What is a hard pull on a personal loan application?

Hard pull vs. soft pull: Soft pulls (no score impact): when you check your own credit, when a lender pre-screens you for marketing purposes, or when many lenders run a pre-qualification check before you formally apply. Hard pulls (score impact): when you formally apply for credit - a credit card, mortgage, auto loan, or personal loan. The lender is accessing your full credit file to make a lending decision.

How much does a hard pull hurt? For most borrowers, a single hard inquiry reduces the FICO score by 0-10 points, with the typical impact being 3-5 points. The effect is greater for: borrowers with thin credit files (few accounts), borrowers with a recent history of many inquiries, borrowers at score thresholds where even a small drop matters.

The rate-shopping window: Credit scoring models recognize that borrowers apply to multiple lenders when shopping for the same type of loan. Multiple hard inquiries for the same loan type within a 14-45 day window (the window varies by FICO version) are counted as a single inquiry. This protects you when comparing rates across 3-5 lenders for the same loan.

How long does it stay on your report? Hard inquiries remain visible on your credit report for 24 months. However, they only affect your FICO score for about 12 months, and the impact diminishes over time.

Pre-qualification vs. pre-approval and hard pulls: Pre-qualification typically uses a soft pull (no impact). Pre-approval and full application typically trigger a hard pull. Before applying, ask the lender: 'Will this use a hard pull or a soft pull?' to know what you are authorizing.