Credit inquiries

Hard vs. Soft Credit Inquiries: What’s the Difference?

Hard credit inquiry

  • Usually occurs when applying for credit or financing
  • May temporarily lower a credit score
  • Visible to other lenders reviewing the credit report
  • Can remain on a credit report for up to two years
Example: Applying for a solar panel loan

Soft credit inquiry

  • Often occurs during preliminary eligibility or prequalification checks
  • Does not affect a credit score
  • Not visible to lenders evaluating a credit application
  • Can occur during certain promotional or account-review processes
Example: Checking preliminary financing offers