The Difference Between Hard and Soft Credit Checks

Appfolio Websites • March 18, 2021

(from apartments.com /Author: Jacob Margle)

Credit checks are an important part of tenant screening and a best practice to ensure you put the best renters possible in your unit. By running a credit check on a prospective tenant, you can learn a great deal about their rental history, including whether or not they owe money to a previous landlord. No one wants to be put in a situation in which rent becomes backlogged. However, which kind of credit check you perform will tell you varying degrees of information. As a landlord, you’ll be faced with running either a hard or soft credit check and understanding the difference.

What Is a Hard Credit Inquiry?

A hard credit inquiry is what you can expect when applying for a credit card, a mortgage loan, or any other type of loan. Hard inquiries need to be performed with the permission of the tenant or applicant, and since it’s tied to a credit application, credit bureaus assume it’s tied to a new line of credit or a loan. This means that a hard credit inquiry will negatively impact the tenant’s credit score. Hard inquiries can also reveal a bit more information than a soft inquiry will, such as credit utilization rates and other factors that give you a more complete picture of a tenant’s credit history.

A hard credit inquiry should only decrease an applicant’s score by five points or so. It is important to note that this impact will stay on their credit report for about two years, so while the impact isn’t much, it is something the tenant will have to work with for at least two years.

Examples of a hard credit inquiry

Mortgage applications. Applying for a major loan for something like a mortgage will trigger a hard credit inquiry by the lender
Auto loans. Auto loans are another major loan people take out during their life. Like a mortgage, this will trigger a hard inquiry
Student loans
Credit card applications. Not a loan, but since this comes with the presumption that the applicant will have another line of credit, it necessitates a hard inquiry
Apartment rental applications

What Is a Soft Credit Inquiry?

A soft inquiry is named so because it makes virtually no impact on one’s credit score. Soft inquiries are requested by the applicant or tenant themselves, typically when viewing their own credit report. Because these types of inquires aren’t tied to a line of credit or loan, there’s no impact on one’s score.

Soft credit scores aren’t always requested by the consumer. Potential employers and landlords can view a soft credit inquiry with the permission of the applicant. This is advisable for landlords, since multiple hard credit inquiries have the potential to lower an applicant’s score more than once. Consider asking your potential tenants to send you a soft credit inquiry report rather than going the hard route.

Examples of a soft credit inquiry

Checking your own credit score. Companies like Credit Karma perform a soft inquiry.
Employer screenings. During a background check for a job, your potential employer may perform a soft credit inquiry.
Prequalified credit card applications
A current creditor checks your credit. Your credit card company or lender may perform a soft credit check at any point

Credit Inquiries Can Be Situational

Not every type of credit inquiry situation is clear cut. Some requests that would result in a soft inquiry the majority of the time can end up triggering a hard credit inquiry, and vice versa. When it comes to rental applications, whether your tenants will be subject to a hard or soft credit inquiry depends on what service you use.

Third-party screening companies almost always use hard inquiries, but dealing with an applicant directly can result in a soft credit inquiry.

Examples of situational inquiries

Renting a car. Reserving a rental car with a credit card can result in a soft inquiry, while reserving one with a debit card may result in a hard inquiry.
Opening a checking or savings account
Cell phone, TV, or internet service agreement
Utility service agreement

If You Choose a Hard Credit Inquiry…

If you decided to pull a hard inquiry on a prospective tenant, the tenant will have their credit score decrease by around five points. This impact will remain on their credit report for two years, and an accurate hard inquiry can’t be removed from a credit report. It’s also worth noting that most of the time, a series of hard inquiries (whether it be from rental applications or something else) will be counted as a single inquiry, but it’s not uncommon for each pull to affect an applicant’s score individually. The impact of a hard credit score also lessens over time, so renters won’t see as drastic of an impact as time goes on.

When you list your rental on Apartments.com, you get access to credit reports as part of Rental Tools, making pulling credit reports on tenants easy.

