Key takeaways
- Hard inquiries happen when you apply for credit and can lower your score a little.
- Soft inquiries, like checking your own credit or prescreened offers, don’t affect your score.
- Several mortgage inquiries within 45 days count as one; similar rules often apply to auto loans.
- Only apply for credit you need, and space applications out.
- A hard inquiry you don’t recognize can be a sign of identity theft.
“Will checking my credit hurt my score?” It depends on who’s checking and why. Credit checks, called inquiries, come in two types. One can nudge your score down a bit; the other has no effect at all.
Side by side
| Hard inquiry | Soft inquiry | |
|---|---|---|
| When it happens | You apply for credit, like a card, loan or mortgage | You check your own credit, prescreened offers, account reviews |
| Affects your score? | Yes, usually a small, temporary effect | No |
| Who sees it on your report | Lenders and you | Only you |
Source: the CFPB.
Hard inquiries
According to the CFPB, hard inquiries are usually made by lenders after you apply for credit, and they can affect your score because most scoring models look at how recently and how often you apply. Applying for a lot of credit in a short time can make you look riskier to lenders.
The effect of a single hard inquiry is usually small and fades over time.
Soft inquiries
Soft inquiries don’t affect your score. They include:
- Checking your own credit reports or scores.
- Prescreened credit offers.
- Reviews of your existing accounts by your current lenders.
- Some employment screening.
The CFPB explains that soft inquiries are shown only to you, not to lenders who pull your report. See also the CFPB’s answer on inquiries that don’t affect your score.
Rate shopping: why comparing loans is OK
If you’re shopping for a mortgage, the CFPB explains that multiple credit checks from mortgage lenders within 45 days are recorded as a single inquiry for scoring. The CFPB says auto loan shopping is generally treated similarly when done within a short window; see its answer on shopping for an auto loan.
So comparing offers for the same type of loan in a short period is fine. Spreading the shopping over months, or applying for different types of credit at once, can count as several inquiries.
Credit cards are different
Applying for several credit cards usually means several hard inquiries, each counted separately. Many card issuers offer a “check if you prequalify” tool that uses a soft inquiry, which can help you avoid applications that are likely to be declined.
Inquiries you don’t recognize
A hard inquiry for credit you never applied for can be a sign that someone used your information. Check your free reports at AnnualCreditReport.com. If you see one:
- Contact the company that made the inquiry to ask about it.
- If it’s fraud, go to IdentityTheft.gov for a recovery plan.
- Consider a credit freeze or fraud alert.
- Dispute the inquiry with the credit bureau. See how to dispute an error on your credit report.
Tips
- Check your own credit as often as you like. It’s a soft inquiry.
- Apply only for credit you need, and space out applications.
- Use prequalification tools before applying for cards.
- Do rate shopping for a loan within a short window.
The bottom line
Soft inquiries never hurt your score. Hard inquiries can lower it slightly for a while, but shopping around for one mortgage or auto loan within a short window counts as one. Apply carefully, and watch for inquiries you didn’t make. For the bigger picture, see what is a good credit score.
Sources: CFPB: what is a credit inquiry · CFPB: what kind of credit inquiry has no effect on my credit score · CFPB: what happens when a mortgage lender checks my credit · CFPB: shopping for an auto loan