Takeaways
- Soft credit inquiries determine your initial eligibility for credit products.
- Unlike hard inquiries, soft credit inquiries do not impact your credit score.
- Credit card companies run soft inquiries to preapprove potential card members.
- Soft credit pulls are done behind the scenes and don't live on your credit report.
- You or your bank can initiate soft credit inquiries to determine eligibility for personal loans, credit cards, auto loans, and mortgages.
When you apply for a credit card or personal loan, lenders usually check your credit report to evaluate your creditworthiness. This process is known as a credit check or credit inquiry. However, not all credit checks are the same. There are two types: a soft credit inquiry and hard credit inquiry.
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What Is a Soft Credit Inquiry?
A soft credit inquiry occurs when your credit report is checked, even if you are not officially applying for new credit. These checks can happen for several reasons, such as when a lender pre-approves you for an offer or when you check your own credit score. Soft inquiries do not affect your credit score and are not visible to potential lenders.
Examples of soft inquiries include:
- Checking your own credit report.
- Pre-qualification offers from lenders.
- Background checks by employers.
- Credit monitoring services.
With soft inquiries, lenders and businesses can gather basic credit information about you without initiating a formal credit application process.
How a Soft Credit Inquiry Works
Soft credit inquiries occur when a credit check is necessary, but not to make a lending decision. When a company or individual performs a soft inquiry, they access a limited version of your credit report, focusing on your general credit behavior rather than your detailed credit history.
Banks and credit unions might want to investigate how you have historically managed your debt. They can use a soft credit inquiry to see if you pay off your debts, observe your credit utilization, or if you have a high debt-to-income ratio.
For example, suppose you sign up to get preapproved for a cash back credit card. In that case, the lender may conduct a soft inquiry to determine if you meet their basic eligibility criteria. If you pass this initial hurdle, you need to officially apply for the credit card. At this point, a hard credit inquiry will appear on your credit report if you proceed with the application.
You can also request your credit report from each of the three major credit bureaus - Experian, Equifax, or TransUnion - once per year from Annualcreditreport.com.
Soft Inquiry vs. Hard Credit Inquiry
The key difference between soft and hard inquiries is how they impact your credit score. Let’s take a look at how it works for each one:
| Soft Inquiry | Hard Inquiry |
|---|---|
| Does not affect your credit score | Can lower your credit score slightly (between 5 -10 points) |
| Not visible to lenders reviewing your credit | Visible to lenders and stays on your report for up to 2 years |
| Often used for background checks, pre-approvals, or personal checks. | Occurs when you apply for credit products: mortgage, car loan, or credit card |
Pros of a Soft Credit Inquiry
Soft credit inquiries have many benefits that can reassure you and boost your confidence in managing your credit. They include:
- No Impact on Credit Score: You can check your own credit as often as you want without affecting your score. (Read more about your FICO credit score).
- Pre-Approval Opportunities: Lenders can assess your eligibility without a formal application. (Read about how to apply for a personal loan).
- Better Monitoring: Soft pulls allow you to monitor your credit for errors or identity theft without penalty. (Learn how to review your credit report).
- Employer Flexibility: Employers can review your credit for background checks without affecting your financial profile. Background checks usually happen when you are trying to get a new job.
Cons of a Soft Credit Inquiry
Although soft inquiries are harmless to your score, there are a few things to keep in mind:
- Limited Information: Soft inquiries do not give lenders a complete picture of your credit history. (Read more about credit age).
- Unsolicited Offers: Soft pulls may result in pre-approved credit card or loan offers, which can be annoying or misleading. (Read more about the 5 C’s of Credit).
- No Impact on Loan Decisions: A soft inquiry alone cannot get you approved for credit—you must still go through a hard inquiry. (Learn how to boost your credit score quickly).
How Many Points Do You Lose on a Hard Credit Inquiry?
A hard credit inquiry typically reduces your credit score by 10 points or less. FICO states that for most people, it will impact your score 5 points or fewer.[1] The effect is temporary for most people, and scores recover within a few months if no additional inquiries are requested.
Multiple hard inquiries can have a more significant impact quickly. However, if you are rate-shopping for a mortgage or auto loan, credit scoring models like FICO often group inquiries within a 30- to 45-day window into a single inquiry to minimize the score impact.
To protect your credit score:
- Limit how often you apply for new credit.
- Space out applications for different types of credit.
- Monitor your credit report regularly.
Smart Summary
A soft credit inquiry is a type of credit check that does not impact your credit score and helps streamline pre-approvals, personal credit checks, or background reviews. Unlike hard inquiries, which can lower your score slightly and are visible to lenders, soft inquiries offer a risk-free way to monitor your credit health. Understanding the difference between the two can help you manage your credit wisely and avoid unnecessary score drops when applying for personal loans or credit cards.
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(1) FICO. What Are Credit Inquiries and How Do They Affect Your FICO® Score? Last Accessed May 1, 2025.
