By the Modern Lending Solutions editorial team. Last reviewed: .

Short answer: a little, and only for a while. When a lender reviews your credit after you apply, that is usually a hard inquiry, which can affect your score; checking your own report or getting prescreened offers is a soft inquiry and does not (CFPB). For most people one more inquiry takes less than five points off a FICO Score, and inquiries count toward the score for one year, though they stay on the report for up to two (myFICO).

Hard vs soft inquiries

Soft inquiryHard inquiry
ExamplesChecking your own report, prescreened offers, reviews of existing accounts, employment screeningA lender reviewing your credit after you apply
Effect on your scoreNone (CFPB)Can lower it; usually less than five points for one inquiry (myFICO)
Who can see itOnly youAnyone who pulls your report
How long it mattersNot at allAffects FICO Scores for one year; shown for up to two years

Rate shopping: what is grouped and what is not

FICO Scores group several hard inquiries made within a short window (14 to 45 days, depending on the scoring version) into one, and ignore inquiries from the last 30 days, for mortgages, auto loans and student loans (myFICO). myFICO does not list personal loans among these, so do not assume several personal loan applications will count as one. Compare with soft-pull prequalification where a lender offers it, and submit full applications only to the offers you would accept.

Does our form hurt your credit?

No. Filling out the Modern Lending Solutions form does not hurt your credit score. A participating lender may check your credit before it makes an offer, and each lender has its own process, so read its terms before you agree to a hard check.

Other things that matter more than inquiries

  • Inquiries are about 10% of what makes up a FICO Score (myFICO); paying on time and keeping balances low matter much more (CFPB).
  • Check your reports for free every week and dispute errors (FTC, FTC).
  • A new loan paid on time can help your history over time; a missed payment hurts far more than an inquiry.

Read next: what is a good APR and a personal loan with a 550 credit score.

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Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.

Sources

  1. CFPB: What is a credit inquiry?
  2. myFICO: Do Credit Inquiries Lower Your FICO Score?
  3. CFPB: What are some ways to start or rebuild a good credit history?
  4. FTC: You now have permanent access to free weekly credit reports (October 2023)
  5. FTC: Disputing Errors on Your Credit Reports