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

> Hard checks come from applying for credit and can cost a few points; soft checks never affect your score.

Source: https://www.walletprep.com/learn/hard-vs-soft-credit-check/ · Updated 2026-10-04 · Credit

A hard credit check happens when you apply for credit, and it can lower your score by a few points for up to a year. A soft check, like checking your own credit or a prequalified offer, never affects your score.

## Key facts
- **Hard inquiries come from applications.** The CFPB describes hard inquiries as checks by lenders after you apply for credit. They can affect your score because most scoring models look at how recently and how often you apply, and other lenders can see them.
- **Soft inquiries never count.** Soft inquiries include your own checks, reviews of your existing accounts, prescreened offers and employment screening. They don't affect your scores and only you see them on your report.
- **The effect is small and short.** FICO says one more inquiry takes fewer than 5 points off for most people. Hard inquiries stay on your report for up to 2 years, but they only affect FICO scores for 1 year.
- **Shopping for one loan counts once.** FICO treats several mortgage, auto or student loan inquiries within a 14 to 45 day window as one, and ignores them for the 30 days before scoring.

## What counts as a hard check
A hard check, or hard inquiry, happens when you ask for new credit and the lender pulls your report to decide. Applying for a credit card, car loan, mortgage, student loan or personal loan are the usual cases.
The inquiry shows on your report to anyone who later pulls it. Scoring models read a burst of applications as a sign that you might be taking on a lot of new debt, which is why inquiries carry a little weight. FICO puts new credit at about 10% of the score, and inquiries are only part of that.

## What counts as a soft check
A soft check is any look at your credit that isn't tied to a new credit application. The CFPB lists your own requests for your reports, reviews of your existing accounts by lenders or insurers, prescreened offers you didn't ask for and employment screening.
Soft checks don't change your score. They show up only on the copy of your report that you see, not on the one lenders buy. You can check your own reports and scores as often as you want without any cost to your score.

## How much a hard check costs
For most people, FICO says, one additional inquiry takes fewer than 5 points off a FICO score. It can matter more if you have few accounts or a short history, since each piece of information carries more weight.
The effect fades. Inquiries count in FICO scores for 12 months and drop off your report after 2 years. Paying on time and keeping balances low matter far more.

## Rate shopping without the penalty
Shopping around is how you find the lowest rate, and scoring models allow for it. The CFPB says inquiries for the same kind of loan made within 14 to 45 days of each other generally count as one. FICO says the window is 14 days on older score versions and 45 days on newer ones, and that it ignores these inquiries for the 30 days before a score is figured.
Shopping for two different kinds of loans, like a mortgage and a car loan, counts as two inquiries. Credit card applications fall outside FICO's grouping, so each one can count on its own.

## If you see a hard inquiry you don't recognize
Look up the company name first, since a car dealer may send your application to several lenders. If you never applied with that company, dispute the inquiry with the credit bureau and check for other accounts you didn't open.
A credit freeze stops new lenders from pulling your report unless you lift it, which blocks most fraudulent applications. Freezing and unfreezing is free at each bureau.

## A worked example: three car loan quotes in 10 days
Kai needs a $25,000 car loan over 5 years. Within 10 days she applies at the dealer, her bank and a credit union. Assume quotes of 8%, 7.25% and 6.5%.

- Applications in 10 days: 3
- Counted by FICO as inquiries: 1
- Interest at 8%, 60 months: $5,415
- Interest at 6.5%, 60 months: −$4,349
- Saved by shopping: = $1,066

1. At 8%, 60 payments of $506.91 cost $5,415 in interest. At 7.25% it is $4,879, and at 6.5%, 60 payments of $489.16 cost $4,349.
2. Taking the lowest quote over the highest saves $5,415 − $4,349 = $1,066 in interest.
3. All three applications came within 10 days, so FICO counts them as one inquiry, worth fewer than 5 points for most people.

## Common mistakes
- **Skipping rate shopping out of fear.** Taking the first loan offer to protect a few points can cost far more in interest. In Kai's case, one inquiry was worth $1,066.
- **Spreading applications over months.** Loan quotes spread over several months can count as separate inquiries. Gather your documents first, then apply everywhere within 2 weeks.
- **Opening store cards at checkout.** A store card offer at the register is a credit application and a hard inquiry. Several in a year add up, and each one is a new account to manage.

## Questions people ask
### Does a soft credit check affect my score?
No. Soft checks, including your own checks, prescreened offers and account reviews by lenders you already have, never change your score, and other lenders can't see them.

### Does prequalifying for a loan hurt my credit?
Usually not. Prequalification typically uses a soft check. The hard inquiry comes when you formally apply. Ask the lender which one they use before you agree.

### Can I remove a hard inquiry from my credit report?
Only if it's wrong. If you never applied with that lender, dispute it with the credit bureau that shows it. Accurate inquiries stay up to 2 years but stop counting in FICO scores after 1.

### Is a rental application a hard or soft check?
It depends on how the landlord or screening company pulls your report. Ask before you apply. Either way, a single check has a small effect compared with paying on time.

## Do this today
Pull your free credit reports and read the inquiries section on each. Write down any hard inquiry you don't recognize and dispute it with that bureau. If you aren't applying for anything soon, freeze your credit at all three.

## Sources
- [CFPB: What is a credit inquiry?](https://www.consumerfinance.gov/ask-cfpb/what-is-a-credit-inquiry-en-1317/)
- [CFPB: Does requesting my credit report hurt my credit score?](https://www.consumerfinance.gov/ask-cfpb/does-requesting-my-credit-report-hurt-my-credit-score-en-1229/)
- [CFPB: How will shopping for an auto loan affect my credit?](https://www.consumerfinance.gov/ask-cfpb/how-will-shopping-for-an-auto-loan-affect-my-credit-en-763/)
- [myFICO: Credit checks and inquiries](https://www.myfico.com/credit-education/credit-reports/does-checking-credit-score-lower-it)
- [CFPB: Understand your credit score](https://www.consumerfinance.gov/consumer-tools/credit-reports-and-scores/understand-your-credit-score/)
- [FTC: Credit freezes and fraud alerts](https://consumer.ftc.gov/articles/credit-freezes-and-fraud-alerts)

_General education, not personalized financial, tax or legal advice. Figures are examples. Check current rates and limits before you act._