How do I know if my credit is hard or soft?

Summary of Article

In this article, we will explore the difference between hard and soft credit inquiries and their impact on your credit score. We will also discuss examples of each type of inquiry and how long they stay on your credit report. Additionally, we will address common questions regarding the accuracy of credit scores and who receives the credit for soft inquiries. Let’s dive in!

1. What is considered a hard credit check?
A hard inquiry, or a “hard pull,” occurs when you apply for a new line of credit, such as a credit card or loan. It means that a creditor has requested to look at your credit file to determine how much risk you pose as a borrower. Hard inquiries show up on your credit report and can affect your credit score.

2. What is an example of a hard inquiry?
A hard inquiry, also referred to as a hard pull or a hard credit check, means the lender reviews your report in detail to help determine your creditworthiness. Here are more examples of situations that usually result in a hard inquiry: Applying for a mortgage, applying for personal loans and auto loans.

3. What is the difference between hard and soft credit?
Credit pulls are when someone — even you — checks your credit. Lenders run hard checks when you officially apply for credit, which can cause your credit score to drop slightly. Soft checks, on the other hand, are for pre-approvals or when you check your own credit, and they don’t affect your credit score.

4. How long does a soft credit last?
Soft inquiries will only stay on your credit reports for 12-24 months. And remember: Soft inquiries won’t affect your credit scores. Lenders may be concerned if you have too many hard inquiries on your credit report within a short period of time. However, there are some exceptions to this.

5. How many hard hits affect credit score?
However, multiple hard inquiries can deplete your score by as much as 10 points each time they happen. People with six or more recent hard inquiries are eight times as likely to file for bankruptcy than those with none. That’s way more inquiries than most of us need to find a good deal on a car loan or credit card.

6. How accurate is credit karma?
Here’s the short answer: The credit scores and reports you see on Credit Karma come directly from TransUnion and Equifax, two of the three major consumer credit bureaus. The credit scores and reports you see on Credit Karma should accurately reflect your credit information as reported by those bureaus.

7. What are examples of soft inquiries?
For example, a soft inquiry occurs when: You check your own credit, one of your current creditors checks your credit, you apply for a soft-pull preapproval with a creditor, a company checks your credit to see if you qualify for preapproval offers.

8. How bad is 3 hard inquiries?
There’s no such thing as “too many” hard credit inquiries, but multiple applications for new credit accounts within a short time frame could point to a risky borrower. Rate shopping for a particular loan, however, may be treated as a single inquiry and have minimal impact on your creditworthiness.

9. Who gets the soft credit?
A soft credit occurs when a donor makes a gift but credits someone else for it. The hard credit goes to the account or donor. However, a soft credit goes to the one who receives the credit for it.

10. How long does hard credit last?
Hard inquiries serve as a timeline of when you have applied for new credit and may stay on your credit report for two years, although they typically only affect your credit scores for one year. Depending on your unique credit history, hard inquiries could indicate different things to different lenders.