An inquiry will appear on your credit report when a lender inquires about your credit. Also known as a credit check, there are two types: a “hardâ€ pull (this affects your credit score), and a “softâ€ pull (this does not affect your score). Whenever you authorize a lender to view your credit reports and scores, this will trigger a hard inquiry.
MyFico says hard inquires can impact your credit scores because this is an indication that you’re seeking new credit. Research finds that consumers looking for new credit are more risky than those who are not.
On the other hand, a soft inquiry happens when you pull your own credit or a creditor pulls your credit in order to conduct a pre-approval or account review.Â This will not impact your score because it does not signify that you’re looking for new credit.