Credit scores
Hard vs Soft Credit Checks in Canada
What counts as a hard or soft credit inquiry in Canada, which one can lower your score, how long inquiries stay on your Equifax and TransUnion reports, and how to shop for a loan without extra damage.
What is the difference between a hard and a soft credit check?
A hard check (hard inquiry) is a lender looking at your credit because you applied for credit; it appears on your report and can lower your score. A soft check is visible only to you and never affects your score.
| Hard check | Soft check | |
|---|---|---|
| When it happens | You apply for a credit card, loan, line of credit or mortgage | You check your own report or score |
| Shows on your report | Yes, to you and to lenders | Only on the version you see |
| Can lower your score | Yes, usually slightly and temporarily | No |
| How long it stays | 3 years at Equifax, 6 years at TransUnion | Not used in your score |
Checking your own credit report or score is always a soft check, so you can look as often as you like.
Put it into practiceWhat is a good credit score?How much does a hard inquiry lower your credit score?
Usually a little, and the effect fades over time. Several applications in a short period do more damage than one, because lenders read them as a sign you need credit.
Equifax and TransUnion don’t publish an exact number of points; it depends on the rest of your file. A long record of on-time payments matters far more.
Does shopping around for a loan or mortgage hurt my score?
Not much, if you do it quickly. For a car loan or mortgage, quotes from different lenders within a 2-week period count as one inquiry.
Credit cards don’t get this treatment: each card application is its own hard inquiry. Space card applications a few months apart.
How long do credit inquiries stay on my report?
Lender inquiries stay 3 years on your Equifax report and 6 years on your TransUnion report. Their effect on your score fades well before that.
How do I avoid unnecessary hard checks?
Apply only for credit you’re likely to get and actually need, compare offers before you apply rather than applying to compare, and ask a lender whether a pre-qualification uses a soft or a hard check.
WalletReturn’s Find My Card compares 146 Canadian cards by value without any credit check, so you can narrow your choice before applying.
Keep reading
Credit scoresWhy Did My Credit Score Drop? 7 Common Reasons in CanadaThe seven usual reasons a Canadian credit score falls, from a higher card balance to a missed payment or an error on your report, and what to do about each.
Credit scoresHow to Increase Your Credit Limit in CanadaHow to ask for a higher credit card limit in Canada, what issuers look at, whether it affects your credit score, and why your bank needs your consent for every increase.- Credit scoresWhat Is a Good Credit Score in Canada?Canadian credit score ranges explained (300 to 900), what lenders consider good, and how long information stays on your Equifax and TransUnion reports.
- Credit scoresHow to Improve Your Credit Score in CanadaNine steps that raise a Canadian credit score, in order of impact, with how long each takes to show up.
Official sources and further reading
Terms vary by product. Confirm the provider’s current terms before acting. This guide does not predict approval, realized value or credit-score changes. How WalletReturn calculates value