Hard vs. soft
A hard inquiry happens when a lender checks your credit because you applied for credit. A soft inquiry happens when you check your own credit or a company pre-screens you. Only hard inquiries can affect your score.
How much they hurt
A single hard inquiry typically shaves only a few points and its effect fades within a year, though it stays visible on your report for two years.
Rate shopping is protected
Multiple inquiries for the same type of loan — like a mortgage or auto loan — within a short window are usually counted as one, so you can shop for rates without fear.
When to be careful
Several card applications in a short period can compound and signal risk. Space out applications and use pre-qualification tools that rely on soft pulls when available.
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