Hard Credit Pull (Hard Inquiry)

A hard credit pull, also known as a hard inquiry, is a thorough check of a consumer's credit report conducted by a credit issuer or lender when an individual applies for credit. This type of inquiry is common when you apply for a credit card, auto loan, mortgage, or other forms of credit where the lender needs to assess the creditworthiness of the applicant to make a lending decision.

Hard inquiries require explicit consent from the individual whose credit is being checked, as they can impact the individual's credit score. A hard credit pull typically causes a small and temporary decrease in the person's credit score. This is because applying for new credit can imply potential financial risk, especially if the consumer is seeking credit from multiple sources within a short period. However, the impact of a hard inquiry diminishes over time and typically disappears from the credit report entirely after two years.

In contrast, a soft credit pull (soft inquiry) is a more superficial credit check that does not affect an individual’s credit score. Lenders often perform soft pulls without the consumer's explicit permission, such as when they are issuing pre-approved credit offers or when a person checks their own credit score. Soft pulls may also occur when employers check credit as part of a background check.

Understanding the differences between hard and soft inquiries can help consumers manage their credit applications more strategically, preserving their credit score while seeking new credit lines or loans.