Credit inquiries are an essential part of how lenders and other entities assess your financial reliability. However, not all credit inquiries affect your credit score. Understanding the difference between hard and soft pulls can help you manage your credit wisely and avoid unnecessary impacts on your credit score. Hereβs the truth about credit inquiries and how they work.
What Are Credit Inquiries?
A credit inquiry occurs when someone checks your credit report. This might be done by lenders, landlords, employers, or even yourself. Credit inquiries are categorized into two types:
- Hard Pulls (Hard Inquiries): These occur when a lender or creditor checks your credit report to make a lending decision.
- Soft Pulls (Soft Inquiries): These occur for non-lending purposes, such as background checks or prequalification offers.

Hard Pulls: What You Need to Know
A hard inquiry typically happens when you apply for a new line of credit, such as a credit card, mortgage, or auto loan. Hereβs what you need to know:
Key Features of Hard Pulls:
- Impact on Credit Score: Hard inquiries can lower your credit score by a few points, usually around 5 points or less.
- Duration on Credit Report: Hard inquiries remain on your credit report for up to 2 years but typically only affect your credit score for the first year. Soft inquiries, on the other hand, do not impact your credit score and are only visible to you.
- Purpose: Used by lenders to assess your creditworthiness.
“Hard inquiries show up on your credit reports for up to two years and can affect your credit score. While that impact is usually minimal and temporary, it’s important to understand when they happen, how they’ll impact you and why it’s best to keep them to a minimum”
π Source: Experian on Hard Inquiries
Examples of Hard Pulls:
- Applying for a mortgage or car loan.
- Applying for a credit card.
- Requesting a credit limit increase with some issuers.
How to Minimize Hard Pulls:
- Apply Only When Necessary: Limit applications to credit lines you truly need.
- Shop Smart for Rates: When rate shopping (e.g., for a mortgage or auto loan), multiple inquiries within a short time frame (typically 14-45 days) are treated as a single inquiry.
“When youβre rate shopping, you should be mindful of the number of hard inquiries on your credit report..”
π Source: TransUnion on Rate Shopping
Can You Remove Hard Inquiries?
If you notice an unauthorized hard inquiry on your credit report, take these steps immediately to dispute it:
Then add the following steps as a bullet list:
β Contact the Company That Made the Inquiry β Request clarification and ask them to remove the inquiry if it was made in error.
β Report and Document the Fraud β File a report with the Federal Trade Commission (FTC) at IdentityTheft.gov and keep records of all communications.
β Notify the Credit Bureaus β Inform Experian, Equifax, and TransUnion about the unauthorized inquiry.
β Place a Fraud Alert β Add a fraud alert to your credit report to prevent further unauthorized activity.
β Dispute the Inquiry with the Credit Bureaus β File a formal dispute with the credit bureaus to have the inquiry removed.
π Source: Credit Karma on Disputing Unauthorized Inquiries
Soft Pulls: What You Need to Know
Soft inquiries are more casual checks of your credit and do not impact your credit score. These checks are often done without your explicit permission.
Key Features of Soft Pulls:
- No Impact on Credit Score: Soft inquiries are not factored into your credit score.
- Purpose: Used for informational purposes, such as prequalification or background checks.
Examples of Soft Pulls:
- Checking your own credit report.
- Prequalification for a credit card or loan.
- Background checks by landlords or employers.
Why Soft Pulls Matter:
Soft pulls give you the freedom to monitor your credit or explore financial products without worrying about your credit score taking a hit.

π Quick Comparison: Hard vs. Soft Inquiries
Aspect | Hard Inquiries | Soft Inquiries |
---|---|---|
Purpose | Occur when you apply for new credit or loans | Occur during background checks or when you check your own credit |
Impact on Credit Score | May temporarily lower your credit score | Do not affect your credit score |
Visibility | Visible to lenders and can influence lending decisions | Only visible to you and do not impact lending decisions |
Duration on Report | Remain on your credit report for up to two years | May be recorded but do not affect your credit score |
π Sources: Experian, TransUnion
How to Manage Credit Inquiries Wisely
1. Monitor Your Credit Regularly
Check your credit report periodically to ensure all inquiries are legitimate. Use free tools or visit AnnualCreditReport.com for a free annual report from each bureau.
2. Limit Unnecessary Applications
Avoid applying for multiple credit cards or loans in a short period, as each hard inquiry can lower your score.
3. Use Pre-qualification Tools
Many lenders offer prequalification options that involve a soft pull. These allow you to gauge your chances of approval without affecting your credit score.
4. Time Applications Strategically
If you plan to apply for a major loan, avoid other credit applications in the months leading up to it to keep your credit profile as strong as possible.
Common Myths About Credit Inquiries
- Myth: Checking your own credit hurts your score.
- Truth: Checking your own credit report is a soft pull and has no impact on your score.
- Myth: All inquiries are created equal.
- Truth: Only hard inquiries affect your score, and their impact is temporary.
- Myth: Inquiries are the most significant factor in your credit score.
- Truth: Payment history and credit utilization are far more influential than inquiries.
Conclusion
Understanding the difference between hard and soft credit inquiries is crucial for managing your credit effectively. While hard pulls can have a temporary impact on your score, they are necessary for securing credit. Soft pulls, on the other hand, offer a worry-free way to monitor your credit and explore financial options. By managing your credit inquiries wisely, you can maintain a healthy credit profile and achieve your financial goals.