If You Choose a Soft Credit Inquiry…

Choosing a soft credit inquiry means you will have to work more closely with a tenant since they have to give you or the screening company permission to view their credit report. The benefit is that your applicants won’t have their score affected by the inquiry. If applicants know that you require a soft credit check up front, they may be more inclined to apply and you can enjoy a bigger pool of applicants. And if you reject a tenant, they won’t have taken as big of a credit score hit when they apply somewhere else.

The Choice Is Yours

Whether you decide to perform a hard or soft credit inquiry is up to you, just know how it impacts your potential tenants before you proceed. A hard inquiry will typically reveal more information about that person’s credit history, but they’ll take a small hit on their credit score. A soft inquiry won’t affect a tenant’s credit score, but it can slow down your screening process since you need the permission of each applicant to view a soft inquiry.

Remember that credit is only partial picture of a tenant, and that you can rent to tenants with bad credit. If you’re unsure, start with a soft credit check. For most tenants, a soft inquiry will give you a relatively complete picture and it’s a great way to start your landlord-tenant relationship off on a positive note.

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66% of Buyers Think They Need “Perfect” Credit to Buy a House… Here’s the Reality

By The Lighter Side of Real Estate • June 6, 2026

One of the more nerve-wracking parts of even thinking about buying a house for many potential buyers is the concern that their credit score isn’t good enough. It’s no surprise, because you hear plenty of things about how important a strong credit score is when it comes time to buy a house. Unfortunately, when you hear that term thrown around, it might sound like you need a perfect credit score. In fact, a recent survey found that 66% of respondents said they thought you need a near-perfect credit to secure the best interest rate. There’s a good reason for that recommendation. A strong credit score will certainly make qualifying for a mortgage easier, and probably get you better rates, terms, and loan options. Fortunately, that’s not the case! When Chasing Perfection Becomes a Problem It’s common (and completely understandable) to feel like you don’t have the best credit score possible. Very few people do. According to Experian , only about 1.76% of consumers have a perfect score of 850. So aiming for perfection is likely a stretch for most home buyers right out of the gate. The issue isn’t that people want to improve their credit. That’s always a good thing. The problem is when the assumption that it needs to be perfect causes people to delay the process entirely. Instead of finding out where they stand, they wait. They assume they’re not ready. They put off having a conversation with a mortgage professional. And in some cases, they spend years trying to hit a number that may not have even been necessary in the first place. Meanwhile, they could have already been exploring their options—or at least working toward a clear, realistic goal instead of guessing. There’s a Fairly Wide Range of Acceptable Credit Scores That same survey, highlighted by HousingWire , points to a pretty big disconnect between what people think they need… and what lenders are actually looking for. Because while a lot of buyers assume they need to be close to perfect, most loan programs don’t require anything near that. In reality, there’s a fairly wide range of acceptable credit scores depending on the type of loan, the lender, and the overall financial picture. Many buyers are approved with credit that’s simply solid—not flawless. There are even loan programs designed specifically for buyers who have what might be considered “bad” credit. While a higher score can absolutely help when it comes to rates and options, it’s not always the barrier to entry people think it is. There’s a good chance the bar isn’t quite as high as you’ve been led to believe. The Best Way to Know Where You Stand It’s nearly impossible to generalize what you “need” in order to buy a home when it comes to credit. There are too many variables. Different loan programs. Different lenders. Different guidelines. And each one can look at the same financial profile a little differently. Which is why the only real way to know where you stand is to actually have a conversation. Actually, make that conversations. Don’t bank on just one lender. (Pun intended!) Talking to a few can give you a much clearer picture of what’s possible—and you may find you have more options than you expected. One lender might say no, while another sees a way to make it work. That happens more often than people realize. Even if you’re not quite there yet and do need to improve your credit, at least you’re no longer guessing. You’ll know exactly where you stand, what needs to improve, and what kind of timeline you’re realistically looking at. If you’re not sure where to start or which lenders to reach out to, a buyer’s agent can be a great resource. They can connect you with reputable lenders, help you compare your options, and give you a little extra perspective as you sort through it all. The Takeaway: A recent survey found that many potential homebuyers believe they need near-perfect credit to qualify for a mortgage—or at least to secure a good interest rate. In reality, most buyers are purchasing homes with credit that’s far from “perfect,” and there’s a fairly wide range of loan programs designed to work with different financial situations. The bigger issue is that this misconception can cause people to delay exploring their options altogether. If buying a home is something you’ve been considering, the best thing you can do is talk to a few lenders and see what they can offer based on your current credit—rather than waiting to improve your score to a level that may not even be necessary.

