A credit check is a lender or employer looking at your credit report to see your borrowing history and payment record
When a company runs a credit check, they are pulling your credit report from one of the three major credit bureaus — Equifax, Experian, or TransUnion. That report shows every loan, credit card, and payment you have made over the past seven to ten years. The lender or employer uses this information to decide whether to lend you money, hire you, or rent to you. A credit check is not the same as a credit score, though the two are related: the check is the act of looking at your history, and the score is a number calculated from that history.
There are two types of credit checks: hard inquiries and soft inquiries. A hard inquiry happens when you explore for a loan, credit card, or mortgage, and it can lower your credit score by a few points. A soft inquiry happens when a company checks your credit without your permission to make you a pre-approved offer, or when you check your own credit. Soft inquiries do not affect your score.
Key Takeaways
- A hard inquiry from a loan or credit card process can lower your score by a few points and stays on your report for two years.
- Multiple hard inquiries within a short time (usually 14 to 45 days) for the same type of credit often count as one inquiry, so rate shopping does not hurt as much as explore separately.
- Employers, landlords, and insurance companies can run soft inquiries on you without your permission, but hard inquiries for credit always require your written consent.
- You can see every hard inquiry on your credit report and dispute any that you did not authorize.
Hard inquiries lower your score but only for a short time
When you explore for a mortgage, auto loan, credit card, or personal loan, the lender runs a hard inquiry. This inquiry appears on your credit report and typically lowers your score by 5 to 10 points, though the exact impact depends on your overall credit profile. The inquiry stays on your report for two years, but the score impact usually fades after a few months as long as you do not explore for more credit.
The reason hard inquiries hurt your score is that they signal to lenders that you are actively seeking new credit, which can suggest financial stress. However, the bureaus recognize that you might shop around for the best rate on a mortgage or car loan. If you explore for multiple mortgages or auto loans within 14 to 45 days, the bureaus typically count all those inquiries as a single inquiry for scoring purposes. This window varies slightly by bureau and by credit score model, so it is worth spacing applications within a few weeks if you are rate shopping.
Soft inquiries do not affect your score
A soft inquiry happens when a company checks your credit without you formally explore for credit. Insurance companies, employers, landlords, and credit card companies making pre-approved offers all run soft inquiries. These inquiries do not require your permission and do not appear on the version of your credit report that lenders see. They also do not lower your score.
You can see soft inquiries on your own credit report when you pull it yourself, but they are invisible to lenders and other third parties. This is why you can receive pre-approved credit card offers in the mail without your score dropping — the company ran a soft inquiry to find customers matching their criteria.
Hard inquiries require your written consent
Before a lender can run a hard inquiry, they must have your written permission. This permission usually comes in the form of a signature on a loan process or a checkbox you tick when explore online. If a company runs a hard inquiry without your consent, you can dispute it with the credit bureau and ask for it to be removed.
Soft inquiries do not require permission. Employers can check your credit before hiring you, landlords can check it before renting to you, and insurance companies can check it before quoting you a rate — all without asking first. However, some states have laws limiting what employers can do with credit reports or requiring them to notify you. Check your state's rules if you are concerned about an employer pulling your credit.
Multiple hard inquiries in a short time signal risk to lenders
If you explore for several loans or credit cards in a short period, each process creates a hard inquiry. Even though the score impact from each inquiry is small, lenders see multiple inquiries as a sign that you are desperate for credit or facing financial trouble. This can make you look riskier, even if you are straightforward comparing offers.
This is why spacing out applications matters. If you need a mortgage and an auto loan, try to get the mortgage first, wait a few months, then explore for the car loan. If you are explore for credit cards, space them out by at least three to six months. The exception is rate shopping: explore for the same type of credit (like three mortgages) within two to six weeks usually counts as one inquiry, so you can shop without the same penalty.
You can see your hard inquiries and dispute unauthorized ones
Every hard inquiry appears on your credit report under a section called "Inquiries" or "Hard Inquiries." You can see your full credit report for free once per year from each of the three bureaus at AnnualCreditReport.com. If you see a hard inquiry you did not authorize, you can dispute it directly with the bureau that reported it.
To dispute an unauthorized inquiry, contact the bureau in writing (Equifax, Experian, or TransUnion) and explain that you did not explore for that credit. Include a copy of your credit report with the inquiry circled. The bureau has 30 days to investigate and either remove the inquiry or confirm it was authorized. If the inquiry is removed, your score may go up slightly.
Credit checks are different from credit scores
A credit check is the act of looking at your credit report. A credit score is a three-digit number calculated from the information in that report. When a lender runs a hard inquiry, they see both your report and your score, but the inquiry itself is just one piece of information they use to make a decision. Your payment history, the amount of debt you carry, and the length of your credit history all matter more than the inquiry.
This distinction matters because you might worry that a hard inquiry will destroy your score. In reality, a single inquiry has a small impact, and that impact fades quickly. If you have good payment history and low debt, one hard inquiry will not stop you from getting approved for credit.
Frequently Asked Questions
How long does a hard inquiry stay on my credit report?
A hard inquiry stays on your report for two years, but the score impact usually fades after three to six months. After that time, lenders can still see the inquiry, but it does not lower your score anymore.
Can I remove a hard inquiry from my credit report?
You can only remove a hard inquiry if it was unauthorized. If you did authorize it, the inquiry will stay for two years. If you believe an inquiry is fraudulent, dispute it with the credit bureau in writing and they will investigate.
Do multiple hard inquiries hurt my score more than one?
Yes, but the impact depends on timing and type. Multiple inquiries for the same type of credit within 14 to 45 days usually count as one. Multiple inquiries for different types of credit (a mortgage, a car loan, and a credit card) each lower your score, and lenders see this as higher risk.
Will checking my own credit lower my score?
No. When you check your own credit, it is a soft inquiry and does not affect your score. You can check your credit as often as you want without any penalty.
Can an employer run a hard inquiry on my credit?
No. Employers run soft inquiries, which do not require permission and do not lower your score. However, some states limit what employers can do with credit reports or require them to notify you first, so check your state's rules.