Credit Inquiry

There are two main types of credit inquiry. A hard inquiry, sometimes called a hard search or hard check, happens when a person applies for credit, such as a loan, mortgage or credit card. It is recorded on the credit report, is visible to other lenders and may slightly lower a credit score for a period of time.

A soft inquiry, or soft search, happens when a person checks their own credit report, when a lender checks eligibility before a formal application, or when an existing lender reviews an account. Soft inquiries do not affect credit scores and are not visible to other lenders.

For example, comparing loan offers using a lender's eligibility checker typically involves a soft inquiry, while submitting a full application usually triggers a hard inquiry.

A single hard inquiry usually has only a small effect. However, many hard inquiries in a short period can suggest that someone is in financial difficulty or seeking a lot of credit, which may concern lenders. Credit scoring systems often treat several inquiries for the same type of loan within a short window, such as shopping around for a mortgage, as a single inquiry.