Understanding Soft and Hard Credit Inquiries for FICO Scores

30 September 2025

Ever checked your credit score and wondered why it dipped slightly after applying for a loan? Or maybe you’ve heard the term "credit inquiry" but never gave it much thought? Well, buckle up, because today we’re diving into the world of soft and hard credit inquiries—what they are, how they impact your FICO score, and why they matter when managing your financial health.

What Is a Credit Inquiry?

A credit inquiry happens when someone—whether it’s you, a lender, or a credit card company—checks your credit report. These inquiries serve as a record of who’s peeking into your financial history.

But here’s the catch: not all credit inquiries are created equal. Some can slightly hurt your credit score, while others leave no impact at all. This is where we differentiate between soft and hard inquiries.

Soft Inquiries: The Friendly Peek

Ever received a "pre-approved" credit card offer in the mail? Or checked your credit score using a free monitoring service? These are examples of soft inquiries (also known as soft pulls).

Characteristics of Soft Inquiries

- No impact on your credit score 🟢
- Only visible to you on your credit report
- Occurs when you check your own credit or a company does for non-lending purposes

Common Examples of Soft Inquiries

✔ Checking your own credit score
✔ Pre-approved credit card or loan offers
✔ Background checks for employment
✔ Landlord screening when renting an apartment

Since soft inquiries don’t affect your FICO score, you can check your credit as often as you like without worrying about any negative consequences. That’s great news if you like to keep a close eye on your financial standing!

Hard Inquiries: The Credit Check That Counts

Now, this is where things get serious. A hard inquiry (or hard pull) happens when a lender checks your credit to make a lending decision. Unlike soft pulls, hard inquiries do impact your credit score, though usually only by a few points.

Characteristics of Hard Inquiries

- Can slightly lower your credit score 🔴
- Visible to other lenders and creditors
- Occurs when applying for credit or loans

Common Examples of Hard Inquiries

✔ Applying for a credit card
✔ Taking out a mortgage
✔ Getting a car loan
✔ Applying for a personal loan

Lenders use these inquiries to determine whether you’re a responsible borrower. If they see multiple hard inquiries in a short period, they might assume you’re desperate for credit—something that could be a red flag.

How Hard Inquiries Affect Your FICO Score

Your FICO score, the most widely used credit score, is calculated based on several factors. Hard inquiries fall under the "new credit" category, which makes up about 10% of your score.

Here’s how it plays out:
- One or two hard inquiries? No big deal.
- Multiple inquiries in a short time? Could suggest financial trouble.

How Much Does a Hard Inquiry Lower Your Score?

On average, a single hard inquiry might drop your score by 5 points or less. That doesn’t sound like much, but if your credit is borderline, it could be the difference between approval or rejection.

Do Hard Inquiries Stay on Your Report Forever?

Nope! Hard inquiries remain on your credit report for two years, but they only affect your FICO score for about 12 months. So if you’re planning a big purchase—like a home or car—try spacing out your credit applications to minimize the impact.

Can Too Many Hard Inquiries Hurt You?

Yes, but context matters. A bunch of hard pulls for different types of credit (credit cards, personal loans, etc.) can make you look risky. However, if you’re rate shopping, FICO has got your back.

Understanding Rate Shopping

If you’re applying for a big loan—like a mortgage or auto loan—FICO considers multiple inquiries within a short period (usually 14-45 days) as a single inquiry. This means you can shop around for the best interest rates without wrecking your credit score.

How to Minimize the Impact of Hard Inquiries

Nobody wants unnecessary dings on their credit score, right? Here’s how you can keep hard inquiries from causing too much damage:

1. Be Selective When Applying for Credit

Don’t apply for every credit card that pops up in your email. Only go for the ones that fit your financial needs.

2. Space Out Your Applications

If you’re planning on applying for a credit card, a car loan, and a mortgage all in the same month—pump the brakes! Try to space them out whenever possible.

3. Take Advantage of Pre-Qualification Offers

Many lenders let you check if you pre-qualify without a hard inquiry. This is a great way to see your chances before officially applying.

4. Monitor Your Credit Regularly

Knowing your credit score and history can help you plan better. Use free credit monitoring tools to keep track of soft and hard inquiries.

Myth Busters: Common Misconceptions About Credit Inquiries

❌ Myth #1: Checking Your Own Credit Hurts Your Score

✅ Nope! Checking your credit is a soft inquiry and has zero impact on your score.

❌ Myth #2: Hard Inquiries Ruin Your Credit for Years

✅ Hard pulls only impact your score for about 12 months and disappear from your report after two years.

❌ Myth #3: All Hard Inquiries Are the Same

✅ Not true! Rate shopping inquiries for big loans (like mortgages) are grouped together, so they don’t hurt your score as much.

Final Thoughts

Understanding the difference between soft and hard credit inquiries is key to maintaining a healthy FICO score. While soft inquiries are harmless, hard inquiries can have a small but temporary impact on your credit health. The key takeaway? Be mindful of how often you apply for new credit and always make informed financial decisions.

So, the next time you see a credit check on your report, you’ll know exactly what’s going on—no surprises!