Credit Inquiry
What Is a Credit Inquiry?
A credit inquiry occurs when someone checks your credit report.
There are two types:
- Hard Inquiry
- Soft Inquiry
The difference matters because one affects your credit score — and one does not.
Hard Inquiry
A hard inquiry happens when a lender checks your credit as part of a lending decision.
Common examples:
- Applying for a credit card
- Applying for a mortgage
- Applying for an auto loan
Hard inquiries can slightly lower your credit score and typically remain on your credit report for about two years.
Credit scoring models developed by FICO factor hard inquiries into your score.
Multiple inquiries in a short time may signal higher borrowing risk — although rate-shopping for mortgages or auto loans is often grouped as a single inquiry.
Soft Inquiry
A soft inquiry happens when your credit is checked for non-lending purposes.
Examples:
- Checking your own credit
- Pre-approval offers
- Employment background checks
Soft inquiries do not affect your credit score.
Why Credit Inquiries Matter
Too many hard inquiries in a short period can:
- Slightly lower your score
- Signal increased credit risk
However, occasional inquiries are normal and expected.
FAQs About Credit Inquiry
Does checking my own credit hurt my score?
No. That’s a soft inquiry.
How many hard inquiries are too many?
There’s no exact number, but multiple applications in a short window can raise concerns.
Do hard inquiries disappear?
Yes. They typically fall off your report after two years.
Do employers perform hard inquiries?
No. Employment checks are soft inquiries.
Related Terms
