The Difference Between Hard Inquiries vs Soft Inquiries

When you apply for credit, lenders and credit card issuers may check your credit report to assess your creditworthiness. This credit check is called an inquiry. There are two types of inquiries: hard inquiries and soft inquiries.

A hard inquiry (also known as a hard pull) is a credit check that occurs when a lender or creditor reviews your credit report as part of a formal application for credit, such as when you apply for a mortgage, car loan, or credit card. Hard inquiries can impact your credit score, as they may indicate that you are actively seeking new credit and could potentially take on more debt.

On the other hand, a soft inquiry (also known as a soft pull) is a credit check that occurs when you or a third party check your credit report for informational purposes, such as when you check your own credit score, when a potential employer performs a background check, or when a credit card issuer pre-approves you for a credit card offer. Soft inquiries do not impact your credit score.

In summary, hard inquiries are credit checks that occur when you apply for credit, while soft inquiries are credit checks that occur for informational purposes or without your permission. Hard inquiries can affect your credit score, while soft inquiries do not.

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