EyeOnWhat it means
Hard checks (also called hard searches or hard inquiries) are made by a lender assessing an application, for example for a loan, mortgage or credit card. They are normally recorded on your credit file and visible to other lenders.
Soft checks are used for things like checking your own report, some eligibility tools, identity checks and pre-approval quotes. They are typically not shown to other lenders and are not usually used in scoring.
How it works
Lenders can see how many hard searches you have had. A cluster of applications in a short time may be read by a lender or a scoring model as a sign of financial pressure, although some models treat several searches for the same type of loan, made close together, as one.
Eligibility checkers that use a soft check can show whether you are likely to be accepted without leaving a visible mark, though the final decision at application can differ.
A simple example
If someone applies for four cards in one month, four hard searches may appear. If they used a soft-search eligibility tool first and applied for only the one they were likely to be accepted for, there would be one. This is why many people look at eligibility before applying.
Things worth checking
- Check whether a quote, comparison or tool uses a soft or hard search before you proceed.
- Searches usually stay on a report for a limited time. The period varies by country.
- A declined application can still leave a search entry.
- Checking your own report is generally a soft search and does not harm your record.
How it varies by country
Names, visibility rules and how long searches remain on file differ by country and agency.