Key Takeaways
Credit Inquiry
A credit inquiry is a record created when someone accesses your credit report. There are two types: hard inquiries, which occur when you apply for credit and can temporarily lower your score, and soft inquiries, which occur for non-lending purposes and have no effect on your score at all.
Under the Fair Credit Reporting Act (FCRA), only permissible-purpose inquiries are allowed. Hard inquiries remain on your credit report for two years, though their scoring impact typically fades within 12 months.
The Two Types of Credit Checks
When a lender, employer, landlord, or even you look at your credit report, that access is recorded as an inquiry. But not all inquiries are the same. The distinction between a hard inquiry and a soft inquiry determines whether that check affects your credit score at all.
A hard inquiry (also called a hard pull) happens when you actively apply for new credit — a mortgage, auto loan, credit card, or personal loan. The lender requests your full credit report to evaluate your application, and that access is flagged in a way that scoring models can see and factor in.
A soft inquiry (also called a soft pull) covers everything else: checking your own credit, background checks by potential employers, landlord screenings, and pre-qualification checks by lenders sizing up your eligibility before you formally apply. Soft inquiries appear on reports you pull yourself but are never visible to lenders reviewing your file — and they carry no scoring weight whatsoever.
For a broader look at what makes up your credit profile, see how credit reports and credit scores differ.
Soft Inquiries Are Invisible to Lenders
When a lender pulls your credit report to evaluate a loan application, they see only hard inquiries — not soft ones. Pre-qualification checks, employer screenings, and your own credit monitoring never appear in the version of your report that creditors review.
How Hard Inquiries Affect Your Credit Score
Hard inquiries fall under the "new credit" category in standard credit scoring models, which accounts for roughly 10% of a FICO Score. A single hard inquiry typically reduces a score by fewer than five points — a minor and temporary effect for most consumers.
That said, the impact is not identical for everyone. If your credit history is short, your overall account mix is thin, or you've recently opened several accounts, even a small inquiry can carry more relative weight. Conversely, a consumer with a long, established history and strong payment record will usually see minimal movement.
<5 pts
Typical score drop from one hard inquiry
According to FICO's published guidance, a single hard inquiry lowers most consumers' scores by fewer than five points.
2 years
How long hard inquiries stay on your report
Hard inquiries are reported for 24 months, but most scoring models stop factoring them in after 12 months.
10%
Share of FICO Score tied to new credit
New credit — the category that includes hard inquiries — represents approximately 10% of a standard FICO Score calculation.
The scoring impact of a hard inquiry generally fades within 12 months, even though the inquiry itself remains listed on your report for two years. After that point, it has no practical effect on most scoring models.
Understanding exactly how inquiries fit into the larger scoring picture is covered in depth in our article on what credit scores actually measure.
Rate Shopping: The Important Exception
One of the most practically useful rules in credit scoring is the rate shopping window. When you're seeking a mortgage, auto loan, or student loan, it's sensible to compare offers from multiple lenders. Credit scoring models recognize this and are designed to prevent rate shopping from punishing consumers.
Under FICO's guidelines, multiple hard inquiries for the same loan type made within a 14- to 45-day window (depending on the FICO version) are typically consolidated and treated as a single inquiry. VantageScore models apply a similar 14-day grouping window.
This protection applies specifically to installment credit products — mortgages, auto loans, and student loans. It does not apply to credit card applications, where each application generates a separately counted hard inquiry.
Concentrate Your Loan Shopping
When comparing mortgage or auto loan offers, aim to submit all applications within a two-week period. Most scoring models will group them as one inquiry, limiting any score impact while still letting you find the most favorable terms.
If you're actively comparing lenders, conducting your shopping within a focused, short window — rather than spreading applications over several months — is a straightforward way to limit scoring impact. This is also addressed in common credit score myths worth understanding.
Where Inquiries Appear on Your Credit Report
Your credit report contains a dedicated inquiries section that logs both hard and soft pulls. When you review your own report — which you're entitled to do for free through AnnualCreditReport.com — you'll see both types listed. Lenders who pull your report for a credit decision, however, only see hard inquiries.
Hard inquiries on your report include the name of the creditor, the date of access, and the type of inquiry. Soft inquiries are listed separately and include things like account reviews by existing creditors, promotional pre-screens, and your own personal pulls.
If you find a hard inquiry you don't recognize, it's worth investigating. You have the right under the Fair Credit Reporting Act to dispute unauthorized inquiries with the credit bureaus. For a complete walkthrough of how to read and interpret your report's inquiry section, see our guide on reading your credit report section by section. For errors more broadly, the dispute process and your legal rights are worth understanding before you file.
This article is for general informational and educational purposes only and does not constitute personalized financial or legal advice. Consult a licensed financial professional for guidance specific to your situation.