Hard Inquiry

Definition

A hard inquiry, also known as a 'hard pull,' occurs when a financial institution checks your credit report after you've applied for credit, such as a mortgage, auto loan, or credit card. A hard inquiry can slightly lower your credit score for a short period.

Example

You apply for a new rewards credit card online. As part of the approval process, the credit card issuer performs a hard inquiry on your credit report to assess your financial risk.