Hard vs. Soft Credit Checks: What's the Real Difference?

By Gregg Tepper

I have been married to my wonderful wife Letha for 27 years. We have 3 children: Max, Alexander and Charlotte. I have been a licensed Realtor in the New Orleans area for 17 years and am the Operator of The Tepper Group with Keller Williams Realty in Mandeville. Our team services the entire New Orleans and Baton Rouge metro areas. Our team of partners has over 40 years of experience. We helped 141 families buy, sell or lease in 2022.

I get this question a lot: “What’s the difference between a hard and soft credit check?” Maybe you’re shopping for a new car, thinking about a mortgage, or just trying to build credit. But what many people don’t realize is that not all credit checks are equal. Some can lower your score, while others don’t touch it. Confusing, right? Let’s clear it up.

Hard credit checks. When you apply for a loan—a mortgage, car loan, or credit card—lenders want to see your credit history. They do this through a “hard check.” Here’s the catch: these hard checks can lower your score. Just one hard pull can knock it down by around 5 points. That might not sound like a lot, but if your score’s already on the edge, it can make a difference. And that hit sticks around for a year! If you’re applying for a mortgage or other big loans, hard checks are unavoidable. But here’s the good news: if you shop smart, you can avoid taking multiple hits to your score.

How to shop for loans without hurting your credit? Most people think every credit check affects your score. That’s not true. Credit agencies allow you to shop for the best loan rates within a certain period, typically between 14 and 45 days. So if you’re comparing mortgage rates, do all your applications within that window, and it’ll count as one hit. My tip? Stick closer to 14 days to be safe. This keeps things simple and avoids surprises. Remember, though, credit cards are the exception. Each application counts as a separate hard check, so apply wisely!

Soft credit checks. Not every check impacts your score. Some companies, like insurance and utility providers, use “soft pulls” to look at your credit. They want to know if you’re responsible without offering you money. These checks won’t change your score and are often used for things like background checks or pre-approved offers. But if you’re getting a mortgage pre-approval, I recommend going for the full hard check. That way, you’ll know exactly where you stand — no surprises when you find your dream home!

How to keep your score safe? If you are applying for credit, ask for referrals and interview a few lenders before giving the green light for a hard check. When you’re ready, do all your applications close together. This keeps your score protected and gives you the best loan options.

Credit checks can be tricky, but if you’re smart, you’ll keep your score intact. If you have questions regarding credit checks, feel free to call or text me at (985) 789 8717. I’m here to make the complex simple.