What is a hard inquiry?
Hard inquiries generally occur when a financial institution, such as a lender or credit card issuer, checks your credit report when making a lending decision. They commonly take place when you apply for a loan, credit card or mortgage, and you typically have to authorize them.
Hard inquiries could lower your credit score by a few points and may remain on your credit report for two years. Fortunately, as time passes, the damage to your credit score usually decreases or disappears, often even before the hard inquiry falls off your credit report.
What is a soft inquiry?
Soft inquiries typically occur when a person or company checks your credit report as part of a background check. Examples include employer background checks, getting pre-approved for credit card offers and checking your own credit score. Unlike hard inquiries, a soft inquiry may occur without your permission. However, they won't affect your credit score. Soft inquiries may or may not be recorded in your credit report, depending on the credit bureau.
One of the biggest credit misconceptions is that checking your own credit score using companies like Credit Karma will hurt your credit score. This is not the case. You can check your credit scores at Credit Karma as often as you like without affecting your credit score
Hard Inquiries
Usually
Applying for an auto loan, student loan, business loan or personal loan
Applying for a credit card
Applying for a mortgage
Sometimes
Applying to rent an apartment
Verification of identity by a financial institution, such as a credit union or stock brokerage
Renting a car
Getting a cable or Internet account
Opening a checking, savings or money market account
Requesting a credit limit increase
Getting a cell phone contract
Soft Inquiries
Usually
Checking your own credit score
Pre-approved credit card and loan offers
Background check, such as those done by employers
Sometimes
Applying to rent an apartment
Verification of identity by a financial institution, such as a credit union or stock brokerage
Renting a car
Getting a cable or Internet account
Opening a checking, savings or money market account
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