What Are Credit Inquiries: Hard Vs Soft Pulls

May 1, 2024

minute read

What Are Credit Inquiries: Hard Vs Soft Pulls

"Unveiling Credit Inquiries: Understanding Hard and Soft Pulls on Your Credit Report"

Written by

Sophia Lin

Sophia Lin merges her economic expertise and credit counseling experience to demystify financial concepts, offering practical advice on debt management and credit building. Her empowering approach motivates readers towards financial independence and resilience.

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What is a Credit Inquiry?

A credit inquiry, also known as a credit pull, is akin to a financial background check, delving into your credit history. There are two primary types of inquiries: hard inquiries and soft inquiries.

1. Hard Inquiry

Definition: A hard inquiry occurs when a lender scrutinizes your credit history to assess your creditworthiness.

**When is it Made? **Typically, hard inquiries are triggered when applying for loans, credit cards, mortgages, or car financing.

Impact on Score: A hard inquiry can lead to a slight and temporary reduction in your credit score. This effect diminishes after twelve months and completely vanishes from your report after two years.

Duration on Credit Report: A hard inquiry remains on your credit report for a duration of two years.

2. Soft Inquiry

Definition: A soft inquiry takes place when your credit is checked for non-lending purposes, such as pre-approval offers or by potential employers.

When is it Made? Common scenarios include checks by landlords, employers, insurance companies, or for pre-approved credit offers.

Impact on Score: Soft inquiries have no impact on your credit score, and they are only visible to you.

Inquiries & the Three Credit Bureaus

Credit inquiries are managed by three major credit bureaus: TransUnion, Equifax, and Experian. Banks typically pull a credit report from one of these agencies when making credit decisions.

Error on Credit Report

If you discover an error related to a credit inquiry, it is advisable to contact the bank or credit bureau promptly to dispute and rectify the mistake.

Credit Inquiries During Rate Shopping

When actively shopping for rates, multiple hard inquiries are usually treated as a single inquiry by the FICO scoring model, provided they occur within a 45-day window. This provision aims to accommodate consumers seeking the best rates without unduly impacting their credit scores.

Understanding the nuances of credit inquiries empowers individuals to make informed financial decisions while managing and maintaining a healthy credit profile.

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	REPORTS	BACK DATES
Amex	Yes	No
Barclay	Yes	Yes
Bank of America	Yes	Yes
Chase	Sometimes	Yes
Citi	Yes	Yes
Capital One	Yes	Yes
Discover	Yes	Yes
HSBC	No	No
US Bank	Yes	Yes

Sample Caption
Bank Name	Reports	Back Dates
Amex	✅	❌
Barclay	✅	✅
Bank of America	✅	✅
Chase	Sometimes	✅
Citi	✅	✅
Capital One	✅	✅
Discover	✅	✅
HSBC	❌	❌
US Bank	✅	✅

Ever wondered why lenders check your credit? A credit inquiry helps them see your borrowing history, either slightly denting your score (hard pull) or not at all (soft pull).

Sample Caption
Bank	Minimum Payment Calculation
American Express Personal	The greater of these: $40, 2% of the balance excluding interest and fees, 1% of your balance plus interest and fees
American Express Business	The greater of these: $35, For a balance of $0-$25,000: 1% of the balance plus monthly interest and fees, For a balance of $25,000-$75,000: 5% of the balance plus monthly interest and fees, For a balance over $75,000: 10% of the balance plus monthly interest and fees*
Bank Of America	The greater of these: $25, or 1% of the full balance plus the monthly interest and fees
Barclay Bank	The greater of these: $27, or 1% of the full balance plus the monthly interest and fees
Capital One	The greater of these: $25, or 1% of the full balance plus the monthly interest and fees
Chase	The greater of these: $25, or 1% of the full balance plus the monthly interest and fees
Citi	The greater of these: $25 or 1% of the full balance plus the monthly interest and fees, or 1.5% of the full balance
Discover	The greater of these: $35, or 2% of the full balance or $20 plus the monthly interest and fees
Santander	The greater of these: $25, or 1% of the full balance plus the monthly interest and fees
Synchrony	The greater of these: $25, or $35 if you had any late payments within the last six months, or 1% of your full balance plus the monthly interest and fees
Us Bank	The greater of these: $30, or 1% of your full balance plus the monthly interest and fees
Wells Fargo	The greater of these: $15, or 1% of the full balance plus the monthly interest and fees

Sample Caption
Bank Name	Reports	Back Dates
Amex	✅	❌
Barclay	✅	✅
Bank of America	✅	✅
Chase	Sometimes	✅
Citi	✅	✅
Capital One	✅	✅
Discover	✅	✅
HSBC	❌	❌
US Bank	✅	✅

Sample Caption
Rating	Credit Score Range	Description
Poor	<580	This credit score is well below the average score of U.S. consumers and demonstrates to lenders that the borrower may be a risk.
Fair	580-669	This credit score is below the average score of U.S. consumers, though many lenders will approve loans with this score.
Good	670-739	This credit score is near or slightly above the average of U.S. consumers and most lenders consider this a good score.
Very Good	740-799	This credit score is above the average of U.S. consumers and demonstrates to lenders that the borrower is very dependable.
Exceptional	800+	This credit score is well above the average score of U.S. consumers and clearly demonstrates to lenders that the borrower is an exceptionally low risk.

Sample Caption
Very Poor	Poor	Average	Good	Very Good	Excellent
579	619	679	719	779	800+
578	618	678	718	778	799
577	617	677	717	777	798
576	616	676	716	776	797
575	615	675	715	775	796
574	614	674	714	774	795
573	613	673	713	773	794
572	612	672	712	772	793
571	611	671	711	771	792
570	610	670	710	770	791
569	609	669	709	769	790
568	608	668	708	768	789
567	607	667	707	767	788
566	606	666	706	766	787
565	605	665	705	765	786
564	604	664	704	764	785
563	603	663	703	763	784
562	602	662	702	762	783
561	601	661	701	761	782
560	600	660	700	760	781
559	599	659	699	759	780
558	598	658	698	758
557	597	657	697	757
556	596	656	696	756
555	595	655	695	755
554	594	654	694	754
553	593	653	693	753
552	592	652	692	752
551	591	651	691	751
550	590	650	690	750
549	589	649	689	749
548	588	648	688	748
547	587	647	687	747
546	586	646	686	746
545	585	645	685	745
544	584	644	684	744
541	583	643	683	743
540	582	642	682	742
539	581	641	681	741
538	580	640	680	740
537		639		739
536		638		738
535		637		737
534		636		736
533		635		735
532		634		734
531		633		733
530		632		732
529		631		731
528		630		730
527		629		729
526		628		728
525		627		727
524		626		726
523		625		725
522		624		724
521		623		723
520		622		722
519		621		721
518		620		720
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