The Impact of Credit Inquiries on Your Credit Score

A soft pull, or soft inquiry, happens when someone you authorize checks your credit report. A hard pull, on the other hand, is when you apply for a loan or credit card. It does impact your credit score.

Soft Inquiries vs. Hard Inquiries

A credit inquiry happens any time someone checks your credit report. There are two kinds, and only one of them affects your score.

• Soft inquiries happen when you check your own credit, or when someone checks it without you applying for something — like a lender pre-qualifying you for an offer, or a landlord reviewing your application. Soft inquiries never affect your credit score, no matter how many you have.
• Hard inquiries happen when you apply for new credit — a loan, a credit card, a mortgage. Because a hard inquiry means you’re actively seeking new credit, it can have a small, temporary effect on your score.

How Credit Inquiries Affect Your Score

A single hard inquiry typically costs just a few points, and the effect fades the longer you go without applying for new credit.

• Hard Inquiry Timeline. Here’s the timeline to know: a hard inquiry stops affecting your score after 12 months, even though it stays visible on your credit report for up to 24 months. So if you’re wondering why an old inquiry is still showing up on your report, that’s normal; it just isn’t hurting your score anymore.
• Rate Shopping. One thing that trips people up is something called rate shopping. If you’re comparing mortgage or auto loan offers from multiple lenders, applying to several within a short window (typically 14 to 45 days, depending on the scoring model) counts as a single inquiry, not several. That means comparing rates to find the best deal won’t cost you extra points, so there’s no need to hold back from shopping around.

The bigger-picture takeaway: one hard inquiry here and there is nothing to worry about. The effect only adds up if you’re applying for a lot of new credit in a short period, which can signal to lenders that you’re taking on more debt than usual.

Learn more here: How to use rate shopping to minimize inquiries.

Monitor Your Credit Report

You can see soft and hard inquiries on your credit report. To check what inquiries have been made, you’ll need to:

• Check your reports from all three credit bureaus.
• Review your credit reports regularly.
• It’s free to do so and will help prevent identity theft.

You can also keep your credit score high by catching and reporting incorrect information.

Do One Thing: Check your credit reports at all three bureaus regularly.