What constitutes a “soft inquiry” on a credit report?

A "soft inquiry" occurs when a person's credit report is accessed without the intent to apply for credit, which typically includes situations such as self-checking one’s credit or an employer accessing the credit report as part of a background check. This type of inquiry does not affect the individual’s credit score, making it distinct from a "hard inquiry" that happens when a lender evaluates a credit report to make a lending decision.

Self-checks allow individuals to monitor their credit standing, ensuring that they are aware of their credit history and ready to manage their financial actions responsibly. Additionally, employer checks are commonly conducted when hiring candidates, allowing employers to assess applicants' financial responsibility, although they must obtain consent from the individual before doing so.

In contrast, a request from a lender for a hard credit pull or opening a new credit account are examples of actions that typically contribute to a hard inquiry, which can negatively impact a credit score. Similarly, a missed payment reported to credit agencies reflects negatively in one’s credit history and can lead to a reduction in the credit score. Thus, the definition of a soft inquiry distinctly encompasses the non-intrusive access of credit information aimed at personal or third-party verification without a direct credit application motivation.