Soft Inquiry
Soft Inquiry A soft inquiry is a type of credit check that occurs when a person’s credit report is reviewed for non-lending purposes, such as background checks, pre-approved offers, or personal credit monitoring, and does not impact the individual’s credit score. This is evaluated within New Credit & Inquiries.
Plain-Language Meaning
A soft inquiry means someone has looked at your credit report, but not because you applied for new credit. These checks are usually for informational or promotional reasons and do not affect your credit score.
Practical Example
If you check your own credit score through a free service or a lender pre-approves you for a credit card offer, a soft inquiry is made on your credit report, and you will see it listed, but it will not lower your score.
What It Does Not Mean
A soft inquiry is not the same as a hard inquiry, which happens when you actively apply for new credit, such as a loan or credit card, and can impact your credit score.
How the System Interprets It
The system interprets soft inquiries as routine or informational checks that do not signal new credit-seeking behavior, so they are excluded from credit score calculations and do not indicate increased credit risk.
Common Misconceptions
- “Soft inquiries lower your credit score.” Soft inquiries have no effect on your credit score.
- “All credit checks are hard inquiries.” Only credit checks related to new credit applications are hard inquiries; others are soft.
- “Lenders can’t see soft inquiries.” Some soft inquiries may be visible to you but not to lenders, depending on the reporting agency.
Related Pages
Related Glossary Terms
FAQ
- Do soft inquiries appear on my credit report? Soft inquiries may appear on your personal credit report, but they are not visible to lenders and do not affect your credit score.
- Can I control who makes a soft inquiry on my credit? In most cases, soft inquiries occur with your consent or as part of routine processes, such as pre-qualification offers or employment background checks.