Does pre-approval affect your credit score?
Not with Preqly, because there is no credit inquiry at this stage. Elsewhere it depends on whether the check is soft or hard.
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Credit impact
Credit impact
What actually moves your score
Rate shopping protections explained by the CFPB.
A mortgage pre-approval does not affect your credit score with Preqly, because no credit inquiry is run at that stage.
Elsewhere it depends on the type of check. A soft inquiry has no effect. A hard inquiry can cost you a few points and stays on your report for about two years.
Soft versus hard inquiry
Only one of these touches your score
Preqly runs no inquiry at all at the pre-approval stage, so neither column applies.
The two kinds
Soft and hard inquiries
| Soft inquiry | Hard inquiry | |
|---|---|---|
| Affects your score | No | Yes, usually a few points |
| Visible to lenders | No | Yes |
| Typically used for | Prequalification, your own credit check | A full mortgage application |
| Stays on your report | Not shown to others | About two years |
| Needs your permission | Generally not | Yes |
Scroll sideways to see all columns.
Shopping around
Comparing lenders without stacking damage
Mortgage inquiries are grouped
Scoring models usually count several mortgage inquiries in a short window as one.
So comparing lenders is sensible
You are not punished the way you would be for opening several cards. A better rate is worth more than a few points.
Keep the shopping close together
The grouping only works inside that window. Spreading applications over months does not count the same.
Preqly does not add to it
With no inquiry at this stage, getting your letter here uses none of that window.
Find out without a credit check
No inquiry at this stage, so there is nothing to lose.
Get pre-approvedLater on
When your credit does get checked
The full application
This is where the hard inquiry happens, if it has not already. Documents get collected here too.
A second look
Credit gets checked again days before closing. That is why loan officers tell you not to buy a car.
New accounts and large purchases
Anything that changes your ratio can unwind an approval at the worst moment.
The bigger risk
What actually damages your score while house hunting
The inquiry is rarely what costs people a loan. What they do with credit while shopping usually is.
New accounts
A store card opened for a furniture discount adds an inquiry, lowers your average account age and adds a payment to your ratio, all at the moment you can least afford it.
Rising card balances
Utilisation is one of the largest inputs to a score. A balance that climbs between pre-approval and closing can move you into worse pricing, or out of a program.
Credit is re-checked days before closing. Whatever it shows then is what counts. What lenders look for in a score →
Questions
Common questions
Does getting pre-approved hurt your credit score?
Not with Preqly, because no credit inquiry is run at that stage. Elsewhere a hard inquiry can lower your score by a few points.
What is the difference between a soft and hard credit inquiry?
A soft inquiry does not affect your score and is not visible to other lenders. A hard inquiry can lower your score slightly and stays on your report for about two years.
Can I compare lenders without hurting my credit?
Yes. Credit scoring models generally treat multiple mortgage inquiries within a short window as one event, so rate shopping does not stack up damage.
How many points does a hard inquiry cost?
Usually a few points, and the effect fades over time. A single mortgage inquiry is rarely the reason an application fails.
When will my credit actually be checked?
At the full application after an accepted offer, and again shortly before closing.
Keep reading
Related guides
Mortgage pre-approval
The full guide to the letter and how to use it.
How to qualify
The four factors lenders weigh together.
Credit score needed
Minimums by program, and lender overlays.
Independent sources
- Consumer Financial Protection Bureau — hard and soft inquiries, and the rate shopping window
See your real number
Verified income and assets, in about 90 seconds.
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