What is a soft inquiry?
A soft inquiry happens when your credit is checked for a purpose that isn't a formal credit application: checking your own score, prequalification offers, some employer checks and account reviews by existing lenders. Soft inquiries are visible only to you and do not affect your credit score.
What is a hard inquiry?
A hard inquiry occurs when you formally apply for credit and authorize a lender to review your report to make a decision. Hard inquiries are visible to other lenders and can affect your score.
| Soft inquiry | Hard inquiry | |
|---|---|---|
| Triggered by | Rate checks, prequalification, checking your own credit | Formal credit application |
| Visible to lenders | No | Yes |
| Affects score | No | Usually a small, temporary dip |
| Stays on report | Only on your own copy | Up to 2 years |
| Counted in FICO® scoring | No | Generally for 12 months |
How much does a hard inquiry really hurt?
For most people, a single hard inquiry lowers a FICO® score by fewer than five points, and the effect fades over the following months. Several applications in a short period have a bigger combined effect and can signal financial stress to lenders.
Credit scoring models group multiple inquiries for mortgages, auto loans and student loans within a short shopping window as one inquiry. Personal loans don't always receive that treatment, which is why comparing personal loan offers through soft-pull prequalification is the smarter approach.
Check your rate with lenders that use soft pulls, then submit one formal application to the offer you choose. You get the comparison without stacking hard inquiries.Lending tip from the Loanify Editorial Team
How Loanify uses soft and hard inquiries
Checking your Loanify rate uses a soft inquiry, so you can see your estimated APR and payment with no effect on your score. A hard inquiry may occur only if you accept an offer and continue with the loan. You'll know before that happens. See how Loanify works for each step.
Frequently asked questions
Does checking my Loanify rate show up on my credit report?
It appears only on your own copy of your report as a soft inquiry. Other lenders can't see it, and it doesn't affect your score.
Can I remove a hard inquiry?
Only if it was unauthorized or an error. You can dispute it with the credit bureau.
More guides
How a personal loan affects your credit score
Debt-to-income ratio explained
What is an installment loan? How Loanify loans work
About the Loanify Editorial Team
Our guides are researched, written and fact-checked against federal lending rules, CFPB guidance and current loan terms. Every payment example is calculated with the standard amortization formula. Read our editorial policy.