A soft inquiry is a credit check that does not affect FICO or VantageScore and is not visible to other lenders on your credit report — used for pre-qualification, background checks, account reviews, and self-monitoring. Governed by the Fair Credit Reporting Act (15 U.S.C. § 1681 et seq., ftc.gov/legal-library/browse/statutes/fair-credit-reporting-act) and enforced by the CFPB (consumerfinance.gov) and FTC.
Under the Fair Credit Reporting Act (FCRA, 15 U.S.C. § 1681 et seq.), credit inquiries are classified as either 'hard' (requiring consumer consent, appearing on the consumer's credit report, and potentially affecting the FICO score) or 'soft' (not requiring explicit application consent, not visible to third-party lenders, and having no impact on FICO). The CFPB's consumer disclosure guidance at consumerfinance.gov/consumer-tools/credit-reports-and-scores/ explains the distinction. Soft inquiries occur in several common scenarios: (1) the consumer checks their own credit (authorized under FCRA Section 609, 15 U.S.C. § 1681g); (2) a lender performs pre-qualification or pre-screening for a credit offer (FCRA Section 604(c), 15 U.S.C. § 1681b); (3) an employer conducts a background check (with consumer consent under FCRA Section 604(b)); (4) an existing creditor reviews an account (account management review); (5) insurance underwriting (with consumer authorization). The FICO 8 and FICO 9 models, and VantageScore 3.0 and 4.0, all exclude soft inquiries from scoring. Only hard inquiries (arising from formal credit applications) enter the scoring model and the 'inquiries' section visible to other lenders. Soft inquiries appear only on the consumer's own 'consumer disclosure' copy of their report — not on the version lenders pull. For business credit, Dun & Bradstreet, Experian Business, and Equifax Business also distinguish between hard and soft inquiry types on business credit files. Lenders pulling a business credit report for loan underwriting generate an inquiry on the business file; pre-screening for trade credit or monitoring alerts may generate soft inquiries. Unlike personal credit, FCRA does not apply to business credit reports — the hard/soft distinction exists by bureau practice, not federal law.
No. The FICO scoring algorithm (all versions: FICO 8, FICO 9, FICO Auto, FICO Bankcard) explicitly excludes soft inquiries from the score calculation. VantageScore 3.0 and 4.0 also exclude soft inquiries. Only hard inquiries — generated by formal credit applications — affect FICO (typically 5–10 points, recovering within 12 months). Source: myFICO.com/credit-education/credit-inquiries and the CFPB at consumerfinance.gov.
Yes — on the consumer-disclosure version of your report (the version you pull yourself via AnnualCreditReport.com or directly from each bureau). Soft inquiries appear in a separate section that only YOU can see. When a lender pulls your credit, soft inquiries are not visible to them. Hard inquiries appear in the shared section visible to all permissible-purpose pullers.
Pre-qualification uses a soft pull — no FICO impact. Only a formal loan application (where you submit complete financial information and the lender makes an actual credit decision) triggers a hard inquiry. Most modern lenders clearly disclose whether their initial process is a soft or hard pull. When in doubt, ask before proceeding.
Employer credit checks are always soft inquiries — they cannot affect your FICO score. Under FCRA Section 604(b) (15 U.S.C. § 1681b), employers must obtain your written consent before pulling your credit report and must provide an adverse action notice if they take action based on the report. Employment credit checks are limited to the employer's own copy and are never visible to other creditors.