WHAT'S THE DIFFERENCE BETWEEN HARD INQUIRIES
AND SOFT INQUIRIES?
A hard inquiry occurs when you apply for a new line of credit, like a credit card or a loan. This type of inquiry only occurs when you give a creditor permission to access a copy of your credit report.
You can have your credit pulled multiple times in a 45 day window and only lose points ONE TIME if you are applying for a mortgage.
You can expect to lose 0-5 points AFTER credit is pulled, BUT you'll usually gain those points back within 30 days. To be approved for a mortgage you must authorize a hard pull.
Hard inquiries can remain on your credit report for up to 2 years. As a rule of thumb you should only apply for new credit when needed.
A soft inquiry, also known as a soft credit check or soft pull typically occurs when you or someone you authorize checks your credit, or when a creditor or lender checks to pre-approve you for an offer.
You can check your own credit or authorize an unlimited number of soft checks or soft pulls and NEVER lose any points.
If you're thinking about buying a home and aren't sure where your credit stands, a soft pull is a great way to access your scores and learn more about your options.
Soft inquiries do not show up on your credit report. Monitoring your credit is important to make sure there are no errors or inaccuracies.