Every time your credit score or credit report is checked, the inquiry is classified as either a soft inquiry or a hard inquiry. Understanding the difference between the soft inquiry vs hard inquiry is crucial because only one of them can impact your credit score.
This blog explains how each type works, when they occur, how they affect your credit worthiness, and how you can avoid unnecessary hard inquiries.
| Feature | Soft Inquiry | Hard Inquiry |
| Affects Credit Score? | No | Yes (3–10 points drop) |
| Visibility | Only you can see it | Lenders can see it |
| Purpose | Background checks, pre-approval, personal checks | Loan or credit card applications |
| Duration on Report | Not applicable | Up to 24 months |
| Risk Level | Zero | Multiple inquiries increase rejection chances |
A credit score is a 3-digit number, typically ranging from 300 to 900, that represents an individual’s creditworthiness and likelihood to repay debt. Based on credit report data like payment history and debt levels, lenders use this score to determine loan eligibility and interest rates.
A higher score (generally 750+) indicates lower risk to lenders.
| Component | Weightage | What It Means |
|---|---|---|
| Payment History | ~35% | Timely repayment of loans and credit card bills |
| Amounts Owed | ~30% | Total outstanding debt and credit utilization ratio |
| Credit History Length | ~15% | Age of oldest and newest credit accounts |
| Credit Mix | ~10% | Variety of credit types (cards, home loan, auto loan, etc.) |
| New Credit | ~10% | Number of recent hard inquiries and new accounts |
| Area | Impact |
|---|---|
| Loan Approvals | Higher scores increase chances of faster approvals |
| Interest Rates | Better scores help secure lower interest rates |
| Credit Limits | Higher limits on credit cards |
| Other Uses | Can affect rental approvals, insurance premiums, and sometimes employment checks |
| Credit Score Range | Category |
|---|---|
| 800 – 850 | Excellent |
| 740 – 799 | Very Good |
| 670 – 739 | Good |
| 580 – 669 | Fair |
| 300 – 579 | Poor |
| Credit Bureau | Role |
|---|---|
| CIBIL | Most widely used credit bureau in India |
| Equifax | Provides credit scores and reports |
| Experian | Offers consumer and business credit data |
| CRIF High Mark | Focuses on retail and microfinance credit data |
A credit inquiry (also called a “credit check” or “credit pull”) occurs when an individual or a lender views your credit report from a bureau like CIBIL, Experian, CRIF, or Equifax. Inquiries help lenders evaluate your credit behaviour, repayment potential and borrowing patterns.
A soft inquiry is a background credit check that does not affect your credit score. Soft inquiries do not indicate any credit-seeking behaviour and are often used for pre-approvals or personal checks.
No. Soft inquiries are not visible to lenders and have zero impact on your credit score because they don’t represent a new loan request.
A hard inquiry (or hard pull) occurs when you formally apply for a loan or credit card, and the lender pulls your credit report from the bureau. Hard inquiries affect your credit score.
A hard inquiry indicates that you are actively seeking credit. Multiple hard inquiries in a short span can reduce your score because it signals high credit hunger or potential financial stress.
Impact: Each hard inquiry may reduce the score by 3–10 points, depending on your credit profile.
| Aspect | Soft Inquiry | Hard Inquiry |
|---|---|---|
| Impact on Credit Score | No impact on credit score | Temporarily reduces credit score |
| Visibility on Credit Report | Visible only to you | Visible to lenders and used in credit decisions |
| When Lenders Perform It | Pre-approved offers, background checks, credit score checks | Loan applications, credit card applications, credit limit increase requests |
| Consumer Impact | Completely safe, no risk | Too many hard inquiries may lead to loan or card rejections |
Generally, a hard inquiry reduces your score by 3–10 points. If multiple inquiries occur within 30 days, the impact may be higher, especially for mixed or limited credit profiles. Individuals with thin credit history may see a greater drop than those with long and stable credit records.
No. Checking your score is a soft inquiry and does not affect your credit score.
Hard inquiries signal active credit seeking, which can indicate financial stress, so the score dips temporarily.
More than 3–4 hard inquiries within 90 days may negatively affect loan approval chances.
If a hard inquiry was unauthorized or incorrect, you can dispute it with the credit bureau.
Yes. Any formal credit application will trigger a hard inquiry.
Yes, but only you can see them. Lenders cannot.
At least 30–45 days to avoid repeated hard pulls affecting your score.
Every time your credit score or credit report is checked, the inquiry is classified as either a soft inquiry or a hard inquiry. Understanding the difference between the soft inquiry vs hard inquiry is crucial because only one of them can impact your credit score.
