What’s the Difference Between a Hard and Soft Credit Check?

Frequently Asked Questions About Hard and Soft Credit Checks

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

Hard and soft credit checks can show similar information, but they can affect your credit score differently. Hard credit checks are typically tied to a formal application for credit, while soft credit checks are usually for informational or screening purposes and typically don’t affect your score.

What is a hard credit check?

A hard credit check (hard inquiry) most often occurs when someone officially applies for credit, rather than seeking pre-qualification. Hard credit checks could lower an individual’s credit score.

What can trigger a hard credit check?

Examples can include:

  • Loan applications
  • Credit card applications
  • Requests for credit limit increases
  • Applications for new lines of credit
  • New utility applications
  • Apartment rental applications
  • Collection agency skip tracing

How much can a hard credit check affect your credit score?

A hard credit check may affect your credit score by 5 points or fewer.

What is rate shopping, and how does it affect hard credit checks?

Rate shopping is comparing offers from multiple lenders. Some scoring models may treat multiple inquiries within a short window as a single inquiry to limit the impact on your credit score.

How long should I rate shop to limit the impact of credit checks?

Some scoring models consider all inquiries within 14 days as one inquiry. If you’re shopping for the best rate, concentrate your search within a two-week period.

What is a soft credit check?

A soft credit check (soft inquiry) is a credit review that typically doesn’t impact an individual’s credit score.

What situations might require a soft credit check?

  • Checking your own credit score
  • Pre-approved credit offers
  • Insurance applications
  • Account reviews by current creditors
  • Employment applications

How long do hard and soft inquiries stay on a credit report?

Both soft and hard inquiries typically stay on a person’s credit report for two years, but FICO® Scores generally only consider inquiries from the past 12 months.

How can I reduce the impact on my credit when shopping for a personal loan?

Consider lenders that let you check your eligibility or pre-qualify before applying. This can help you review potential offers without affecting your credit score.

Disclaimer: This content is provided for informational purposes only and does not constitute credit or financial advice. Credit scoring models vary, and the impact of a hard or soft inquiry on your credit score depends on your individual credit profile and the scoring model used. Point estimates are based on publicly available information and may not apply to all consumers. Eligibility checks or prequalification offers are not guarantees of approval, and all loan applications are subject to credit review, underwriting criteria, and applicable terms and conditions.

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To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.

* Applications submitted on this website may be funded by one of several lenders, including: FinWise Bank, a Utah-chartered bank, Member FDIC; Coastal Community Bank, Member FDIC; and LendingPoint, a licensed lender in certain states. Loan approval is not guaranteed. Actual loan offers and loan amounts, terms, and annual percentage rates ("APR") may vary based upon LendingPoint’s proprietary scoring and underwriting system’s review of your credit, financial condition, other factors, and supporting documents or information you provide. Origination or other fees up to 10% may apply depending upon your state of residence. Upon final underwriting approval to fund a loan, said funds are often sent via ACH the next non-holiday business day. Loans are offered from $1,000 to $36,500, at rates ranging from 7.99% to 35.99% APR, with terms from 24 to 72 months. Higher loan amounts may be available through select partners. Minimum loan amounts apply in Georgia, $3,500; Colorado, $3,001; and Hawaii, $2,000. For a well-qualified customer, a requested loan of $10,000 serviced by LendingPoint over a period of 48 months that has an APR of 26.59% with an origination fee of 10% may have a payment of $340.52 per month (actual terms and interest rates depend on credit history, income, and other factors). The total amount due under the loan terms is $16,345.12, and the loan disbursement amount is $10,000. The total amount due represents the full amount you will pay over the life of the loan if all payments are made as scheduled. In this example, the amount financed is $10,000, and the finance charge is $6,345.12, which includes a 10% origination fee. Customers may have the option to deduct the origination fee from the loan proceeds. If this option is selected, the amount disbursed will be less than the amount requested. For example, for a $10,000 loan with a 10% origination fee ($1,000), the amount disbursed would be $9,000.

* Applications submitted may be funded by one of several lenders including First Electronics Bank, a Utah-chartered bank, Member FDIC; Coastal Community Bank, Member FDIC; and LendingPoint, a licensed lender in certain states. Loan approval is not guaranteed. Minimum loan amounts apply in Georgia, $3,500; Colorado, $3,001; and Hawaii, $1,500. Upon final underwriting approval to fund a loan, said funds are often available the next non-holiday business day. Actual loan offers and loan amounts, terms and annual percentage rates (“APR”) may vary. Loans are offered from $500 to $10,000 (loan amount maximum based on MCC codes), at rates ranging from 7.99% to 35.99% APR, with terms from 24 to 48 months. For example, for a well-qualified customer, a $5,000 purchase will have a 90-day promotional period with no interest, a 3% fee, and $100 monthly payments. After the promotional period, a remaining balance will be a 24-month term loan, and $263.72 monthly payments with an overall APR of 26.54%.

**Minimum initial transaction of $1,000 in Alabama, Idaho and Iowa.

1. Alimony, child support, or separate maintenance income need not to be revealed if you do not wish to have it considered as a basis for repaying this obligation.

2. The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning FinWise Bank is the FDIC Consumer Response Center, 1100 Walnut Street, Box #11, Kansas City, MO 64106. The federal agency that administers compliance with this law concerning Coastal Community Bank is the Federal Reserve Consumer Help Center, P.O. Box 1200, Minneapolis, MN 55480. The federal agency that administers compliance with this law for LendingPoint is the Federal Trade Commission, Equal Credit Opportunity, Washington, DC 20580.

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