Hard Inquiry

A type of credit report check that may lower an individual’s credit score. A hard inquiry occurs when an individual applies for any type of credit, such as a mortgage, credit card or auto loan. The reason a hard inquiry may lower an individual’s credit score is because someone who has recently applied for new credit is seen as a potentially riskier borrower.

Also called a "hard pull."

The application for new credit indicates either that the individual may need credit as a result of a financial setback, or that the acquisition of new debt by the borrower makes him or her a higher lending risk. However, credit scoring formulas typically take into account that an individual might be shopping around for the best rate, so when multiple inquiries are made for the same type of credit in a short period, such as multiple mortgage applications, the individual’s credit score is not dinged repeatedly.

The other type of credit report inquiry is called a soft inquiry, or soft pull. Soft pulls include inquiries such as an individual checking her own credit report, employer checks of job applicants’ credit reports and credit card companies’ screening of applicants for preapproved credit offers. This type of credit report check does not affect an individual’s credit score because it is for informational purposes only.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Credit Inquiry — A transaction whereby a bank or other credit issuing institution views an individual’s credit report in connection with a loan or credit card application. The purpose of a credit inquiry is to evaluate an individual’s likelihood to… …   Investment dictionary

  • Hutton Inquiry — The Hutton Inquiry was a British judicial inquiry chaired by Lord Hutton, appointed by the United Kingdom Labour government with the terms of reference ...urgently to conduct an investigation into the circumstances surrounding the death of Dr… …   Wikipedia

  • Contextual inquiry — (CI) is a user centered design (UCD) ethnographic research method, part of the Contextual Design methodology. A contextual inquiry interview is usually structured as an approximately two hour, one on one interaction in which the researcher… …   Wikipedia

  • Soft Inquiry — A credit report check that does not affect an individual s credit score. A soft inquiry, also called a soft pull, occurs when an individual checks his or her own credit report, which she might do to make sure it contains no errors or fraudulent… …   Investment dictionary

  • United Kingdom — a kingdom in NW Europe, consisting of Great Britain and Northern Ireland: formerly comprising Great Britain and Ireland 1801 1922. 58,610,182; 94,242 sq. mi. (244,100 sq. km). Cap.: London. Abbr.: U.K. Official name, United Kingdom of Great… …   Universalium

  • cañada — /keuhn yah deuh, yad euh/, n. Chiefly Western U.S. 1. a dry riverbed. 2. a small, deep canyon. [1840 50; < Sp, equiv. to cañ(a) CANE + ada n. suffix] * * * Canada Introduction Canada Background: A land of vast distances and rich natural resources …   Universalium

  • Canada — /kan euh deuh/, n. a nation in N North America: a member of the Commonwealth of Nations. 29,123,194; 3,690,410 sq. mi. (9,558,160 sq. km). Cap.: Ottawa. * * * Canada Introduction Canada Background: A land of vast distances and rich natural… …   Universalium

  • Peirce, Charles Sanders — American pragmatism Peirce Cheryl Misak INTRODUCTION Charles Sanders Peirce (1839–1914), one of America’s greatest philosophers, mathematicians, and logicians, was a difficult and not altogether pleasant character. That, combined with what the… …   History of philosophy

  • United States — a republic in the N Western Hemisphere comprising 48 conterminous states, the District of Columbia, and Alaska in North America, and Hawaii in the N Pacific. 267,954,767; conterminous United States, 3,022,387 sq. mi. (7,827,982 sq. km); with… …   Universalium

  • India — /in dee euh/, n. 1. Hindi, Bharat. a republic in S Asia: a union comprising 25 states and 7 union territories; formerly a British colony; gained independence Aug. 15, 1947; became a republic within the Commonwealth of Nations Jan. 26, 1950.… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.