What Is a Soft Inquiry? Definition and How It Works

Here at MoneyFor, our goal is to help you make informed financial decisions. We are committed to accuracy and impartiality in all our content. It’s important to note that articles may reference products from our partners who compensate us. This influences which products we feature and their presentation on our site, not our evaluation.

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.

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.

Go to MoneyFor to learn more!

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.

Are you in the market for a new credit card?

Check out the best no deposit credit cards available now!

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.

Click here for second chance credit cards!

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.

Looking for a no deposit credit card?

Find the best unsecured credit cards designed for poor scores!

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.

Ready for a new card?

Find tips and tricks to get your application approved!

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.

Want to improve your score?

Check out how to fix a bad credit score!

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.

1. Paycheck Advance is For eligible customers only. Your actual available Paycheck Advance amount will be displayed to you in the mobile app and may change from time to time. Conditions and eligibility may vary and are subject to change at any time, at the sole discretion of Finco Advance LLC, which offers this optional feature. Finco Advance LLC is a financial technology company, not a bank. Expedited disbursement of your Paycheck Advance is an optional feature that is subject to an Instant Access Fee and may not be available to all users. Expedited disbursements may take up to an hour. For more information, please refer to Paycheck Advance Terms and Conditions.

2. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group, Member FDIC, and Cross River Bank, Member FDIC. The Current Visa® Debit Card is issued by Choice Financial Group pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. The Current Visa® secured charge card is issued by Cross River Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your Card for its issuing bank. Current Individual Account required to apply for the Current Visa® secured charge card. Independent approval required.

3. Individual results may vary. Using your credit card responsibly may allow you to improve your credit score. Credit building depends on various factors, including your payment history, credit utilization, length of credit history, and other financial activities.

4. Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds is subject to timing of payer’s submission of deposits.

5. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group. Funds held in Savings Pods are FDIC-insured on a pass-through basis up to $250,000 at our partner bank Choice Financial Group, member FDIC

6. Actual overdraft amount may vary and is subject to change at any time, at Current’s sole discretion. In order to qualify and enroll in the Fee-Free Overdraft feature, you must receive $500 or more in Qualifying Deposits into your Current Account over the preceding 30-day period. For more information, please refer to Fee-free Overdraft Terms and Conditions.

7. You may earn Points in connection with your everyday spending and by completing other actions that Current designates as subject to the Current Points Program. The amount of Points granted for different actions as well as the purchase requirements necessary to earn Points will vary, and is subject to Current’s sole discretion. After qualifying, please allow 3-5 business days for points to post to your Current account. The Current Points program is not available to Teen Account holders. See Current Points Terms and Conditions.

8. Some fees may apply, including out of network ATM fees of $2.50 per transaction, late payment fees of 3% of any total due balance outstanding and past due for two or more billing cycles, foreign transaction fees of 3% of the full transaction amount (minimum $0.50), card replacement fees per card of $5 for regular delivery and $30 for expedited delivery, cash deposit fees of $3.50 per deposit, and third party processing fees.

9. Boost Bonuses are credited to your Savings Pods within 48 hours of enabling the Boost feature and on a daily basis thereafter, provided that the Savings Pod has accrued a Boost Bonus of at least $0.01. The Boost rate on Savings Pods is variable and may change at any time. The disclosed rate is effective as of August 1, 2023. Must have $0.01 in Savings Pods to earn a Boost rate of either 0.25% or 4.00% annually on the portion of balances up to $2000 per Savings Pod, up to $6000 total. The remaining balance earns 0.00%. A qualifying direct deposit of $200 or more is required for 4.00%. No minimum balance required. For more information, please refer to Current Boost Terms and Conditions.

10. Cryptocurrency services are powered by Zero Hash LLC and Zero Hash Liquidity Services LLC, and may not be available in all states. Terms and conditions apply. When you buy or sell cryptocurrency, a difference between the current market price and the price you buy or sell that asset for is called a spread. However, unlike most other exchanges Current does not charge an additional trading fee. Cryptocurrency transactions are a form of investment, and all investments are subject to investment risks, including possible loss of the principal amount invested. Cryptocurrency is not insured by the FDIC or any other government-backed or third-party insurance. Your purchase of cryptocurrency is not a deposit or other obligation of, or guaranteed by, Choice Financial Group or Cross River Bank. The cryptocurrency assets in your Zero Hash account are not held at Current, Choice Financial Group, or Cross River Bank. Current, Choice Financial Group, and Cross River Bank are not responsible for the cryptocurrency assets held in any Zero Hash account. Neither Current, Choice, nor Cross River Bank is involved in the purchase, sale, exchange of fiat funds for cryptocurrency, or custody of the cryptocurrencies. Terms and Conditions apply (platform and user agreements). Crypto on Current is not currently available in HI. Licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services. This does not constitute investment advice.

11. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group. Your money is FDIC-insured on a pass-through basis up to $250,000 at each of our partner banks, Choice Financial Group and Cross River Bank, members FDIC.

12. Average value based on Fine Hotels + Resorts bookings in 2023 for stays of two nights. Benefits include daily breakfast for two, room upgrade upon arrival when available, $100 amenity, guaranteed 4PM late checkout, and noon check-in when available. Certain room categories not eligible for upgrade. $100 amenity varies by property. Actual value will vary based on property, room rate, upgrade availability, and use of benefits.

13. Up to $500 per Covered Trip that is delayed for more than 6 hours; and 2 claims per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

14. The maximum benefit amount for Trip Cancellation and Interruption Insurance is $10,000 per Covered Trip and $20,000 per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

15. Baggage Insurance Plan coverage can be in effect for Covered Persons for eligible lost, damaged, or stolen Baggage during their travel on a Common Carrier Vehicle (e.g. plane, train, ship, or bus) when the Entire Fare for a ticket for the trip (one- way or round-trip) is charged to an Eligible Card. Coverage can be provided for up to $2,000 for checked Baggage and up to a combined maximum of $3,000 for checked and carry-on baggage, in excess of coverage provided by the Common Carrier. The coverage is also subject to a $3,000 aggregate limit per Covered Trip. For New York State residents, there is a $2,000 per bag/suitcase limit for each Covered Person with a $10,000 aggregate maximum for all Covered Persons per Covered Trip. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

16. Car Rental Loss and Damage Insurance can provide coverage up to $75,000 for theft of or damage to most rental vehicles when you use your eligible Card to reserve and pay for the entire eligible vehicle rental and decline the collision damage waiver or similar option offered by the Commercial Car Rental Company. This product provides secondary coverage and does not include liability coverage. Not all vehicle types or rentals are covered. Geographic restrictions apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.

17. Coverage for a Stolen or damaged Eligible Cellular Wireless Telephone is subject to the terms, conditions, exclusions, and limits of liability of this benefit. The maximum liability is $800, per claim, per Eligible Card Account. Each claim is subject to a $50 deductible. Coverage is limited to two (2) claims per Eligible Card Account per 12 month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

18. When an American Express® Card Member charges a Covered Purchase to an Eligible Card, Extended Warranty§ can provide up to one extra year added to the Original Manufacturer’s Warranty. Applies to warranties of five (5) years or less. Coverage is up to the actual amount charged to your Card for the item up to a maximum of $10,000; not to exceed $50,000 per Card Member account per calendar year. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

19. Purchase Protection is an embedded benefit of your Card Membership and requires no enrollment. It can help protect Covered Purchases made on your Eligible Card when they’re accidentally damaged, stolen, or lost, for up to 90 days from the Covered Purchase date. The coverage is limited to up to $10,000 per occurrence, up to $50,000 per Card Member account per calendar year. Coverage Limits Apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

20. Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.

21. The secured Chime Credit Builder Visa® Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted.

22. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.

23. The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.

24. There’s no fee for the Chime Savings Account. Cash withdrawal and Third-party fees may apply to Chime Checking Accounts. You must have a Chime Checking Account to open a Chime Savings Account.

25. To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.

26. Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.

27. Based on a representative study conducted by Experian®, members who made their first purchase with Credit Builder between June 2020 and October 2020 observed an average FICO® Score 8 increase of 30 points after approximately 8 months. On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score.

28. On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.

29. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

30. SpotMe® on Debit is an optional, no fee overdraft service attached to your Chime Checking Account. To qualify for the SpotMe on Debit service, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account each month and have activated your Visa debit card. Qualifying members will be allowed to overdraw their Chime Checking Account for up to $20 on debit card purchases and cash withdrawals initially but may later be eligible for a higher limit of up to $200 or more based on Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Debit limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime’s sole discretion. Although Chime does not charge any overdraft fees for SpotMe on Debit, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe on Debit will not cover any non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe on Debit Terms and Conditions.

31. Tipping or not tipping has no impact on your eligibility for SpotMe®.

32. Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.

33. Save When I Get Paid automatically transfers 10% of your direct deposits of $500 or more from your Checking Account into your savings account.

34. Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account.

35. Mobile Check Deposit eligibility is determined by Chime in its sole discretion and may be granted based on various factors including, but not limited to, a member’s direct deposit enrollment status.

36. Funds are automatically debited from your Checking Account and typically deposited into the recipient’s Checking Account within seconds. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed.

37. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed. Non-Chime members must use a valid debit card to claim funds.

* EarnIn is not available for Connecticut residents

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?

Key takeaways

Jump to: