What Is a Credit Check?

Your credit report summarizes your credit history, including your personal details, accounts, public records, and credit checks. When your credit report is accessed, it’s called a credit check (or a credit pull or inquiry). Credit checks stay on your report for up to two years. There are two types: hard and soft. Understanding which type affects your credit score can empower you to make smart credit decisions.

Soft Credit Checks

Soft pulls occur when your credit is accessed without a financial or lending determination being made, like when you are pre-qualified or pre-approved for an offer.

Soft inquiries:

• Don’t require your permission
• Are visible only to you
• Don’t affect your credit score
• May be performed as part of a background check for employment
• May be performed by lenders or insurance agencies to pre-qualify or pre-approve you for offers

If you pursue an offer, the entity will need more information to make an official determination and may request a hard pull of your credit.

Hard Credit Checks

Hard pulls are performed when a lender is making a final lending or financial determination, like when you apply for a mortgage.

Hard inquiries:

• Require your written permission
• Are visible to anyone checking your credit
• Can drop your FICO® Score by up to five points per inquiry
• May be performed when you apply for a loan or line of credit, like a student loan
• May be performed instead of a soft credit check when you apply to rent a living space

Hard pulls stop affecting your FICO® Score after one year.

Better Credit, Better Life

Managing your credit checks can protect your credit score and lead to money-saving benefits. Call us at 800-231-1626 or visit FirefightersFirstCU.org  resources to learn more about credit and borrowing.