What Is a Soft Inquiry? Definition and How It Works

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Key takeaways

Soft inquiries do not affect your credit score. You can view your score without impacting it.
Hard inquiries can lower your score and remain on your report for up to two years.
Knowing the distinction between a hard and soft inquiry helps you make informed decisions.

A soft inquiry gives you a peek into your financial health without causing your credit score to go down. Unlike hard inquiries, which can impact your rating, soft credit inquiries are not tied to specific applications and so have no effect on your rating. They often occur without your explicit permission and are typically used by lenders to pre-qualify you for offers, by employers and landlords during background checks, or by you when you want to check your score.

Let’s look deeper into how hard and soft inquiries work, what sets them apart, and when you might run into one.

What is a soft inquiry and how does it impact your credit score?

Definition

A soft inquiry, also known as a soft pull, is when you find out your own credit score without impacting it at all. While it may appear on your report, only you can view it, not lenders so it will not impact their decisions.

How it works

A soft credit inquiry occurs when a lender, credit card company, or another entity checks your score without your permission as part of a background check or pre-approval process. Unlike hard inquiries, which are conducted when you apply for new credit, a soft inquiries do not signal that you are actively looking to borrow money. Since they do not indicate potential new debt, they are considered harmless to your financial health. This type of inquiry is typically associated with activities like checking your own credit scores, background checks by employers or landlords, utility companies to see about security deposits, insurance companies for quotes, or pre-qualifications for financial products.

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Soft inquiry vs. hard inquiry

Understanding the difference between a soft vs hard credit check is crucial for your financial health.

Key Differences

A soft check occurs when your score is checked as part of a background process rather than a formal application for a new credit card, personal loan, or auto loan. Common scenarios include pre-approvals for cards or loans, background checks by employers, or when you check your own rating. The key advantage is that they do not impact your score and are visible to only you.

A hard inquiry, also known as a hard pull, is conducted when you apply to borrow money through a personal loan, mortgage, car loan, credit card, etc. Hard credit inquiries impact your credit scores and are visible to potential lenders. They typically lower your rating by five points and will remain on your credit reports for two years. A single inquiry is not a big deal, but multiple hard inquiries in a short period tells lenders that you are a high risk candidate and makes them wary of lending to you. This is why it’s important to be mindful of how often you apply for financial products.

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How soft inquiries affect your credit report

When it comes to managing modern finances, it’s essential to understand what appears on your reports and what does not.

What’s recorded and what’s not

Depending on the credit bureau, soft credit checks may or may not be recorded. If they are added to your report, they are only visible to you. This means they do not impact your score or ability to borrow money. A hard inquiry is always recorded and will affect your score – though only by a marginal amount.

One common question is, how long do credit inquiries stay on your credit report? Both hard and soft credit inquiries remain on your report for up to two years. Lenders are able to see a hard pull for the full two years, but it generally only impacts your score for the first year.

Benefits of soft inquiries

Soft checks offer numerous advantages for consumers from prequalifying for soft pull credit cards to score monitoring.

Advantages for consumers

No impact on credit scores: You can check your rating without hurting it.
Frequent monitoring: Monitoring your credit scores helps you stay on top of your financial health.
Pre-qualification opportunities: Many credit card companies and lenders offer pre-qualification through soft pulls. You get to see if you’re eligible and view potential terms without a formal application that requires a hard inquiry.
Soft pull credit cards: Soft inquiry credit cards allow you to check for pre-approval without impacting your rating.
Privacy: Soft pulls are only visible to you. A hard pull goes on your report and is visible to potential lenders.

Any time you receive an offer for a new card, it is due to a soft check that shows you to be eligible.

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Credit score implications

Hard pulls can lower your score, but a soft credit inquiry has no impact at all. This is because it is not associated with an active request to borrow money but is rather informational in nature. This lack of impact on scores makes them a valuable tool.

