Hard Pull vs. Soft Pull

Full definition

Hard and soft credit inquiries are the two types of records created when a party accesses your credit report. They differ in who sees them, how they affect your score, and when they occur. Hard inquiries (hard pulls): When they occur: When you formally apply for credit - personal loans, mortgages, credit cards, auto loans, or some apartment applications. Who can see them: Lenders reviewing your credit report can see hard inquiries from the past 2 years. You can see them on your credit report. Score impact: A single hard inquiry typically reduces FICO scores by 5-10 points. The impact fades after 12 months and the inquiry disappears from the report after 24 months. Multiple inquiries: For the same type of loan (mortgage, auto, student loan, and now personal loans under newer FICO versions) inquiries within a 14-45 day window are 'deduplicated' and counted as one inquiry. Rate shopping for personal loans within this window is relatively safe. Soft inquiries (soft pulls): When they occur: Pre-qualification checks (when a lender checks if you might qualify without you formally applying). Employer background checks. Existing lender account reviews. You checking your own credit. Credit card pre-approval mailings. Who can see them: Only you see soft inquiries on your credit report. Lenders reviewing your credit cannot see soft pulls from other parties. Score impact: Zero. Soft pulls never affect credit scores. Pre-qualification vs. pre-approval: Most lenders now offer a soft-pull pre-qualification that generates estimated rate offers. This is the correct first step when rate shopping - compare pre-qualification offers from multiple lenders without any credit score impact, then formally apply (hard pull) only with the best option.

• FICO score
• Pre-qualification
• Rate Shopping