Hard and soft inquiries: know what each one means

An inquiry records access to a credit file

The CFPB defines an inquiry as a request to review a credit report for a permitted purpose such as credit, housing, insurance, or employment. Your report separates access associated with applications from reviews that do not result from a new credit request.

Hard inquiries usually follow an application

A lender may make a hard inquiry after you apply for credit. Most scoring models consider how recently and frequently you apply, so hard inquiries can affect a score. Their impact varies and should not be described as a fixed number of points.

Apply thoughtfully, but do not assume every inquiry is harmful or improper. Some lending models account for rate shopping for certain loan types within a defined period.

Soft inquiries do not affect scores

Checking your own report, an existing account review, prescreening, and certain employment or insurance reviews can appear as soft inquiries. They do not affect credit scores and are shown only to you when you review your report.

If a hard inquiry is unfamiliar, first identify the listed company and compare the date with recent applications. If you did not authorize or initiate the transaction, contact the company and consider identity-theft protections.