What is the difference between a hard inquiry and a soft inquiry?

@josie_rohan 

A hard inquiry refers to a credit inquiry conducted by a lender or financial institution when an individual applies for credit, such as a loan, credit card, or mortgage. A hard inquiry is typically done to determine the individual's creditworthiness and can have a negative impact on their credit score.

On the other hand, a soft inquiry, also known as a soft pull, is a credit inquiry that does not affect an individual's credit score. Soft inquiries are usually done for background checks, pre-approved credit offers, employment verifications, or personal credit checks. Unlike hard inquiries, soft inquiries are generally done without the individual's permission and don't impact their creditworthiness.

@josie_rohan 

A hard inquiry and a soft inquiry are two types of credit inquiries that occur when a lender or creditor checks a person's credit report. The main difference between them lies in their impact on credit scoring and the purpose for which they are used.

1. Hard Inquiry: A hard inquiry is a credit check that occurs when a person applies for credit, such as a loan or credit card. It typically involves a thorough review of the credit report and required approval from the person applying. Hard inquiries can have a negative impact on credit scores as they indicate that a person is actively seeking credit, potentially increasing the risk of future debt. They remain on the credit report for up to two years.
2. Soft Inquiry: A soft inquiry is a credit check that occurs when a person's credit report is accessed for informational purposes rather than for a specific application for credit. It may occur during background checks, pre-approval processes, or when a person checks their own credit report. Soft inquiries do not affect credit scores and are not visible to lenders or creditors accessing the credit report. They typically remain on the credit report for up to one year but do not have a negative impact on credit scoring.

In summary, hard inquiries occur when a person applies for credit and may have a negative impact on credit scores, while soft inquiries are for informational purposes and do not affect credit scores.