{"id":486,"date":"2021-07-01T20:13:16","date_gmt":"2021-07-01T20:13:16","guid":{"rendered":"https:\/\/www.nerdwallet.com\/ca\/?page_id=486"},"modified":"2024-05-02T15:17:46","modified_gmt":"2024-05-02T22:17:46","slug":"what-is-a-soft-credit-inquiry","status":"publish","type":"page","link":"https:\/\/www.nerdwallet.com\/ca\/personal-finance\/what-is-a-soft-credit-inquiry","title":{"rendered":"How Do Credit Inquiries Work?"},"content":{"rendered":"\n

When lenders or creditors want to check your credit history before issuing you a loan or credit card, they perform a credit inquiry, also known as a credit check. Based on the information they find, including your credit score, they\u2019ll determine how creditworthy you are and whether to approve your application.<\/p>\n\n\n\n

However, there are two types of credit inquiries, commonly referred to as soft and hard. Hard inquiries will affect your credit score, while soft inquiries won\u2019t make a difference.<\/p>\n\n\n\n

What is a soft credit inquiry?<\/h2>\n\n\n\n

A soft credit inquiry, sometimes referred to as a “non-credit related inquiry,” allows a qualified party to see your payment history, the loans and lines of credit you currently have open, and your credit utilization ratio<\/a>, among other things.<\/p>\n\n\n\n

A soft credit score is performed for reasons other than applying for credit, such as when you apply for a lease or check your own credit report<\/a>. A soft credit check does not have a negative impact on your credit score.<\/p>\n\n\n\n

Some lenders may perform soft credit inquiries as a quick way to see if you’re generally the type of borrower who might qualify for a loan<\/a> or credit card<\/a>. For this reason, a soft credit inquiry may be referred to as “pre-qualification.” Even if you’re prequalified, hard credit inquiry is typically required in order to officially be approved for a loan or line of credit.<\/p>\n\n\n\n

What is a hard credit inquiry?<\/h2>\n\n\n\n

A hard credit inquiry is a formal review of your credit report<\/a> and is typically a mandatory step any time you’re applying for credit. Hard credit inquiries provide lenders with a detailed look at your credit history, including your credit score, length of credit history, types of credit you\u2019re using, and more. <\/p>\n\n\n\n

A hard inquiry does have a temporary negative impact on your credit score, however multiple applications for credit within the same time frame \u2014 like 45 days \u2014 are counted as a single inquiry. This allows people to shop around for some products, like mortgages and car loans, without significant damage to their credit score.<\/p>\n\n\n\n

Some situations where a hard inquiry is performed include:<\/p>\n\n\n\n