Credit Inquiries: Hard vs. Soft and What They Mean for Your Loan
| Hard inquiry | Usually after you apply for credit; can affect your score |
|---|---|
| Soft inquiry | Own checks, account reviews, prescreening; no score effect |
| Who sees hard inquiries | Anyone who pulls your report |
| Who sees soft inquiries | Only you |
| How long listed | Bureaus generally list inquiries for about 2 years |
| Auto/mortgage shopping | Inquiries within 14–45 days generally count as one |
What is a credit inquiry?
Every time someone requests your credit report from a credit bureau, the bureau records it as an inquiry. That record shows who looked and when. Inquiries are a normal part of having credit, and seeing them on your report isn't a bad sign by itself.
There are two kinds, and they work very differently. The Consumer Financial Protection Bureau explains that hard inquiries can affect your credit score, while soft inquiries do not. Knowing which is which helps you shop for a loan without worrying about every check.
Hard vs. soft inquiry: side by side
| Hard inquiry | Soft inquiry | |
|---|---|---|
| What triggers it | A lender reviewing your file after you apply for credit | Checking your own report, existing-account reviews, prescreened offers, employment screening |
| Effect on credit scores | Can affect your score | Does not affect your scores |
| Who can see it | You and anyone who pulls your report | Only you |
| Your permission | Usually part of your application | Often happens without you applying |
| Examples | Credit card, mortgage, auto loan or personal loan applications | Viewing your free report, a card issuer's periodic review, "you're prequalified" mail |
Scoring models look at how recently and how often you've applied for credit, which is why several hard inquiries in a short time can matter more than one.
Which loan steps trigger each type
- Prequalification or checking your rate: many lenders use a soft inquiry at this stage. Look for wording on the lender's site about whether checking offers affects your score. See how to prequalify for a personal loan.
- Full application: lenders that use the major bureaus often do a hard inquiry when you formally apply.
- Alternative credit data: many lenders that offer smaller loans focus on income and bank activity, and some check specialty or alternative credit databases instead of pulling a traditional report from Experian, Equifax or TransUnion. Each lender's disclosures explain what it checks.
- After you have the loan: your lender may run periodic account reviews, which are soft inquiries.
Through Zebra Finance, you fill out one form, and lenders in our network that serve your state review it and may verify your information. You'll see any lender's terms before you sign. See if you qualify in about 3 minutes.
Is a personal loan a hard inquiry?
Applying for a personal loan with a lender that uses the major bureaus usually results in a hard inquiry. Checking your rate first, when the lender offers prequalification, is often a soft inquiry. That's why prequalifying is a smart first step: you can compare likely terms before committing to a full application.
One inquiry is a small part of your overall credit picture. Payment history and how much of your available credit you use tend to matter more over time. See what credit score you need for a personal loan.
How long inquiries stay on your report
Credit bureaus generally list inquiries on your report for about two years. Their effect on a score, when there is one, tends to be strongest when the inquiry is recent and fades as time passes. Soft inquiries appear only on the version of the report you see.
For auto loans and mortgages, the CFPB says that depending on the scoring model, multiple lender inquiries within a span of about 14 to 45 days generally count as a single inquiry. So if you're shopping for one of those, keep your comparisons within a short window.
What is an account review inquiry?
An "account review" inquiry shows up when a company you already have an account with checks your report, for example a credit card issuer reviewing your credit line. It's a soft inquiry, so it doesn't affect your score and other lenders don't see it.
Credit inquiries letter of explanation
Some lenders, especially mortgage lenders, ask you to explain recent inquiries in a short letter. Keep it simple and factual:
- List each inquiry's date and company.
- Say what each one was for, such as shopping for a car loan, and whether you opened an account.
- If you didn't recognize an inquiry, say so and note that you're looking into it.
If you see a hard inquiry you didn't authorize, contact the company that made it and the credit bureau listing it to ask about it.
Ways to keep inquiries in check while you borrow
- Prequalify where you can before submitting full applications.
- Use one form to reach multiple lenders instead of applying separately at site after site.
- Space out applications for unrelated credit, like a new card and a loan.
- Check your own report; it's a soft inquiry and never hurts your score.
Zebra Finance is a free loan-matching service, not a lender. One short form reaches lenders in our network for requests from about $100 to $5,000, and all credit types can apply. See if you qualify — it takes about 3 minutes. Start your free request. Learn more about loans and your credit score.
Frequently asked questions
What are credit inquiries?
Credit inquiries are records of requests to see your credit report. Hard inquiries usually come from lenders reviewing an application you made and can affect your score. Soft inquiries come from things like checking your own report, existing-account reviews and prescreened offers, and they do not affect your scores. Only you can see soft inquiries.
Does a soft inquiry hurt your credit?
No. According to the CFPB, soft inquiries do not affect your credit scores, and only you can see them on your report. Checking your own credit, a lender's review of an existing account and prescreened offers are common examples. You can check your own report as often as you like.
How many points does a hard inquiry take off?
It varies by person and scoring model, and there's no fixed number. Scoring models consider how recently and how often you've applied for credit, so one inquiry usually matters less than several in a short time. Payment history and credit use typically carry more weight over the long run.
How long does a hard inquiry stay on your credit report?
Credit bureaus generally list hard inquiries for about two years. Any effect on your score tends to be largest while the inquiry is recent and fades over time. Soft inquiries are shown only on your own copy of your report and don't affect your score.
Is a personal loan a hard inquiry?
A full personal loan application with a lender that uses the major credit bureaus usually creates a hard inquiry. Many lenders let you check your rate first with a soft inquiry. Some lenders that make smaller loans use alternative credit data instead of a traditional bureau report; their disclosures explain what they check.
Can I remove a hard inquiry from my credit report?
An accurate inquiry that you authorized generally stays on your report for its normal listing period. If you see an inquiry you don't recognize or didn't authorize, contact the company that made it and the credit bureau that lists it to ask about it and request a correction if it's an error.