Often when seeing if you qualify for something, such as signing up for a new television provider, or getting an alarm system put in, you will be told that the company must do a credit check, and are told it either “may effect your credit score” or “it won’t affect your credit score”. What does this mean? Why is it that some credit checks affect your credit score and others don’t?

Like a feather hitting the ground, your credit isn’t affected when a soft inquiry is performed.


A soft credit inquiry can happen when you check your credit score, apply for certain loans, when you are sent credit card offers in the mail, or when an employer looks into your credit history. Soft inquiries, generally known as soft pulls, often happen without our knowledge and will not impact your credit score. Typically you are not notified of soft credit inquiries because it is independent of an application for new credit, be aware some lenders will perform soft credit checks to qualify you before performing a hard credit check when finalizing the loan.  Soft pull credit inquiries are not reported to your credit report, which means you can check your credit daily and not worry about affecting your current score!

Check your credit score without affecting it at Identity Insured today.


Like this boxer your credit may have taken a hit when a hard inquiry is performed.


A hard inquiry will often occur when you apply for a new loan, a new home, a collection is being placed on your credit, or a new credit card. Unlike soft pulls, or soft inquiries, that often happen without our knowledge a hard inquiry requires you give the lender consent. Think of the last time you applied for a new home, did you read the entire “Terms & Conditions” before hitting the accept button? Lenders state in the terms of conditions by pressing “accept” or signing on the loan you agree to have your credit checked. Hard credit inquiries make up 10% of your credit score and can affect your credit score if you have too many in a short amount of time! Hard pull credit inquiries will stay on your credit report for two years, and you may see a slight decrease in your credit score when applying for multiple loans in a short amount of time. Frequent hard inquiries in a short period of time can show lenders that you are hard pressed for cash or getting ready to incur a lot of debt. This will make you look like you are not a good candidate for loan approval!

In short, neither type of inquiry will hurt you for long but hard inquiries do have a more lasting effect than a soft inquiry. Remember! Be sure to cross reference and hard credit checks that show up on your credit report, because if you find an unauthorized hard check on your report, you may be at risk for credit card fraud.

Check to see if you have any unauthorized credit inquiries today at Identity Insured.