No impact on credit score

Many lenders offer soft credit check credit cards, which you can prequalify for before submitting a formal application. This way, you can see if you’re approved for a card without a hard inquiry. There are even certain cards that come with no hard inquiry at all. They are typically secured – require a cash deposit – and are designed to help raise your rating.

Common soft check scenarios

Soft inquiries are very useful tools. They allow you, a financial institution, a potential employer, etc., to check your score without hurting it. Many institutions will perform soft inquiries in order to review your financial health before agreeing to work with you.

Examples of soft inquiries

Soft inquiries occur in various everyday situations. Common scenarios include:

Checking your own score
Pre-approval process for a personal loan or credit card
Background checks by employers. landlords, or utility companies
Account reviews by existing lenders
Insurance quotes
Promotional offers for financial products

The basic idea behind all of these scenarios is that you are not looking to borrow at the moment. You or the institution want to know your score and assess your financial health.

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Minimizing the effect of hard inquiries

While hard pulls are necessary to be approved for a new financial product, they do lower your score by a few points, so it’s essential to manage them carefully.

Strategies for consumers

The first step is to be selective about applying for new accounts. Before submitting an application, research and compare your options thoroughly to ensure you meet the qualifications for approval. This reduces the likelihood of having too many hard inquiries due to unsuccessful applications, which can collectively lower your score.

How many hard inquiries are too many? The exact answer depends on your score, but in general, you’ll want to space out applications between six months to a year.

Another approach is to take advantage of rate shopping for certain loans. Credit scoring models often treat multiple inquiries for the same type of loan (auto loan, mortgage, or student loan) within a short period (usually 14-45 days) as a single inquiry. This practice allows you to shop around for the best rates without significantly impacting your score. Not all scoring companies use the same time frame so it’s best to consolidate your rate shopping into 14 days to be sure all inquiries are treated as one.

It’s also wise to focus on building and maintaining a high rating. If your score falls in the good to excellent range, a single hard inquiry will not have much of an impact. Plus, lenders may be more willing to approve your applications despite a few recent inquiries.

Additionally, understanding when hard inquiries fall off your credit report (after 24 months) can help you time your applications strategically, ensuring that older inquiries don’t combine with new ones to lower your score.

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Frequently asked questions

1. Do soft inquiries fall off?

Soft inquiries do not impact credit scores and are only visible to you. These inquiries typically stay on your report for up to 24 months. However, since they don’t affect your score, there’s no need to worry about how long credit checks stay on your credit report or when credit checks fall off in this context.

2. How many points does your credit score go down for a soft check?

The good news is that your score does not go down at all. This type of check is purely informational and has no impact on credit scores. Only hard inquiries affect credit scores.

3. Can you fail a soft check?

No because it is not a pass/fail assessment. A soft check simply provides a snapshot of your financial health for informational purposes. It can help you assess if you qualify for a car loan, personal loan, or card.

4. How long does a credit inquiry stay on your credit report?

Whether soft or hard, inquiries stay on your report for up to 24 months. However, only hard inquiries are visible to lenders and impact your score.

Bottom line

Understanding the difference between a soft pull vs a hard pull is important for managing your financial health. Soft inquiries are tools that allow you or other entities to check your financial health without hurting your rating. They are a safe way to monitor your score and explore new financial opportunities.

On the other hand, hard pulls are triggered by formal applications and can lower your score by a few points. While necessary, understanding how to manage them—such as limiting the number of applications and timing them carefully—can help minimize their impact.

By being mindful of the differences between hard and soft credit pulls and using them to your advantage, you can better protect and enhance your financial well-being.

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Rachel Alulis

Rachel Alulis has been the lead editor for Moneyfor’s credit cards team since 2015 and for the financial rewards team since 2023. Before joining Moneyfor, Rachel worked at USA Today and the Des Moines Register. She then established a successful freelance writing and editing business specializing in personal finance. Rachel holds a bachelor’s degree in journalism and an MBA.

What Is a Soft Inquiry?