When a lender wants to know your credit worthiness, they check whether you are eligible for a particular credit product by checking your credit report. A soft enquiry is made when a lender wants to determine if you are eligible for any pre-approved deals. Soft inquiries won’t show up in your credit reports when lenders want to evaluate if you are creditworthy for a particular credit product. So, soft inquiries are harmless and will not affect your credit score.
If you have applied for a certain credit, the lender will check your credit report. This will be a hard inquiry and this will affect your credit score. Applying for a lot of credit, will raise a lot of hard inquiries which will have a negative impact on your credit score. And while lenders check your credit report, the hard enquiries that were made will be taken into consideration, to check whether you are creditworthy enough. If a lot of hard enquiries are made, it means that you have applied for a lot of credit in the past.
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