⚡ Quick Answer
A credit check is when a company looks at your credit file. Hard checks — performed when you formally apply for credit — are visible to other lenders for 12 months and temporarily lower your score by roughly 5-15 points. Multiple hard checks in a short period look risky to lenders. Soft checks — checking your own score, using eligibility checkers, or pre-approval screenings — are invisible to other lenders and have zero impact on your score. Always use an eligibility checker (soft search) before formally applying for any credit product.
The hard credit check vs soft credit check distinction is one of those pieces of financial knowledge that, once understood, immediately changes how you approach applying for credit. Getting it wrong — making multiple formal applications to products you’re likely to be rejected for — can damage your credit score at exactly the moment it most needs to be strong.
Hard Credit Checks: What They Are
A hard credit check (also called a hard search or hard inquiry) is performed when you formally apply for:
- A mortgage
- A credit card
- A personal loan
- A car finance deal
- Some mobile phone contracts (not all)
- Some rental applications
Hard searches are recorded on your credit file and visible to any lender who searches your file during the following 12 months. Each search reduces your score temporarily — typically by 5-15 points — and multiple searches in a short period create a pattern that suggests to lenders that you’re repeatedly seeking credit (potentially indicating financial difficulty or desperation).
A single well-chosen hard search from a sensible application has minimal lasting impact. Multiple hard searches across several lenders within weeks can create noticeable damage.
Soft Credit Checks: Invisible and Harmless
Soft searches are invisible to other lenders and have absolutely no impact on your credit score. They occur when:
- You check your own credit report or score
- You use an eligibility checker before applying (lenders and comparison sites typically use soft searches for these)
- A lender does a pre-approval or pre-screening check
- An employer does a background check (some types)
- HMRC and government bodies verify your identity for benefits or services
Checking your own credit report is always a soft search, regardless of how often you do it. There is no “checking too often” that would harm your score.
The Practical Implication: Always Soft-Search First
Before formally applying for any credit product, use an eligibility checker. Most major comparison sites (MoneySuperMarket, Compare the Market, MoneySavingExpert) and many direct lenders offer eligibility checking tools that run a soft search and show your likelihood of approval before you formally apply.
This serves two purposes: it shows you which products you’re likely to be approved for (saving you from hard searches that lead to rejections), and it allows you to narrow to 1-2 high-probability applications rather than shotgunning multiple applications.
How Many Hard Searches Is Too Many?
There’s no hard rule, but the pattern matters more than the exact number. Two hard searches in 6 months for related purposes (comparing mortgages) looks different from five hard searches for five different credit products in three months. As a practical guide: no more than 2-3 hard searches in any 6-month period unless there’s a specific reason (e.g. multiple mortgage comparison searches within a short window, which experienced lenders typically treat as a single enquiry).
For how credit checks interact with your broader credit profile, our article on how your credit score affects your interest rate explains the full picture.
Frequently Asked Questions
Does my employer’s reference check affect my credit score?
Employment checks vary. A simple identity and basic background check typically uses a soft search or no credit check at all. Roles requiring financial responsibility sometimes involve a hard check — this should be disclosed to you before it happens. Check with the employer what type of search they’re conducting.
Do rate quotes for car insurance involve a hard search?
No — insurance companies run soft searches for premium quotes. Only if you proceed with a policy and request premium financing does a hard search potentially occur.
Use MoneySavingExpert’s Credit Club eligibility checker to perform soft-search-only checks across multiple credit products.
