Hard vs. Soft Credit Inquiries

Credit checks are necessary when you apply for a loan, credit card or line of credit. And credit checks are used when you receive a pre-approved offer in the mail, or when you access your own credit report. But not all credit checks are the same. Here are the differences between hard and soft credit inquiries.

Hard Credit Checks (Hard Pulls)

When it happens: When you formally apply for a loan, line of credit, credit card or apartment lease, or when you ask your financial institution to preapprove you for a loan before you officially apply.

Impact on your credit score: Hard pulls can lower your score by a few points, but your score will generally recover within a few months. Although your score may bounce back, hard pulls stay on your credit report for two years.

If you’re rate-shopping and apply for the same type of loan with multiple lenders within a short window (typically 14 to 45 days), these hard pulls are often grouped and counted as a single inquiry.

Visibility: Visible to other lenders and financial institutions.

Soft Credit Check (Soft Pulls)

When it happens: When you check your own credit, when an employer conducts a background check or when a lender sends you an unsolicited pre-approved offer for a credit card, line or loan.

Impact on your credit score: None at all.

Visibility: Only visible to you – other lenders can’t see soft pulls when they view your credit report.

Stay up-to-date on your credit report with My Credit Manager in the City Mobile Bank app. Check your score, get alerts and view your debts right from your phone.