Soft and hard credit checks explained
Key takeaways
A soft credit check won’t impact your credit score and other lenders will not see it
A hard credit check will show on your credit report and it is 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.
This is often used if you are checking your eligibility for a financial product and the company may see some information from public records from the last six years, including whether you have county court judgments (CCJs), any Individual Voluntary Arrangements (IVAs), or bankruptcies.
It will also be able to see any credit you currently have outstanding, anyone you are financially linked to, and your credit history which will show if you have missed or made a debt repayment late.
An eligibility checker, which uses a soft credit search, allows you to see what financial products you might be able to get before you apply.
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.
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.
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 credit 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?
A hard credit search can remain on your credit report for up to two years.
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 making too many credit applications in a short space of time.
When you apply for credit, there will be usually 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 24 months, so it’s a wise idea to space out your credit applications to lower the impact a hard inquiry can have.
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.
Check my score
Frequently asked questions
Can I remove a hard search from my credit report?
You may be able to remove a hard credit search from your credit report in some situations. If the hard search was made fraudulently, by a criminal who has stolen your identity, or if it has been made because of an error, you may be able to ask for it to be removed. You will need to contact the company which has made the hard search first and then the credit reference agency where it is listed.
What else do lenders check besides your credit report?
Lenders will look at your credit report when they decide whether to lend to you or not but they will also look at things like your income to see if you can afford the debt repayments comfortably.
What should I do if I see an unrecognised credit search?
If you see a credit search which you don’t recognise, you should contact the company which has made the search. If it has been made by someone else fraudulently, you can report this to the police at Report Fraud. You can also ask the credit reference agency (or agencies) where it appears to remove the search.
Author
Rebecca Goodman
Personal Finance & Insurance Expert
Rebecca is an award-winning financial journalist with over a decade of experience writing for print and online media. Her mission is to take the jargon out of personal finance and to help everyone...
Reviewer
Alan Cairns
Senior Content Editor
Alan breaks down money, home, and energy topics into plain English to help you save money. Ask him about pound cost averaging or Balkonkraftwerk.
