What’s the difference between a hard and soft credit check?

By Sabrina Karl

Checking your credit report has never been easier. But as Americans begin to review this information more regularly, questions pop up about what they see there, and a common surprise is that the mere application for credit can ding your score.

Credit inquiries come in two flavors: hard pulls and soft pulls. Only hard inquiries are recorded in your report, and are therefore the only ones you need to worry about. They’re generally performed by financial institutions when you request credit, such as applying for a mortgage, any type of loan (auto, student, personal), or a credit card. Applying to rent an apartment can also appear as a hard pull.

A single hard inquiry on your report will typically have little to no impact. Though they stay on your report for two years, their impact fades over time, and having only one is generally considered negligible.

But an issue arises if you apply for credit multiple times within a short period, such as applying for multiple credit cards at once, or applying for a card close to the same time as applying for a loan. Accumulating multiple hard checks signals that you might be a higher credit risk, and your score could drop as a result.

Meanwhile, other companies are checking your report, too. But since they aren’t extending credit, their checks are classified as soft inquiries, which don’t show up on your report or affect your score. Soft inquiries are most commonly made by credit card companies looking to extend a card offer, insurance companies preparing a quote, or even a prospective employer or someone running a background check.

If you’re ever unsure if an application you’re submitting will trigger a hard pull, simply ask the company involved to indicate the type of inquiry they’ll be making.