Hard inquiry: What does it mean for your credit score?

A hard inquiry, also known as a hard pull, occurs when a lender requests your full credit report to determine if you qualify for a loan and what your interest rate will be. Hard inquiries provide access to your full credit history and require your permission. Hard inquiries also get listed on your credit report and can impact your credit score. Typical hard inquiries include applications for credit cards, auto loans, mortgages, student loans, and personal loans.

A soft inquiry, also known as a soft pull, is a credit check that shows limited information. Unlike hard inquiries, soft inquiries can be done without your permission. And while they’re visible to you, they won’t show up on the credit report that lenders see during a hard pull—and they don’t impact your credit score. Examples of soft inquiries include weekly free credit reports, prequalifying checks for credit cards or loans, and credit checks from landlords and employers. 

Hard inquiries will have an impact on your credit report for two years. They can also have a small, negative impact on your credit score (aka FICO score) that may last anywhere from a few months to one year. The size of the impact depends on your overall credit health and the credit bureau, but it’s possible for one hard inquiry to cause a score to drop five to 10 points. 

Applications for new credit account for about 10 percent of your credit score, so they’re less important than payment history and credit utilization. Applying for credit is the first step to building credit, but applying for several different types of loans during a short period of time can look risky to lenders. 

Not all hard inquiries are the same. Depending on what type of loan the inquiry was for, it may affect your credit score differently.

Car loans, student loans, and mortgages 

If multiple inquiries for the same type of loan—whether it’s a car loan, student loan, or mortgage—appear within a certain time period (14 days for some credit bureaus, 45 days for others), they can be treated as one inquiry. Additionally, you may have a 30-day grace period before an inquiry for a mortgage or auto loan shows up on your credit report. 

Both of these exceptions are designed to allow you to shop around for the best interest rates on important, long-term loans. Different lenders can follow different formulas, so try to keep your shopping period under two weeks.

One thing to note about shopping for a home loan: While lenders for most types of loans will only pull your credit report from one of the three major credit bureaus (Equifax, Experian, or TransUnion), mortgage lenders will check all three.

Credit cards

Unlike car loans, student loans, and mortgages, credit cards do not come with a shopping period. Applying for multiple credit cards during a short period of time can have a negative impact, so make sure you do your research before applying for a new credit card.

Credit checks are part of life. Here’s how to keep them from dragging down your score.

1. Only apply for credit that you actually need—and think you can get. 

To keep your credit score high, keep your credit checks low. Research credit cards and loans ahead of time, and get pre-approved for loans and credit cards, if possible. Getting pre-approved usually involves a soft check and reduces the risk of applying for credit. 

If you can’t get pre-approved, you can still research the range of credit scores that a potential lender will accept. Avoid applying for extra credit cards just because they offer exciting rewards—they often aren’t worth it.

2. Plan ahead. 

If you know you’re going to apply for an important loan in the near future, hold off on other applications for a few months to keep your credit score high.

3. Monitor your credit report. 

If you notice any hard inquiries that look incorrect, you can dispute them with the credit bureau. Unauthorized hard inquiries can also be a sign of identity theft—another reason to keep on top of your credit report. Understanding your credit score will also give you a better idea of the impact a hard inquiry will have (if your score is high, not much) and whether your loan application will be approved.

4. Ask for a soft check. 

A hard inquiry is inevitable when taking out a loan. But for some other credit checks—the kind your landlord, employer, or utilities company may perform—a soft inquiry can suffice. Ask the company or individual what kind of inquiry they’re planning to make as they may accept a soft inquiry.

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