Hard vs Soft Credit Inquiries: What Counts
Learn the difference between hard and soft credit inquiries, how long they stay on your report, and the rate-shopping window. Know what affects your score.
When a lender or creditor checks your credit report, that check is recorded as an inquiry. Inquiries fall into two categories: hard inquiries (also called hard pulls) and soft inquiries (soft pulls). The distinction matters because hard inquiries can affect your credit scores, while soft inquiries do not. This page explains the difference, how long each stays on your report, and the rate-shopping window that allows multiple applications for the same type of loan to count as one inquiry.
What Is a Hard Inquiry?
A hard inquiry occurs when a lender checks your credit report as part of a decision on an application you have made. Examples include applying for a credit card, an auto loan, a mortgage, or a personal loan. Hard inquiries are visible to other lenders who review your credit report, and they can lower your credit scores by a few points. They remain on your credit report for two years, but their impact on scores typically fades within a year.
What Is a Soft Inquiry?
A soft inquiry occurs when a check of your credit report is not tied to an application for credit. Examples include checking your own credit score, a pre-approval offer (where the lender checks without you applying), or a background check by an employer. Soft inquiries are not visible to lenders who review your report, and they have no effect on your credit scores. They may appear on your own copy of your credit report, but only you can see them.
How Inquiries Affect Your Credit Scores
Hard inquiries can affect your credit scores, but the effect is usually small. According to FICO, a hard inquiry can knock a few points off your score, and the impact is typically greater for people who have a short credit history or few accounts. The effect diminishes over time, and inquiries older than one year generally have no impact on FICO scores. VantageScore, another scoring model, treats inquiries similarly.
Soft inquiries have no effect on your credit scores. Checking your own credit report or score is a soft inquiry and will not lower your score.
The Rate-Shopping Window
When you apply for multiple loans of the same type (such as an auto loan or a mortgage) within a short period, scoring models treat them as a single inquiry for scoring purposes. This is called rate shopping or price comparison. The window is typically 14 to 45 days, depending on the scoring model. For example, FICO counts multiple inquiries for an auto loan within 45 days as one inquiry. VantageScore uses a 14-day window. This allows you to compare rates without worrying that each application will hurt your score.
Which Checks Are Which?
| Type of Check | Example | Visible to Lenders? | Affects Score? | When It Does NOT Apply |
|---|---|---|---|---|
| Hard inquiry | Applying for a credit card | Yes | Yes | If you are just checking your own credit |
| Soft inquiry | Checking your own credit score | No | No | If you are applying for a loan (that’s a hard inquiry) |
| Hard inquiry | Applying for a mortgage | Yes | Yes | If you are pre-qualified (that may be a soft inquiry) |
| Soft inquiry | Pre-approval offer | No | No | If you actually apply (that becomes a hard inquiry) |
| Hard inquiry | Applying for an auto loan | Yes | Yes | If you are rate shopping within the window (counts as one) |
The Most Common Mistake: Believing Every Check Hurts
The most common mistake people make is assuming that any check of their credit report will lower their score. This belief leads to two harmful behaviors: avoiding checking their own credit (which is a soft inquiry and harmless) and avoiding rate shopping for loans (which can be done without multiple hard inquiries). The misunderstanding arises because the term “credit check” is used loosely. People hear that a lender pulled their credit and assume that every pull is the same. But the law and the credit reporting system distinguish between inquiries that are initiated by you for credit and those that are not. The Fair Credit Reporting Act (FCRA), codified at 15 U.S.C. Sec. 1681b, governs who can access your credit report and for what purpose. It defines permissible purposes, and a hard inquiry is one that falls under a permissible purpose related to a credit transaction. A soft inquiry, such as a promotional inquiry or a check by you, is also permissible but does not involve a credit decision. The scoring models then treat them differently.
Another common mistake is worrying about inquiries that are not even visible to lenders. For example, many people are alarmed to see a “soft inquiry” on their credit report from a company they never contacted. These are often from pre-screening or account reviews. They have no effect on your score and are not visible to other lenders, so they are not a cause for concern.
How Long Do Inquiries Stay?
Hard inquiries stay on your credit report for two years from the date of the inquiry. Soft inquiries may also appear on your report, but they are only visible to you and typically remain for up to two years as well. The impact of a hard inquiry on your score is temporary; most scoring models ignore inquiries older than one year. If you are applying for a mortgage, lenders may see all inquiries from the past two years, but they will also see the rate-shopping window and may not penalize you for multiple inquiries within that window.
Legal Context: The Fair Credit Reporting Act
The FCRA (15 U.S.C. Sec. 1681b) outlines the permissible purposes for which a consumer reporting agency may furnish a credit report. A hard inquiry is allowed when you apply for credit, insurance, or employment, or for other legitimate business needs. A soft inquiry can occur without your application, such as for pre-approved offers or account reviews. The FCRA also gives you the right to obtain a free copy of your credit report from each of the three major credit bureaus once every 12 months at AnnualCreditReport.com. Checking your own credit report is a soft inquiry and does not affect your score.
State Variations
Some states have laws that affect how long inquiries stay on your report or how they are treated, but the federal FCRA sets the baseline. For example, some states have laws that restrict the use of credit reports for employment purposes, but those do not change the inquiry mechanics. If you are concerned about a specific situation, consult the FCRA and your state’s consumer protection laws.
When to Get Legal Help
If you believe an inquiry was made without your permission or is inaccurate, you have the right to dispute it with the credit bureau and with the company that made the inquiry. If the dispute does not resolve the issue, or if you are facing a lawsuit related to an inquiry, you may need to consult an attorney. The FCRA provides for damages for willful or negligent noncompliance, but pursuing a claim is complex and legal advice is recommended.
Summary
Hard inquiries are tied to credit applications and can affect your scores; soft inquiries are not and do not. Hard inquiries stay for two years but affect scores for about a year. Rate shopping within a 14- to 45-day window counts as one inquiry. Checking your own credit is always a soft inquiry and safe. The most common mistake is avoiding any credit check out of fear, which can prevent you from monitoring your credit and shopping for the best loan terms.
Common questions
Does checking my own credit score hurt my credit?
No. Checking your own credit score or report is a soft inquiry and does not affect your credit scores. You can check your credit as often as you like without penalty.
How long do hard inquiries stay on my credit report?
Hard inquiries stay on your credit report for two years. However, they only affect your credit scores for about one year, after which they are typically ignored by scoring models.
What is the rate shopping window?
The rate shopping window is a period during which multiple inquiries for the same type of loan (such as auto or mortgage) are counted as a single inquiry for scoring purposes. The window is typically 14 to 45 days, depending on the scoring model.
Do pre-approval offers affect my credit?
No. Pre-approval offers are usually based on a soft inquiry, which does not affect your credit score. However, if you actually apply for the offer, that will result in a hard inquiry.
Can I dispute a hard inquiry I didn't authorize?
Yes. If you see a hard inquiry that you did not authorize, you can dispute it with the credit bureau and the company that made the inquiry. The Fair Credit Reporting Act (15 U.S.C. Sec. 1681b) requires that inquiries be made for a permissible purpose. If the inquiry is unauthorized, you can request it be removed.
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