Image
Soft vs. Hard Credit Checks
When a company checks your credit, it's either a soft credit check or a hard credit check. A soft credit check won't affect your score at all, while a hard credit check can cause a temporary dip.
Understanding how each one works can help you make smarter decisions when applying for loans, renting an apartment, or shopping for the best rates.
Key takeaways
- Soft credit checks don't affect your score, no matter how many you have.
- Hard credit checks can lower your score.
- Only hard inquiries are visible to lenders.
- Several hard inquiries in a short window can signal risk to lenders.
What is a soft credit check?
A soft credit check is a limited review of your credit that can happen with or without your knowledge.
Examples when a soft credit check happens
- Credit card offers
- Pre-approved loan offers
- Insurance quotes
- Background checks
You can also check your own credit score through services like Credit Karma, NerdWallet, or Credit Sesame. This counts as a soft pull, too.
How does a soft credit check affect your credit score?
It doesn't. Soft credit checks can appear on your personal credit report for two years, but only you can see them.
What is a hard credit check?
A hard credit check happens when you formally apply for a loan or line of credit. The lender reviews your full credit report to decide whether to approve your application.
Hard credit inquiries can temporarily lower your score. They stay on your credit report for two years, and any lender who pulls your credit can see them.
Examples when a hard credit check happens
- Bank loans
- Credit cards
- Car loans
- Student loans
- Mortgages
How many hard credit inquiries are too many?
There's no set number of hard credit inquiries that are considered “too many.” But if several are made within a short period, it can be a red flag for lenders.
There is an exception, though. If you're shopping for a car loan and comparing options from multiple lenders, credit bureaus may count those inquiries as just one — since it's clear you're rate shopping, not opening multiple new accounts. In that case, your score is less likely to take a hit.
Can you remove an unauthorized hard credit check from your credit report?
Yes. If you find a hard inquiry you don't recognize, you have the right to dispute it.
Start by pulling your free credit report at AnnualCreditReport.com. If you spot an inquiry you didn't authorize, contact the credit bureau reporting it and file a dispute. The bureau has 30 days to investigate and will remove it if they determine it was unauthorized.
Keep in mind that legitimate inquiries, even ones you may have forgotten about, can't be removed.
Soft vs. hard credit checks
| Soft credit check | Hard credit check | |
|---|---|---|
| What does it show? |
|
|
| Is permission required? | Not always — pre-approvals and background checks can happen without your knowledge | Yes |
| Is it visible to lenders? | No | Yes |
| Can multiple inquiries impact your score? | No | Yes, if there are several in a short period |
What shows up on soft vs. hard credit checks?
Both types of credit checks show personal information, but soft credit checks provide a more limited view of your credit report.
A hard pull will show your full credit report, which includes:
- Debts
- Payment history
- Any accounts sent to collections
Neither type of credit check will show your bank accounts, utility bill payments, or rent payments because this information isn't reported to the three major credit bureaus. Being late with payments, though, could impact your credit score if those accounts go to collections.
Myths about soft credit checks
Myth No. 1: Soft credit checks impact your credit score
Soft credit checks do not impact your credit score. They give potential lenders, landlords, employers, and others a general overview of your credit history.
Myth No. 2: Multiple soft credit checks affect your credit score
No matter how often soft credit checks are performed, they won't affect your credit score.
Myth No. 3: Soft credit checks are visible to lenders
Soft credit checks don't appear on the credit report lenders see. Only you can see them on your personal credit report.
Myth No. 4: Lenders need your permission
While lenders need your consent for a hard credit check, they don't need it for a soft one.
How to check your credit (without hurting your score)
Good news: checking your own credit is always a soft pull. It won't affect your score, no matter how many times you do it.
You can check your credit report weekly for free at AnnualCreditReport.com. Credit scores are available through the credit bureaus (Experian, Equifax, and TransUnion), myFICO.com, or certain credit card companies.
If you need a financial boost, checking your options with Advance America won't affect your credit. Not only do we work with customers across a range of credit backgrounds, but you can see if you qualify for a cash advance, installment loan, or line of credit without impacting your FICO credit score.
Apply online now or find a store near you.
Notice: Information provided in this article is for informational purposes only. Consult your attorney or financial advisor about your financial circumstances.
About the author
Bree Ewers is a senior editor, copywriter, and content writer whose work has been featured across the media, small business, and financial industries. She operates Nomad Freelance Content from her home office in Portland, Oregon.
