Published November 1, 2026 · Beginner education
THE IDEA, IN PLAIN LANGUAGE
A hard inquiry usually happens when a lender reviews credit for an application and may affect scores. A soft inquiry, such as checking your own report, does not affect your scores. Rate-shopping treatment depends on the model and loan type.
KEY VOCABULARY
- Hard inquiry
- Credit review associated with certain applications.
- Soft inquiry
- Review that does not affect credit scores.
A PRACTICAL EXAMPLE
Review an application’s disclosure before authorizing a credit check. Checking your own report is a soft inquiry.
A COMMON MISTAKE
Assuming every credit check lowers your score.
WHAT TO REMEMBER
Know what type of check you are authorizing.
SOURCE REFERENCES
Use these external resources to study further. Explanations here are our own; external resources may change.
- Consumer Financial Protection Bureau: credit reports and scores ↗
- Request your credit reports ↗
- CFPB: debt collection rights ↗
- CFPB: credit cards ↗
RELATED VIDEOS
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