What is a credit check?

A credit check is how a provider reviews your credit history to help decide whether to approve your application and on what terms. Not all credit checks are the same, and the difference matters.

Soft checks

A soft credit check (or soft inquiry) doesn't affect your credit score and typically isn't visible to other lenders. Many providers use a soft check to pre-qualify you or show potential rates before you formally apply.

Hard checks

A hard credit check (or hard inquiry) happens when you formally apply for credit, and it can cause a small, typically temporary dip in your credit score. Multiple hard inquiries in a short window — especially for the same type of credit, like rate-shopping for a loan — are sometimes treated more leniently by credit scoring models than unrelated inquiries spread out over time, but it still varies by scoring model.

What to ask before you apply

• Will checking my rate involve a soft or hard credit check?
• If it's a hard check, does it happen before or after I see my offer?
• Will formally accepting the loan involve an additional hard check?

Asking these questions upfront lets you compare offers from multiple providers with fewer surprises to your credit report.