Key takeaways
- Soft inquiries, such as checking your own credit or prequalifying, do not affect your credit score.
- Hard inquiries come from applications for new credit and typically lower a FICO score by fewer than five points.
- Hard inquiries stay on your report for up to two years, but FICO only counts them for 12 months.
- Inquiry grouping for rate shopping mainly applies to mortgage, auto, and student loans, so prequalify for personal loans when possible.
- Dispute any hard inquiry you didn't authorize, since it may signal identity theft.
Every time someone looks at your credit report, the credit bureau records it as an inquiry. Some inquiries have no effect on your credit score at all, while others can lower it slightly for a while. Knowing the difference between a soft and a hard credit check helps you shop for a personal loan with confidence, avoid unnecessary score damage, and spot inquiries that shouldn't be there.
What is a credit inquiry?
A credit inquiry is a record that a person or company requested information from your credit file at Equifax, Experian, or TransUnion. Under the Fair Credit Reporting Act (FCRA), a business needs a permissible purpose to pull your report, such as reviewing an application you submitted, managing an account you already have, or screening you for a prescreened offer. The bureaus then classify each inquiry as soft or hard, and that classification determines whether scoring models count it.
What is a soft credit check?
A soft inquiry (or soft pull) happens when your credit is reviewed for a purpose other than a new credit application you initiated, or when a lender checks it only to give you an estimate. Soft inquiries do not affect your credit scores, and they're visible only to you when you view your own report. Lenders reviewing your file can't see them.
Common examples of soft inquiries:
- Checking your own credit report or score
- Prequalification or “check your rate” tools from lenders
- Prescreened credit card or loan offers you receive in the mail
- Account reviews by creditors you already do business with
- Many employment background checks (with your written permission)
- Some insurance quotes
What is a hard credit check?
A hard inquiry (or hard pull) happens when a lender reviews your credit to make a lending decision on an application you submitted. Because applying for new credit can signal added risk, scoring models may factor recent hard inquiries into your score.
Common examples of hard inquiries:
- Applying for a personal loan, installment loan, or auto loan
- Applying for a credit card or a credit limit increase (with some issuers)
- Applying for a mortgage or refinance
- Some apartment rental and utility applications, depending on the company
Soft vs. hard inquiries side by side
| Feature | Soft inquiry | Hard inquiry |
|---|---|---|
| Triggered by | Your own check, prequalification, prescreening, account review | An application for new credit |
| Affects credit score? | No | Can, usually by a small amount |
| Visible to other lenders? | No, only to you | Yes |
| How long it stays on your report | Varies; no scoring impact | Up to two years |
| How long FICO counts it | Never | 12 months |
| Your permission needed? | Not always | Yes, typically through your application |
How much does a hard inquiry hurt your score?
For most people, less than they fear. FICO has said a single hard inquiry typically lowers a score by fewer than five points. “New credit,” which includes inquiries and recently opened accounts, is one of the smaller categories in the FICO scoring formula, accounting for about 10% of the score. Payment history and amounts owed carry far more weight. Our guide to how credit scores affect loan rates explains those bigger factors.
That said, the effect depends on your profile:
- Thin files: If you have few accounts or a short history, each inquiry can carry more weight.
- Several inquiries in a short span: Multiple hard pulls for different types of credit can add up and may suggest to lenders that you're seeking a lot of new credit quickly.
- Time heals: FICO scores only consider inquiries from the past 12 months, and the inquiry drops off your report entirely after about two years.
Rate shopping and inquiry grouping
Scoring models recognize that comparing offers is smart. FICO groups multiple inquiries for mortgages, auto loans, and student loans made within a short window, 45 days in newer versions and 14 days in older ones, and counts them as a single inquiry. VantageScore models also group certain inquiries made within a short period.
Here's the catch: grouping rules are written around specific loan types, and personal loan inquiries may not be grouped the same way under every scoring model. The safer strategy for personal loans is to use soft-pull prequalification wherever it's offered and save hard pulls for the offer you actually intend to accept. Our guide on how to compare loan offers covers what to compare beyond the APR.
