| Criterion | Soft Inquiry | Hard Inquiry |
|---|---|---|
| Definition | A soft inquiry is a credit check that is not typically shared with lenders or other third parties and is generally not used in credit scoring calculations. | A hard inquiry is a credit check that is recorded on a credit report and is typically shared with lenders and other authorized parties; it may be considered by some credit scoring models. |
| Who initiates | Often initiated by the consumer themselves, such as checking one's own credit report, or by a company for account review or pre-screening purposes. | Typically initiated by a lender, landlord, or other business when a consumer applies for new credit, a loan, or certain rental agreements. |
| Consumer consent | May occur without the consumer's direct request in certain permissible-purpose situations, such as account monitoring by an existing creditor, or with the consumer's request for their own report. | Generally requires the consumer's authorization, often in the form of a signed application or verbal permission, as part of a credit application. |
| Visibility | Usually visible only to the consumer and the entity that made the inquiry; not typically displayed to other lenders or third parties. | Visible to the consumer and to lenders or other authorized parties who access the credit report for permissible purposes. |
| Credit scoring treatment | Generally excluded from credit scoring calculations, so it does not directly affect a credit score. | May be included in credit scoring calculations and can have a minor effect on a credit score, depending on the scoring model. |
| Typical examples | Checking your own credit report, pre-approved credit offers, account reviews by existing creditors, and some employment or insurance checks where permitted. | Applying for a credit card, mortgage, auto loan, personal loan, or a rental apartment where a credit check is required. |
| Persistence on report | May appear on a consumer's credit report for a period of time, but is often not shared with lenders and may be removed after a set period. | Typically remains on a credit report for a defined period, such as two years, though its effect on scoring may diminish over time. |
Frequently asked questions
Can a soft inquiry become a hard inquiry?
No, a soft inquiry does not become a hard inquiry. The two are distinct categories based on the purpose of the check and the consumer's authorization. A soft inquiry remains soft even if the consumer later applies for credit with the same company.
Do soft inquiries appear on a credit report?
Yes, soft inquiries may appear on a consumer's credit report, but they are usually visible only to the consumer. They are not typically shared with lenders or other third parties and are generally excluded from credit scoring calculations.
How long do hard inquiries stay on a credit report?
Hard inquiries typically remain on a credit report for a defined period, such as two years. However, their effect on credit scores may be limited to a shorter window, depending on the scoring model used.
Can I check my own credit without creating a hard inquiry?
Yes, checking your own credit report is generally considered a soft inquiry. Under federal law such as the Fair Credit Reporting Act, consumers are entitled to obtain their credit reports from the national credit reporting companies, and these self-checks do not typically appear as hard inquiries to lenders.
Do all lenders treat hard inquiries the same way?
No, lenders and scoring models may treat hard inquiries differently. Some may place more emphasis on recent inquiries, while others may consider the overall credit profile. The Fair Credit Reporting Act and other laws govern how inquiries are reported, but underwriting policies vary.