Hard inquiry vs soft inquiry is a fundamental distinction to understand when you face a credit check Canada situation — and knowing the difference can protect your credit score when you apply for loans, credit cards, mortgages or even a new rental. This guide explains what a hard pull and a soft pull mean in Canada, how each can affect your credit, and practical steps to manage enquiries on your credit file.
What are hard and soft inquiries?
Hard inquiry (hard pull) — a formal check by a lender when you apply for credit. This type of credit check is used for loans, credit cards, lines of credit, and some mortgage applications. Hard inquiries are visible to other lenders and can affect your credit score.
Soft inquiry (soft pull) — an informal check that does not impact your score. Examples include checking your own credit report, pre-approved credit offers, employer background checks, or a creditor doing a prequalification that doesn't require full approval.
How hard and soft inquiries appear on your credit report
What shows up: Both hard and soft inquiries may be recorded on your credit file with Equifax or TransUnion, but soft inquiries are typically only visible to you, not to other lenders.
How long they stay: Inquiries generally remain on your credit report for up to two years. The actual negative impact on your score usually fades within 6–12 months, though the exact effect depends on the scoring model.
For official details about credit reports and scores, see the Financial Consumer Agency of Canada's guidance on credit reports and scores at the FCAC — Credit reports and scores.
How inquiries affect your credit score
Hard inquiries: May reduce your score by a few points (commonly small, often under 10 points), especially if you have a short credit history or many recent applications. Multiple hard inquiries in a short period can be a stronger negative signal.
Soft inquiries: Do not affect your credit score and are not visible to lenders when they review your file.
Scoring models and rate shopping: Some scoring models group multiple applications for the same type of credit (e.g., a mortgage or auto loan) within a short window and count them as a single inquiry. Many models use a window of 14–45 days, but this varies. Always ask lenders whether a prequalification is a soft check.
For more on inquiries from credit bureaus, see TransUnion Canada — Credit inquiries explained.
Common Canadian examples
Hard inquiry:
Applying for a personal credit card, line of credit, or loan.
Official mortgage application submitted to a bank or broker.
Soft inquiry:
Checking your own credit via Equifax or TransUnion.
A pre-qualified pre-approved credit offer from a bank.
Background checks for employment.
Account reviews by your current lender (e.g., periodically checking for fraud).
Find consumer-facing guidance from credit bureaus at Equifax Canada — Credit enquiries and their effect.
Step-by-step: How to apply for credit while minimising harm
Compare rates via soft prequalification. Use banks or comparison services that offer prequalification with a soft pull to get rate estimates without a hard inquiry.
Rate-shop smartly. If shopping for a mortgage or car loan, try to complete applications within a short time frame to reduce multiple hard inquiries' impact.
Apply only when ready. Prepare documentation and be reasonably certain you meet lender criteria before submitting a formal application.
Ask the lender. Confirm whether the credit check they will run is a hard or soft inquiry.
Monitor your credit. Check your free credit report annually and after applications.
Checklist: What to do if you see an unfamiliar hard inquiry
Confirm the creditor: Check the name of the company on your report.
Contact the creditor: Ask why the inquiry was made and whether it was authorised.
File a dispute: If unauthorised, dispute with the credit bureau (Equifax or TransUnion) and the creditor directly.
Place fraud alerts: Consider a credit alert or security freeze if identity theft is suspected.
Useful pages for disputes and reports: Equifax Canada — Dispute centre and TransUnion Canada — Dispute a credit report.
How to check your credit report in Canada
Get at least one free copy per year from Equifax and TransUnion (some provinces and circumstances allow more frequent free access).
Use official bureau services to view full reports; banks and some credit-monitoring services also offer access.
For steps to obtain and understand your report, see the FCAC guidance at FCAC — Credit reports and scores.
Frequently asked questions (quick answers)
Will a single hard inquiry ruin my credit? No. A single hard inquiry usually only lowers a score by a few points and recovers over months.
Can I remove a legitimate hard inquiry? Only if it's incorrect or unauthorised. Legitimate inquiries remain on file for up to two years.
Are pre-approvals safe? Ask whether pre-approval uses a soft pull. Prequalification that uses a soft pull won't hurt your score.
How often should I check my credit? At least once a year, and after applying for major credit or if you suspect fraud.
Final tips for Canadians
Use prequalification (soft pulls) when possible for credit card and loan comparisons.
Limit simultaneous credit applications. Multiple quick applications can add up.
Know your consumer rights. The FCAC explains rights around credit reports and handling disputes in Canada.
Helpful resources: FCAC — Credit reports and scores, TransUnion Canada, Equifax Canada.