Understanding how credit checks work—and whether they impact your credit score—can help you make smarter financial decisions and protect your credit health.

What Is a Credit Check?

A credit check, also called a credit pull or inquiry, happens when you or another party reviews your credit report. Credit reports contain your personal details, account history, and public records—but not your credit score.

Credit checks are used to assess your creditworthiness. You might check your own report when planning to improve your score. Lenders, landlords, insurers, and even some employers may also review it as part of an application process.

There are two types of credit checks: soft and hard. Knowing the difference—and when each applies—is key to managing your credit wisely.

Soft Credit Checks: No Impact on Your Score

Soft inquiries don't affect your credit score. These checks often happen without your permission and are not tied to an official lending decision. They may occur when:

  • You check your own credit.

  • An employer or landlord performs a background check.

  • A lender pre-qualifies you for a credit card or loan.

These soft checks appear only on your copy of your credit report—not on the version others see—and remain visible to you for up to two years.

Hard Credit Checks: May Impact Your Score

Hard inquiries happen when a lender or other entity needs to make a financial decision, such as when you apply for a credit card, mortgage, or apartment lease. These checks do require your consent and can affect your credit score—often by a few points.

Hard pulls are visible to both you and others who review your report and typically stay on your report for two years. The impact on your FICO® Score, however, usually fades after one year.

Common scenarios that involve hard inquiries include:

  • Applying for a loan or a new line of credit

  • Leasing an apartment

  • Taking out a mortgage or a student loan

Smart Tips for Managing Credit Checks

1. Limit Hard Inquiries
Try to avoid multiple hard checks in a short period. Spacing out credit applications—especially before major purchases—can help preserve your score and show lenders you're not in financial distress.

2. Monitor Your Reports for Errors
Request your free credit reports annually from AnnualCreditReport.com. Check each for errors, including unauthorized hard inquiries. Dispute any inaccuracies directly with the relevant credit bureau.

Pro Tip: Use our free credit monitoring tool to track your score, monitor inquiries, and spot suspicious activity in real-time.

3. Use Preapprovals to Compare Offers
Preapprovals are based on soft checks and let you explore potential rates and terms without affecting your score. Once you find a fit, you can move forward with a formal application and hard pull.

4. Take Advantage of Safe Harbor Periods
When shopping for loans like a mortgage or auto financing, multiple hard inquiries for the same type of credit within a 14- to 45-day window (depending on the scoring model) are usually counted as one inquiry. This allows you to compare options without a significant hit to your score.

Better Credit, Better Outcomes

Whether you're applying for a new job, buying a car, or shopping for a mortgage, your credit score can influence the outcome. Managing credit checks thoughtfully—by spacing out hard pulls and leveraging preapprovals—can help you maintain a strong credit profile. Stronger credit may mean better interest rates, lower insurance premiums, and more financial flexibility.

Need help? Contact us for guidance on managing credit and building your credit score.