Newly Built Home Prices Hit a 5-Year Low

By KCM • June 6, 2026

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If You Think You Need a 20% Down Payment to Buy a Home, You Might Be Ready to Buy Sooner Than You Think

By The Lighter Side of Real Estate • June 3, 2026

Imagine you had to become a real estate agent tomorrow and help someone buy a house from start to finish. Think you’d know everything you need to know? Even if you feel pretty confident, there’s a good chance you’d run into a bit of a learning curve. There are a lot of moving parts in a real estate transaction, and most of what people know about the process tends to come from bits and pieces they pick up along the way. So it’s not all that surprising that, according to a recent survey from HousingWire , about 85% of homeowners said they wished they knew more before buying. Most of them probably did some homework and learned a lot as they went. But looking back, they realized there were things they would’ve liked to understand ahead of time. One of the biggest takeaways from the survey is that 13% of respondents believed they needed a 20% down payment to buy a home. That’s kind of surprising when you consider how often this topic comes up. It’s something agents talk about all the time, post about on social media, mention in conversations… to the point where it starts to feel like common knowledge. But clearly, it’s not something every home buyer (or potential home buyer) knows. So if you take nothing else away from this article, just know that you likely do not need 20% down to buy a house. Why Do People Still Think They Need to Put 20% Down? Years ago, putting 20% down was almost always required. Lending guidelines were tighter, loan options weren’t as flexible, and in many cases, that was just what buyers were expected to bring to the table. Over time, loan programs evolved, new options became available, and buyers started purchasing homes with far less money down than they used to. But somehow the idea that you need a 20% down payment never entirely went away. Part of that is likely because it’s still the benchmark for avoiding private mortgage insurance (PMI), which can lower your monthly payment. So it can come across as somewhat of an ideal thing to do. In reality, though, most buyers are putting down quite a bit less. In fact, the survey found that 72.6% of respondents put down 10% or less when they purchased their home. That Belief Could Be the Only Thing Stopping You From Buying a Home Based on those numbers, it’s pretty clear that a lot of buyers do figure out at some point that they don’t actually need 20% down. They get into the process, start asking questions, talk to the right people, and somewhere along the way, that misconception gets cleared up. But what if you never get that far? While plenty of buyers eventually learn they don’t need as much for a down payment as they first believed, there are likely a lot of potential homeowners sitting there thinking they need to hit that 20% mark before they can even start the conversation. Maybe you’re actively saving and assuming it’s going to take years. Or maybe you’ve just written it off altogether and figure it’s not even worth exploring yet. And if that’s the case, that belief alone could be the thing holding you back from finding out what’s actually possible. The reality is, what you qualify for depends on a lot of variables—income, credit, loan programs, and more—but the only way to really know is to explore it. That’s where talking to a real estate agent can make a big difference. They can help guide you, connect you with the right professionals, and walk you through not just down payment options, but the entire process. Don’t feel like you need to wait until you’re “ready” or have a full down payment saved before reaching out. The earlier you start the conversation, the better. Even if buying a home is just something you hope to do someday… that day may be sooner than you think. The Takeaway: A recent survey found that most homeowners wish they had known more before buying. One of the biggest misconceptions was about down payments. A surprising number of people still believe they need 20% down, even though most buyers are actually putting down far less. While plenty of buyers eventually learn they don’t need as much for a down payment as they first believed, there are likely a lot of potential homeowners sitting there thinking they need to hit that 20% mark before they can even start the conversation. If that sounds familiar, it may be worth reaching out to an agent and starting the conversation sooner than you think. You don’t need to have a down payment fully saved before reaching out—and you might even find that buying a home is more within reach than it seems.