Soft Inquiry
Financial term in the Credit category
Definition
A credit check that does not affect your credit score, typically occurring when you check your own credit or when a company pre-approves you for an offer. Soft inquiries also happen during background checks and when existing creditors review your account. Unlike hard inquiries, soft inquiries are only visible to you on your credit report.
Related Terms
Hard Inquiry
A credit check performed when applying for credit cards or loans that appears on your credit report and may temporarily lower credit score by 5-10 points. Multiple inquiries within 30 days count as one for credit cards.
Credit Report
A detailed record of your credit history maintained by credit bureaus, including your accounts, payment history, balances, and any public records like bankruptcies. Lenders, landlords, and sometimes employers review your credit report to assess your financial reliability. You are entitled to one free credit report per year from each of the three major bureaus through AnnualCreditReport.com.
Credit Monitoring
A service that tracks changes to your credit report and alerts you to new accounts, inquiries, or suspicious activity. Credit monitoring can help you detect identity theft early and stay informed about factors affecting your credit score. Many banks and credit card companies now offer free credit monitoring to their customers.
Frequently Asked Questions
What is Soft Inquiry?
A credit check that does not affect your credit score, typically occurring when you check your own credit or when a company pre-approves you for an offer. Soft inquiries also happen during background checks and when existing creditors review your account. Unlike hard inquiries, soft inquiries are only visible to you on your credit report.
Why is Soft Inquiry important in personal finance?
Soft Inquiry is an important credit concept that helps individuals make better financial decisions. Understanding Soft Inquiry can improve your financial planning and help you achieve your money goals.
How does Soft Inquiry relate to Hard Inquiry?
Soft Inquiry and Hard Inquiry are related financial concepts. A credit check performed when applying for credit cards or loans that appears on your credit report and may temporarily lower credit score by 5-10 points. Multiple inquiries within 30 days count as one for credit cards.
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