Credit checks when you use Lending Buddy
Lending Buddy is a free loan-connection service, not a lender, and doesn't make credit decisions. When you submit a request, lenders in our network may review it, and each lender decides whether to run a soft check, a hard check, or both at different stages. Many lenders start with a soft pull to determine whether they can make an offer and run a hard pull only once you move forward. Read each lender's disclosures so you know which type applies. All credit types can submit a request, but no lender approves everyone, and no legitimate lender can promise approval without reviewing your information in some way. Our eligibility page lists the basic requirements.
How to keep inquiries from hurting you
- Check your own credit first. You can get free credit reports from all three bureaus at AnnualCreditReport.com. Reviewing them is a soft inquiry.
- Prequalify before applying. Use soft-pull tools to see estimated offers.
- Apply with purpose. Submit full applications only for loans you're prepared to accept if approved.
- Space out unrelated applications. Avoid opening a credit card, financing furniture, and applying for a personal loan in the same month.
- Lift freezes deliberately. If you've frozen your credit, unfreeze it temporarily for the bureau your lender uses, then refreeze.
- Focus on the big factors. On-time payments and lower credit card balances do far more for your score than avoiding a single inquiry.
Common myths about credit checks
- Myth: Every inquiry lowers your score. Only hard inquiries can. Soft inquiries, including the dozens of prescreened offers some people receive, have no scoring impact.
- Myth: A hard inquiry will get you denied elsewhere. One or two recent inquiries rarely decide an application on their own. Lenders care much more about payment history, income, and existing debt.
- Myth: Closing the loan removes the inquiry. The inquiry stays on your report for its normal period whether or not you accept, decline, or later pay off the loan.
- Myth: Paying a service can erase legitimate inquiries. Accurate inquiries can't be removed early. Companies that charge to “delete” them are making promises they can't keep; only inaccurate or unauthorized items can be disputed.
- Myth: Prequalification is an approval. A soft-pull estimate is not a final offer. The lender may still verify income and run a hard pull before approving, and the final rate or amount can change.
What to do about inquiries you don't recognize
A hard inquiry you didn't authorize can be a sign of identity theft or an error. First, check whether it matches a store card, car dealer, or lender you spoke with, since the inquiry may appear under a parent company or bank name. If you still don't recognize it:
- Contact the company listed to ask why it pulled your report.
- File a dispute with the credit bureau reporting it; bureaus generally must investigate disputes within about 30 days.
- If you suspect identity theft, report it at IdentityTheft.gov from the Federal Trade Commission and consider a fraud alert or credit freeze.
Unrecognized inquiries are worth acting on quickly, because they can be the first sign that someone is applying for credit in your name. Read our responsible lending page for more on how we approach borrower protection.
The bottom line
Soft credit checks never affect your score; hard checks can, usually by a few points for up to 12 months in FICO's calculation. That small, temporary dip shouldn't stop you from borrowing when you need to, but it's a good reason to prequalify first, apply selectively, and watch your report for inquiries you didn't authorize. When you're ready to see whether a lender can offer you a personal loan, Apply Now through Lending Buddy.
Frequently Asked Questions
Does checking my own credit score lower it?
No. Checking your own credit report or score is a soft inquiry, and soft inquiries never affect your credit scores. You can check as often as you like through your bank, a credit monitoring service, or the free reports available at AnnualCreditReport.com. Reviewing your credit regularly is a good habit that helps you catch errors and fraud early.
How long does a hard inquiry stay on my credit report?
A hard inquiry generally remains on your credit report for up to two years. FICO scores only factor in inquiries from the past 12 months, so the impact on your score usually fades well before the inquiry disappears. For most people, the effect of a single inquiry is small, often fewer than five points.
Does Lending Buddy run a hard credit check?
Lending Buddy is a connection service, not a lender, and doesn't make credit decisions. Lenders in our network that review your request decide which type of credit check to use. Many start with a soft pull and run a hard pull only if you move forward with an offer. Each lender's disclosures should explain which type of check applies to you.
Will applying with several personal loan lenders hurt my credit?
It can if each one runs a hard pull, because personal loan inquiries may not be grouped together under every scoring model the way mortgage or auto loan inquiries are. To limit the impact, use soft-pull prequalification to compare estimated offers first, then complete a full application only with the lender whose offer you plan to accept.