This blog explains how each type works, when they occur, how they affect your credit worthiness, and how you can avoid unnecessary hard inquiries.
| Feature | Soft Inquiry | Hard Inquiry |
| Affects Credit Score? | No | Yes (3–10 points drop) |
| Visibility | Only you can see it | Lenders can see it |
| Purpose | Background checks, pre-approval, personal checks | Loan or credit card applications |
| Duration on Report | Not applicable | Up to 24 months |
| Risk Level | Zero | Multiple inquiries increase rejection chances |
A credit score is a 3-digit number, typically ranging from 300 to 900, that represents an individual’s creditworthiness and likelihood to repay debt. Based on credit report data like payment history and debt levels, lenders use this score to determine loan eligibility and interest rates.
A higher score (generally 750+) indicates lower risk to lenders.
| Component | Weightage | What It Means |
|---|---|---|
| Payment History | ~35% | Timely repayment of loans and credit card bills |
| Amounts Owed | ~30% | Total outstanding debt and credit utilization ratio |
| Credit History Length | ~15% | Age of oldest and newest credit accounts |
| Credit Mix | ~10% | Variety of credit types (cards, home loan, auto loan, etc.) |
| New Credit | ~10% | Number of recent hard inquiries and new accounts |
| Area | Impact |
|---|---|
| Loan Approvals | Higher scores increase chances of faster approvals |
| Interest Rates | Better scores help secure lower interest rates |
| Credit Limits | Higher limits on credit cards |
| Other Uses | Can affect rental approvals, insurance premiums, and sometimes employment checks |
| Credit Score Range | Category |
|---|---|
| 800 – 850 | Excellent |
| 740 – 799 | Very Good |
| 670 – 739 | Good |
| 580 – 669 | Fair |
| 300 – 579 | Poor |
| Credit Bureau | Role |
|---|---|
| CIBIL | Most widely used credit bureau in India |
| Equifax | Provides credit scores and reports |
| Experian | Offers consumer and business credit data |
| CRIF High Mark | Focuses on retail and microfinance credit data |
A credit inquiry (also called a “credit check” or “credit pull”) occurs when an individual or a lender views your credit report from a bureau like CIBIL, Experian, CRIF, or Equifax. Inquiries help lenders evaluate your credit behaviour, repayment potential and borrowing patterns.
A soft inquiry is a background credit check that does not affect your credit score. Soft inquiries do not indicate any credit-seeking behaviour and are often used for pre-approvals or personal checks.
No. Soft inquiries are not visible to lenders and have zero impact on your credit score because they don’t represent a new loan request.
A hard inquiry (or hard pull) occurs when you formally apply for a loan or credit card, and the lender pulls your credit report from the bureau. Hard inquiries affect your credit score.
A hard inquiry indicates that you are actively seeking credit. Multiple hard inquiries in a short span can reduce your score because it signals high credit hunger or potential financial stress.
Impact: Each hard inquiry may reduce the score by 3–10 points, depending on your credit profile.
| Aspect | Soft Inquiry | Hard Inquiry |
|---|---|---|
| Impact on Credit Score | No impact on credit score | Temporarily reduces credit score |
| Visibility on Credit Report | Visible only to you | Visible to lenders and used in credit decisions |
| When Lenders Perform It | Pre-approved offers, background checks, credit score checks | Loan applications, credit card applications, credit limit increase requests |
| Consumer Impact | Completely safe, no risk | Too many hard inquiries may lead to loan or card rejections |
Generally, a hard inquiry reduces your score by 3–10 points. If multiple inquiries occur within 30 days, the impact may be higher, especially for mixed or limited credit profiles. Individuals with thin credit history may see a greater drop than those with long and stable credit records.
No. Checking your score is a soft inquiry and does not affect your credit score.
Hard inquiries signal active credit seeking, which can indicate financial stress, so the score dips temporarily.
More than 3–4 hard inquiries within 90 days may negatively affect loan approval chances.
If a hard inquiry was unauthorized or incorrect, you can dispute it with the credit bureau.
Yes. Any formal credit application will trigger a hard inquiry.
Yes, but only you can see them. Lenders cannot.
At least 30–45 days to avoid repeated hard pulls affecting your score.
A contributor to the Finanjo blog, where I share insightful and easy-to-understand content focused on educating readers about finance. With a clear and approachable writing style, I simplify complex topics to make them more understandable.
A contributor to the Finanjo blog, where I share insightful and easy-to-understand content focused on educating readers about finance. With a clear and approachable writing style, I simplify complex topics to make them more understandable.
