In short, soft credit inquiries have no impact on your credit score, while hard credit inquiries could have a minor impact on your score.
There are two types of soft credit inquiries – marketing pre-screen credit checks (pre-approval letters for financial products you receive in the mail) and consumer-initiated inquiries (checking your score through a credit bureau, checking your rate for a loan, etc.)
You’ll mainly come across hard credit inquiries when you submit an application for a line of credit or loan and when a lender pulls your credit report to determine if you qualify for said line of credit or loan.
If you’d like a more in-depth explanation of this topic, check out our article The Difference Between Hard and Soft Inquiries.
Please Note: Checking your rates for a personal loan with Best Egg will not impact your credit score because we only generate a soft credit inquiry during this stage of the application process. A soft inquiry becomes a hard credit inquiry once funds are delivered to your account. This hard inquiry may impact your credit score.
If you’re applying for the Best Egg Credit Card, your credit score will not be impacted if we’re unable to approve you. If you’re approved for a credit card after submitting your application, a hard inquiry will be generated which may impact your credit score.