What Is a Credit Check?
A credit check occurs when an authorized organization accesses information from a consumer credit reporting company.
In the United States, the three nationwide credit bureaus are Equifax, Experian, and TransUnion.
Lenders use credit reports to evaluate borrowing history, outstanding accounts, payment behavior, and other information relevant to credit decisions.
Credit checks can also occur for purposes such as employment screening, insurance, and rental applications, subject to applicable laws.
Not every credit check affects your score.
The impact depends primarily on whether the inquiry is classified as soft or hard.
Soft vs. Hard Credit Checks: Key Differences
Feature | Soft Credit Check | Hard Credit Check |
|---|---|---|
Credit Score Impact | None | May temporarily lower score |
Typical Purpose | Prequalification or account review | Formal credit application |
Visible to Other Lenders | Generally no | Yes |
Consumer Credit Monitoring | Yes | Not ordinarily required |
Personal Loan Applications | Often during prequalification | Common during final underwriting |
Guaranteed Approval | No | No |
Neither inquiry type guarantees that a lender will approve an application.
What Is a Soft Credit Check?
A soft credit check, sometimes called a soft pull, allows credit information to be reviewed without affecting credit scores.
Common examples include:
Checking your own credit report.
Reviewing a credit score through an authorized monitoring service.
Certain personal loan prequalification checks.
Prescreening for promotional credit offers.
Reviews conducted by existing creditors.
Certain employment-related credit screenings.
Soft inquiries may appear when you review your own credit report, but they generally are not visible to other lenders reviewing your file.
Does Checking Your Own Credit Hurt Your Score?
No.
The Consumer Financial Protection Bureau confirms that requesting your own credit report does not lower your credit score.
Consumers can access free weekly online credit reports from Equifax, Experian, and TransUnion through AnnualCreditReport.com.
Regular reviews may help identify reporting errors or unfamiliar activity before applying for a loan.
What Is a Hard Credit Check?
A hard credit check generally occurs when a lender reviews your credit report in connection with a formal application for new credit.
Examples include applying for:
A personal installment loan.
A new credit card.
An auto loan.
A mortgage.
Certain credit limit increases.
Some refinancing arrangements.
Hard inquiries appear on your credit report and may be visible to other lenders.
They can affect credit scores because scoring models consider recent applications for new credit.
However, a hard inquiry does not automatically mean your application will be approved.
A lender may complete the credit review and still decline the request.
How Many Points Does a Hard Inquiry Lower Your Score?
There is no fixed number of points deducted for every hard inquiry.
FICO explains that one additional inquiry typically lowers scores by fewer than five points for most consumers.
However, the actual effect varies.
Someone with a short credit history or very few established accounts may experience a different impact from a borrower with a longer, well-established profile.
Illustrative Credit Score Example
Scenario | Hypothetical Score |
|---|---|
Before Formal Application | 620 |
After a 4-Point Change | 616 |
Difference | −4 points |
This example illustrates a possible change, not a prediction or guaranteed outcome.
Some borrowers may see no noticeable change, while others may experience a larger movement.
Credit scores can also change because of balance updates, payment activity, or other information reported around the same time.
How Long Do Hard Inquiries Stay on Your Credit Report?
A hard inquiry generally remains on a credit report for up to two years.
However, FICO Scores ordinarily consider inquiries only during the first 12 months.
This means an inquiry may remain visible after it stops affecting a FICO Score.
