Hard and Soft Credit Inquiries: How To Compare Rates Without Affecting Your Credit Score in 2025

If your college financial aid plan includes private student loans, you’ll need to compare rates from multiple lenders. This process typically involves a credit check. 

If you want to compare loan rates without hurting your credit score, the good news is that you can prequalify with some lenders with just a soft credit check, which doesn’t affect your credit. 

Here’s what you need to know about the differences between a soft credit check vs. a hard credit check, and how to protect your credit score while shopping for a student loan.

Current private student loan rates

What is a credit inquiry?

A credit inquiry — also known as a credit check or credit pull — is performed by a lender, landlord, employer, or service provider to review your past borrowing and repayment behaviors. Your credit report is reviewed to determine whether you’re a high-risk individual to loan money to, and to gauge your overall financial responsibility.

There are two types of inquiries: soft credit checks and hard credit checks. 

When it comes to student loans, a soft inquiry typically occurs before submitting an application during the prequalification phase. Hard credit inquiries occur after you’ve decided to move forward with a student loan offer and submitted an application. 

What’s the difference between a hard and soft credit check?

Hard and soft credit checks are similar in that they offer you and lenders more insight and visibility into your credit habits. However, they differ significantly.

A soft credit inquiry doesn’t affect your score for better or worse. Common reasons for a soft pull include: 

• Requests to see your own credit report
• Checking prequalified student loan rates
• Employer background checks
• Rental credit screening

Private lenders conduct hard inquiries to make a lending decision for a student loan application you’ve submitted. Generally, this temporarily lowers your FICO score by fewer than five points. You — and any lender that’s received your authorization to run a hard credit check — can see past hard inquiries on your credit reports for up to two years, but hard credit pulls only affect your credit for up to one year. 

Does checking your rate affect your credit score?

Whether your score is adversely affected when checking your student loan rate depends on the type of credit inquiry that’s performed. Prequalifying for a student loan with a soft pull doesn’t affect your credit. However, applying for a student loan can temporarily drop your credit score.

When do student loan lenders use a hard inquiry?

A hard credit check is commonly performed when a lender is considering a new student loan or refinancing application.  

Jeanne Kelly, founder of The Kelly Group, a credit coaching service, highlights a common misconception about the hard inquiry impact on credit scores.

“Your FICO score calculates your credit inquiries for 12 months,” says Kelly. “Anything after that time you will see on your credit report for up to 24 months, but they are not calculated in your FICO score after the 12 months.”

This means that, although future lenders can see hard credit pulls for up to two years from the inquiry date, the minimal effect of hard pulls is only applicable for half of that time. 

How can you protect your credit score when rate shopping?

Comparing multiple student loan offers is essential in securing a competitive rate and terms that align with your repayment goals. It’s especially important for students who generally have thin or new credit files to do everything they can to protect their credit in the process. 

Here are a few ways to safeguard your credit while rate shopping:

• Prequalify: Prioritize lenders and marketplaces that offer student loan prequalification with a soft inquiry. You’ll get a better sense of the rate and terms you may qualify for without sacrificing your score.
• Shop for student loans within a tight window: For lenders that require a hard credit check up front, avoid spreading inquiries out over time. FICO converts multiple hard inquiries into one if they take place within a narrow window, typically 14 to 45 days.
• Keep an eye on your credit: Before and after applying for a student loan, monitor your credit report and score closely. Ensure that any inquiries that appear on your report are legitimate and report errors to the credit bureaus if they arise. You can request free weekly credit reports from each of the major bureaus at AnnualCreditReport.com.

Joseph Camberato, CEO of National Business Capital, also advises borrowers to pull their own credit report before approaching a lender to know where they stand.

“That gives you the power to have real conversations with lenders,” says Camberato. “You can say: 'Here’s my score. What kind of rates or terms could I qualify for?' Push them to give you a best- and worst-case scenario. That way, you’re getting a full picture before you even apply.”