Soft and hard credit checks explained
Our guides explains the difference between hard credit checks and soft credit checks and how best to protect your credit score when applying for a credit card or loan
Key takeaways
There are two main types of credit checks: soft credit check and hard credit check
A soft credit check won’t impact your credit score or show on your credit report
A hard credit check will be carried out when you apply for certain financial products such as mortgages and credit cards
Too many hard checks on your credit file can harm your credit score
What does a soft credit check show?
A soft credit check (also called a soft search) is when a company or organisation checks part of your credit report, giving them a limited view of your financial history.
When a company performs a soft check (e.g. for pre-approval or eligibility), it may see some information from public records, including whether you have county court judgments (CCJs) or bankruptcies, to assess risk - but not your full report.
A soft credit check on your credit record is not visible to other financial providers in the same way as a hard credit check.
This means soft searches do not impact your credit score or any future credit applications you might make.
A soft search allows you to see what financial products you might be able to get before applying.
This is useful because making many credit applications (resulting in hard searches) over a short period of time can negatively impact your credit score.
You will be able to see any soft searches that have been carried out when you check your own credit file. Soft searches and background checks will remain on your credit record for 12 months.
Who carries out soft searches?
Soft credit searches, sometimes known as ‘quotation searches’ or ‘smart searches’, are carried out by lenders, brokers and comparison sites, including MoneySuperMarket, to help check your eligibility before you apply for a credit card or loan.
When you compare deals with MoneySuperMarket, our eligibility checker tool will ask you to enter a few details, such as your name, date of birth, address and employment details.
This information is then used to carry out a soft search on your credit record with one of the UK’s three credit reference agencies (Experian, Equifax and TransUnion). We can then show you how likely you are to be accepted for each credit card or loan deal. If you have bad credit, there are ways to boost your credit score.
What is a hard credit check?
A hard credit check (also known as a hard credit search or hard enquiry) is when a lender or financial institution performs a full check of your credit report as part of a formal application for credit. This will affect your credit score and is visible to other lenders.
A hard credit check will cover an in-depth review of your credit report and credit history and can affect your credit rating. It’s important to remember that a hard inquiry will be visible to anyone who views your credit report.
Several hard credit checks in a short period of time could signal to lenders you’re having money problems and therefore will be a higher risk customer.
When will a hard credit check be used?
A company may carry out a hard search on your credit report when you:
make a mortgage, loan or credit card application
open an account with a utility company
apply for a pay-monthly mobile phone contract
apply to rent a property
What is the difference between a hard check and a soft credit check?
A soft credit check is a type of credit search that gives a limited view of your credit report and does not affect your credit score or appear to other lenders - it’s commonly used for things like eligibility checks, insurance quotes, or checking your own credit.
In contrast, a hard credit check is a full review of your credit file, including late payments or missed payments. It will impact your credit score and is visible to other lenders. A hard credit check is usually performed when you apply for credit products like loans, credit cards, mortgages, overdrafts or mobile phone contracts.
Multiple hard checks in a short time can suggest financial risk, while soft checks are risk-free and invisible to others.
🚩 MoneySuperMarket’s eligibility checker uses a soft credit check.
The following table shows the difference between a hard and soft credit check
| Soft search | Hard search |
|---|---|---|
You can see it on your own credit report |
|
|
Lenders and organisations can see it on your credit report |
|
|
It is recorded when you check your own credit report |
|
|
It is recorded when an identity check is carried out |
|
|
It is recorded when you apply for credit |
|
|
It is recorded when you apply for a utility contract |
|
|
It will stay on your credit record for 12 months |
|
|
What are the benefits of soft searches?
A soft search lets you check what credit deals you’re more likely to get, without harming your credit score.
This can stop you from applying for the wrong products, being rejected and harming your credit record.
There’s no limit to how many ‘soft checks’ you can make and they won’t affect your credit score, even if you have lots of searches close together.
📌 Go further: What to do if you fail a credit check
How long will a hard check stay on my credit record?
Most hard searches stay on your credit report for 12 months.
The more credit applications you make, the more hard checks will appear on your credit report.
This can influence your credit score and affect the likelihood of you getting credit in the future.
Lots of credit applications in a short space of time may make companies think you’re in financial trouble, that you rely too much on borrowing, or that you may not be able to make repayments on time.
If you have had debt problems in the past and you have a low credit score you can take steps to boost your score over time to improve your chances of getting better credit deals.
Can I avoid hard credit checks from negatively impacting my credit score?
A way to minimise the negative effects of hard credit checks is by avoiding taking out too many credit applications in a short space of time.
Every time you apply for credit, there will be a hard search on your credit report. That applies whether the credit rating agency you're using is Experian, Equifax or Transunion, which powers our Credit Monitor service.
A hard credit check can affect your credit score for at least 12 months, so it’s a wise idea to space out your credit applications to lower the impact a hard inquiry can have.
Other useful guides
Want to find out more about how credit scores work? We have a range of helpful guides:
Check your credit score with Credit Monitor
If you don’t know your credit score you won’t have the full picture when it comes to your finances.
A poor credit score may mean you won’t get the best deals or most favourable interest rates available. And you could be rejected for credit cards, personal loans and mortgages.
You can check your credit score for free with MoneySuperMarket’s Credit Monitor. It will help you spot and correct any errors and provide hints and tips on how to improve your rating.
Author
Ella Jukwey
Former Content Writer
Reviewer
Emma Lunn
Personal finance expert
Emma has written about personal finance for almost 20 years, with a career spanning several recessions and their inevitable consequences. Emma’s main focus is helping people learn to manage their...
