What’s the Difference Between a Soft Credit Inquiry vs. a Hard Credit Inquiry?


You probably realize that your credit report is widely used in financial situations, like applying for a loan, credit card or line of credit. But beyond the use cases in the financial industry, your credit score and report can be confusing. A credit score is a three-digit number calculated from the information on your report.

Credit scores consist of a few different components, like your payment history, the amounts that you owe and your new credit, or when a credit inquiry is made on your report. New credit makes up 10 percent of your score.

But who makes hard credit inquiries, and how do they differ from soft credit inquiries? Only one type of credit inquiry is actually used to calculate your score. Read on to learn the difference between hard and soft credit inquiries.

Soft Inquiry versus Hard Inquiry: What’s the Difference

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Babs is a Senior Content Writer and financial guru. She loves exploring fresh ways to save more and enjoy life on a budget! When she’s not writing, you’ll find her binge-watching musicals, reading in the (sporadic) Chicago sunshine and discovering great new places to eat. Accio, tacos!