Hard and soft inquiries: what actually affects your score
"Will checking my credit hurt my score?" is one of the most common questions we hear. The short answer is no, as long as you're the one checking. The longer answer depends on the type of inquiry.
Soft inquiries
A soft inquiry happens when someone looks at your credit without you applying for anything. Examples:
- You check your own report or score, including through a monitoring service like CreditCovero.
- A lender checks whether you might qualify before you apply (often called prequalification).
- A company you already have an account with reviews it.
- You receive a pre-screened credit offer in the mail.
Soft inquiries don't affect your score, and other lenders can't see them.
Hard inquiries
A hard inquiry happens when you apply for credit and the lender pulls your report to make a decision: a credit card, a personal loan, a car loan, a mortgage, sometimes a phone contract or an apartment.
- A single hard inquiry usually has a small effect, and that effect fades over the following months.
- Hard inquiries stay on your report for up to two years, but most scoring models only count recent ones.
- Several hard inquiries in a short time have a bigger combined effect, and lenders may read them as a sign you're short of money.
Shopping for a rate
Many scoring models recognise that people compare offers for big loans. Several mortgage, auto or student loan inquiries within a short window are often counted as one. The window varies by model, so keep your rate shopping within a couple of weeks if you can. This doesn't apply to credit cards or most personal loans.
The practical takeaway
- Check your own credit as often as you like.
- Use prequalification tools before you apply, where they're offered.
- Apply only when you've a reasonable chance, and space applications out.
- If you see a hard inquiry you don't recognise, it could be a sign of identity theft. Dispute it with the bureau.
This article is general information, not financial or legal advice. Your situation may differ.