What is the Difference Between a Hard and Soft Inquiry?

A soft credit check (also known as a soft credit inquiry) is a review of your credit file for reasons other than a formal credit application. Common uses include prequalification offers, background checks, and credit monitoring.

These inquiries remain on your report for up to two years but do not affect your credit score because they aren’t related to a credit application or loan decision.

Only you can see soft inquiries on your credit report. Companies in the same industry can see soft inquiries related to their field, but not those from unrelated industries. For example, an insurer can see other insurance-related pulls but not those related to loan preapprovals.

When you’re likely to encounter soft credit checks

Soft pulls happen for a variety of reasons and are more common than you might realize.

• Checking your own credit: You can pull your report through AnnualCreditReport.com or a credit monitoring app as often as you’d like without any scoring impact.
• Prequalification offers: Lenders like BHG Financial use soft pulls to show you estimated rates and terms before you formally apply, without affecting your credit score.
• Background or identity checks: Employer screenings, compliance reviews, and certain tenant or utility checks all fall into this category.
• Prescreened promotional offers: These can happen without your explicit consent—they’re how lenders identify potential borrowers for preapproved offers.

A hard credit check (also known as a hard credit inquiry) occurs when a formal inquiry is made into your credit report by a lender. Depending on the lender, this may happen when you submit a formal application for new credit or a little later (after you’ve been approved and agree to the terms of the loan). Examples include personal loans, credit cards, mortgages, auto loans, and student loans.

Hard inquiries generally require your permission and are used by lenders to assess risk. Oftentimes, lenders will use a soft inquiry to get a good idea of your best options and then perform a hard inquiry to verify. These hard inquiries may cause your credit score to dip by a few points, but it’s usually less than five, according to FICO.

While hard inquiries remain on your credit report for up to two years, your score can rebound in just a few months with on-time payments.

When you’re likely to encounter hard credit checks

Hard pulls are tied to formal lending decisions, so they occur when you’re actively pursuing new credit. If you’re strategic about timing, you can minimize the impact.

Common triggers include:

• Credit cards: Each new credit card application typically results in a hard inquiry. Requesting a credit line increase on an existing card may trigger one as well.
• Personal loans: A hard pull happens when you formally apply, although many lenders, including BHG Financial, offer soft-pull prequalification so you can explore your options first.
• Mortgages: Lenders will run a hard pull when you apply and often again shortly before closing.
• Auto loans and leases: Whether you're financing through a bank or a dealership, expect a hard inquiry.
• Apartment leases: Some landlords and leasing companies run hard inquiries as part of their screening process, though this varies. It's worth asking upfront.

Multiple hard inquiries in a short timeframe can signal risk to lenders. However, FICO recognizes that rate-shopping is responsible behavior.

Any auto, mortgage, or student loan inquiries made within a 14- to 45-day window are typically treated as a single inquiry.

This means you can compare offers without stacking up hits on your report.

Understanding the soft-to-hard inquiry process lets you compare lenders and loan terms without risking your score.

This is particularly important for high-income professionals juggling financial priorities like college tuition, medical expenses, or aging parent care. Every detail of your credit profile counts when qualifying for larger, unsecured loans.

To minimize the inquiry impact on your credit report:

• Start with soft prequalification: This lets you explore rates, terms, and potential loan amounts without affecting your score. It's a financially smart first step, especially if you plan to rate-shop across lenders for secured loans.
• Apply when you're ready: Once you've found the right fit, make sure you understand what part of the application process will trigger a hard inquiry. Submit applications within a single FICO rate-shopping window (typically 14–45 days).
• Monitor your credit profile: Check your report regularly to catch unauthorized inquiries early. On-time payments and low balances have a greater impact on your score than any single inquiry.

Mistakes happen. If you spot a hard inquiry you don’t recognize, it’s worth investigating, especially since unauthorized inquiries can be a sign of identity theft or a lender error. Here’s how to address inaccuracies:

• Review your reports from all three bureaus: Pull your credit reports from Equifax, Experian, and TransUnion through AnnualCreditReport.com. Look for any hard inquiries you didn’t authorize. Note: Legitimate hard inquiries cannot be removed from your credit report.
• File a dispute directly with the bureau: Each bureau has an online dispute process. You’ll need to identify the inquiry and explain why you believe it’s inaccurate. Include supporting documentation if you have it.
• Contact the lender If a company pulled your credit without authorization, ask them to remove the inquiry. Many will cooperate, especially if you can show you never applied.
• Follow up: Bureaus typically respond within 30–45 days. If the inquiry is verified as unauthorized, it’ll be removed from your report.

A clean credit report ensures lenders see data that accurately reflects your financial behavior. This is what earns you the best possible terms when it’s time to apply.

BHG Financial makes it easy to explore your debt consolidation options before committing. Our prequalification process uses a soft credit inquiry, so there’s no impact on your score¹ and no obligation to proceed.

A personal loan for debt consolidation through BHG Financial may be a strong option for high-income borrowers with substantial revolving balances who want to simplify repayment before pursuing major financial goals like buying a home.

BHG Financial offers access to large unsecured personal loans up to $250,000² and terms up to 10 years.^2,3 Qualified applicants may receive an approval decision in as little as 24 hours ⁴, and funding can arrive in as few as five days.⁴

Ready to see what’s possible? Check your rate through prequalification without impacting your credit score¹

What triggers a hard inquiry?

Any formal application for credit can trigger a hard inquiry. Common examples include applying for a personal loan, mortgage, credit card, or auto loan. In most cases, hard inquiries require your permission as part of the application process.

What shows up on a soft inquiry?

When a company runs a soft credit check, they receive a view of your credit report, including your personal identifying information, credit account history, payment history, and public records. They use this information to make decisions like whether to send you a prequalified offer.

On your end, soft inquiries appear on your credit report but do not affect your score. Companies within the same industry can see pulls related to their field, but they cannot see unrelated inquiries.

How long does a hard inquiry affect your credit score?

A hard inquiry stays on your credit report for up to two years, but its impact on your score can lessen within a few months with on-time payments. In fact, most borrowers who consolidate credit card debt through BHG improve their FICO score by 30 points or more within a few months of funding.

The initial impact is typically minor (often fewer than five points). For auto, mortgage, and student loans, multiple inquiries made within a 14- to 45-day FICO rate-shopping window are often treated as a single inquiry, which lessens the impact on your score.