Quick answer
A hard inquiry is usually created when you apply for credit and a lender checks your credit report. Hard inquiries can affect credit scores, while soft inquiries generally do not.
Why it matters
The practical meaning.
Hard inquiries are not the largest score factor, but clusters of new applications can signal risk. They also help you spot possible unauthorized applications when you review your credit reports.
Key points
1.
Hard inquiries are usually tied to applications for credit.
2.
Soft inquiries include your own credit checks and some account reviews or prescreening.
3.
Unknown hard inquiries should be matched against recent applications and disputed if unauthorized.
Deadlines and timing
- Many credit scoring models treat loan-shopping inquiries within a short window differently for certain loan types.
- Inquiry impact is usually smaller than payment history and amounts owed.
