Hard Inquiry vs. Soft Inquiry: The Difference That Could Hurt Your Credit
June 25, 2025
By Shannon Bloom
6 min read
When I bought my first car, I remember the moment the dealer ran my credit. He gave me a warm smile and said, “We’re just going to do a quick check.”
Three days later, I saw my credit score drop by nine points.
That “quick check”? It was a hard inquiry. And no, I wasn’t warned.
It wasn’t the end of the world—but it was a wake-up call. Because at the time, I didn’t even know there was a difference between hard and soft inquiries. It all sounded the same to me: financial background noise.
Spoiler: it’s not. And if you’re applying for a mortgage, car loan, credit card, or even just curious about your own score, understanding the difference could mean the difference between a clean credit report and an unnecessary dip in your score.
What Exactly Is a Credit Inquiry?
When someone checks your credit, it’s called an inquiry or a pull. There are two types: hard and soft. They both show up on your credit file, but they’re not treated the same—and the outcomes aren’t equal.
A soft inquiry is like someone glancing through your window. A hard inquiry is like someone walking in and inspecting the whole place with a flashlight.
You wouldn’t mind a glance, but too many full-on tours? That’s when your credit score starts raising eyebrows.
Hard Inquiries: The Ones That Actually Impact Your Credit
A hard inquiry (or hard pull) happens when a lender checks your credit to make a decision about lending you money. It’s considered a sign you’re actively seeking new credit, which could make you look like more of a risk—especially if you’ve had multiple pulls recently.
Common situations that trigger a hard inquiry:
Applying for a credit card
Getting pre-approved for a mortgage or car loan
Requesting a personal loan
Signing up for a new cell phone plan with financing
Leasing a car
These inquiries typically shave off fewer than five points from your FICO score, depending on your overall credit health. While they won’t tank your credit alone, too many in a short period may cause lenders to question your financial stability.
Soft Inquiries: The Harmless (But Still Useful) Ones
A soft inquiry, or soft pull, doesn’t affect your credit score—at all.
It usually happens when:
You check your own credit
A company pre-approves you for an offer
A current lender does a routine review
You’re applying for a job or apartment (sometimes)
They show up on your credit report, but only you can see them. Lenders can’t. Think of it like background noise your credit score doesn’t care about.
I’ve made it a monthly habit to check my own credit report using a soft pull. It’s like checking my fitness tracker—no one else needs to know, but I stay in the loop.
Why the Difference Matters More Than You Think
If you’ve ever been in a credit-heavy season (applying for a mortgage, car shopping, starting a business), you know how fast these inquiries can stack up. And that’s where being strategic becomes crucial.
Imagine this: You apply for a store card to get a 10% discount. A few days later, you shop for a new car, and a dealership runs your credit across multiple lenders. Then your new apartment runs a tenant screening.
Boom—three to five hard pulls within a month. Your score takes a hit not because you’re irresponsible, but because the system sees “multiple credit-seeking activities.”
If you’re planning to make a major financial move (like buying a house), avoid applying for other lines of credit in the months leading up to it. Even small dips in your score can affect your interest rate or approval odds.
Hard Inquiry vs. Soft Inquiry: Quick Comparison
What Happens If You Have Too Many Hard Inquiries?
Lenders might get spooked. To them, multiple inquiries look like you’re in financial trouble—even if you’re just shopping around.
But here’s the nuance: not all inquiries are treated equally. The credit scoring models (like FICO and VantageScore) know you might want to compare rates, especially for mortgages or auto loans. That’s why they offer deduplication periods.
FICO scores count multiple inquiries for the same loan type within 14 to 45 days as just one inquiry. The window depends on the scoring version being used.
That’s your permission to shop smarter—just do it fast and strategically.
How to Protect Your Score While Still Being Curious
Here’s what I started doing (and recommend to friends now too):
1. Ask Before They Pull
If you’re applying for anything—an apartment, utility setup, new phone contract, or even store credit—always ask what type of credit check will be performed. A soft inquiry won’t impact your score at all, but a hard one might lower it slightly, especially if you’ve had a few recently.
Most companies will be upfront about it if you ask, and if they’re not? That’s a red flag. This tiny question takes 30 seconds and could save you points on your credit you didn’t even realize you were risking.
2. Do All Rate Shopping in a Tight Window
Planning to apply for a loan, mortgage, or auto financing? Do all your comparison shopping and applications within a short window—ideally 14 to 30 days—to minimize credit score impact. That’s because scoring models like FICO and VantageScore recognize that consumers often compare rates, and group multiple inquiries for the same type of loan into one if they’re close together.
So if you’re smart with your timing, you can shop around without looking like you’re financially scrambling.
3. Use Pre-Qualification Tools That Use Soft Pulls
Before applying for a new credit card or loan, check if the issuer offers a pre-qualification or pre-approval tool that only uses a soft inquiry. These tools give you an idea of your approval odds without affecting your credit score, which makes them perfect for planning your next financial move.
It’s especially useful if you’re trying to avoid a hard pull while still exploring options. Just remember: pre-qualification is not a guarantee, but it’s a smart and low-risk way to preview your chances.
When Inquiries Really Don’t Matter That Much
Context matters. If your score is in the 700s and you have a strong credit history, a couple of hard pulls won’t hurt much. But if you’re borderline (say, low 600s), every point counts.
So it’s less about fearing hard inquiries and more about using them intentionally. If you’re applying for a mortgage or business loan soon, space them out wisely. If you're just curious about pre-qualifying for a credit card? Opt for soft-pull tools instead.
Knowledge Is Power (And Protection)
The bottom line? Hard inquiries aren’t bad—they just require a little strategy. Soft inquiries are harmless, so you can stop worrying about those entirely. By learning the difference and being smarter about how and when you apply for credit, you’re putting yourself in the driver’s seat. It’s your financial life, after all—why not take charge?
Shannon Bloom, Senior Editor
Shannon is the voice that sets the tone—and the standard—at Wise Wallet. A longtime leader in digital content, she turns complex financial trends into content that connects. Shannon brings clarity, style, and strategy to everything from mortgage guides to money myths. She's also been known to pause mid-walk to analyze typefaces on ATM machines.