the CreditWise Credit Simulator, you can explore the potential impact of your financial decisions, including applying for a credit card, before you make them.

Checking your own credit is an example of a soft inquiry. And soft inquiries don’t impact your credit scores. Hard inquiries, on the other hand, happen when a lender checks your credit report after you apply for credit. And because hard inquiries affect your scores, the CFPB says you should apply only for the credit you need.

If you’re looking for a new credit card, you can see whether you’re pre-approved for Capital One credit cards without hurting your credit.

New to credit or looking for your next credit card?

• Check for pre-approval offers with no risk to your credit score.

• Earn unlimited 1.5% cash back on every purchase, every day, with Quicksilver.

• Explore Capital One’s credit cards for building credit with responsible use.