Credit Inquiries
a review of your credit report by a third party
Credit Inquiries Definition:
A credit inquiry is when a person or lender reviews your credit report to evaluate your creditworthiness. Inquiries occur for various reasons, such as applying for a loan, credit card, or rental agreement. They are categorized into two types, soft inquiries and hard inquiries, and each impacts your credit differently.
Soft Inquiries
A soft inquiry (or “soft pull”) happens when your credit is checked for non-lending purposes, such as reviewing your own report, pre-qualifying for offers, or during certain background checks by employers or landlords. Soft inquiries do not affect your credit score and are not visible to lenders reviewing your report.
Hard Inquiries
A hard inquiry (or “hard pull”) occurs when a lender checks your credit report as part of a formal application for a financial product, such as a mortgage, auto loan, or credit card. Hard inquiries can lower your score slightly and remain on your credit report for two years. Multiple hard inquiries in a short period can have a greater impact, especially if they are not related to rate shopping for the same type of loan.
Resources:
Frequently Asked Questions:
Does checking my own credit hurt my score?
No. Viewing your own report is a soft inquiry and will not affect your score.
How many points does a hard inquiry lower my score?
Usually 5 points or less, but the impact varies based on your overall credit profile.
Can I remove hard inquiries from my report?
Only inaccurate or unauthorized hard inquiries can be disputed and removed. Legitimate inquiries will remain for two years.
How can I limit the impact of hard inquiries?
Apply for credit only when needed and group rate-shopping applications within a short time frame (typically 14–45 days) to count as one inquiry for scoring purposes.
