What Is a Credit Inquiry?

What Is a Credit Inquiry?

A credit inquiry, also called a credit check or credit pull, happens when someone requests to review your credit report. Lenders, landlords, employers and other entities may request your credit information to assess your financial responsibility and creditworthiness.

Credit inquiries fall into two categories: soft inquiries and hard inquiries. The type of inquiry that appears on your credit report depends on who is requesting your information and why.

Soft Inquiry

A soft inquiry is when you check your own credit or when a company checks your credit for purposes other than a credit application you initiated.

In most cases, you don't need to authorize a soft inquiry, and each one remains on your credit reports for up to two years. However, they don't affect your credit score. Common examples of soft inquiries include:

• Checking your own credit report or credit score
• Preapproved credit card or loan offers
• Employment background checks
• Landlord credit checks
• Insurance quotes
• Account reviews by current creditors

Hard Inquiry

A hard inquiry is when a lender or creditor checks your credit report after you apply for credit. That includes credit cards, personal loans, auto loans, mortgage loans, private student loans and many other forms of credit.

Hard inquiries require your permission and can temporarily lower your credit score. The good news is that impact is typically minimal—usually less than five points—and diminishes over time.

Do Multiple Inquiries Hurt Your Credit Score?

Multiple hard inquiries can have a cumulative effect on your credit score, particularly if they occur within a short period.

The good news is that credit scoring models recognize when you're rate shopping for a single loan. When you submit loan applications to multiple lenders for a mortgage, auto loan or student loan within a specific time window, the inquiries are typically counted as one inquiry for scoring purposes.

Tip: FICO provides a 45-day window during which multiple inquiries for mortgages, auto loans or student loans count as a single inquiry. Older FICO versions use a 14-day window. VantageScore^® uses a rolling 14-day window for all loan types. Keep in mind, though, that these protections apply only to inquiries for the same type of loan and don't extend to credit card applications.

How to Check Your Credit Report for Inquiries

You can view inquiries on your credit reports by obtaining your report from each of the three major credit bureaus. All three credit bureaus provide free weekly reports through AnnualCreditReport.com. You can access your Experian credit report anytime for free.

When you review your credit report, you'll see your hard and soft inquiries separated.

Tip: Checking your own credit doesn't hurt your credit score and is always considered a soft inquiry.

What to Do if You Don't Recognize an Inquiry

If you see a hard inquiry on your credit report that you don't recognize, here's what you can do to address it:

1. Review the inquiry details. Check the date and the name of the company that made the inquiry. Sometimes companies use different business names that you might not immediately recognize.
2. Consider recent applications. Think about whether you applied for any credit, insurance or services around the date shown. Applications for apartment rentals can sometimes result in hard inquiries.
3. Contact the company. If you're still unsure, contact the company listed on the inquiry. They can provide information about why they checked your credit and whether you authorized it.
4. File a dispute. If you determine that you didn't authorize the inquiry, you have the right to dispute it with the credit bureau on whose report the information appears.
5. Check for identity theft. Unauthorized inquiries can be a sign of identity theft. If you suspect fraud, you have the right to place a fraud alert or credit freeze on your credit reports and file a report with the Federal Trade Commission at IdentityTheft.gov.

The credit bureau will investigate your dispute, typically within 30 days. If the inquiry is found to be unauthorized or in error, it will be removed from your credit report.

Frequently Asked Questions

Learn more: Does Checking Your Credit Score Lower It?

Monitor Your Credit to Stay Informed

Regularly monitoring your credit report allows you to track inquiries, spot potential errors and catch signs of identity theft early. You can get your free Experian credit report and FICO^® Score^Θ to stay on top of your credit health throughout the year. Staying informed can help you take control of your credit and work toward your financial goals with confidence.