Category: Credit Scores

Disclosure: This article contains affiliate links. We may earn a commission if you apply through our links, at no extra cost to you.

You have probably heard that applying for a credit card can lower your credit score. That happens because of something called a hard inquiry. But not all credit checks are the same. A soft inquiry does not affect your score at all.

Here is everything you need to know about hard vs. soft inquiries in 2026.

Hard Inquiry vs Soft Inquiry: Quick Comparison

Feature	Hard Inquiry	Soft Inquiry
Affects credit score?	Yes	No
Visible to lenders?	Yes	No (only visible to you)
Stays on report how long?	2 years	2 years (but invisible to lenders)
Score impact?	Usually 2–5 points	Zero
Requires your permission?	Yes	Sometimes no

What Triggers a Hard Inquiry?

Hard inquiries happen when a lender checks your credit to make a lending decision. You almost always have to authorize a hard pull. Examples include:

• Applying for a credit card
• Applying for a mortgage
• Applying for an auto loan
• Applying for a personal loan
• Applying for student loans (private)
• Renting an apartment (some landlords)

What Triggers a Soft Inquiry?

Soft inquiries do not require your permission in most cases. They do not affect your score. Examples include:

• Checking your own credit score
• Pre-approval offers from credit card companies
• Employer background checks
• Insurance company checks
• Account reviews by your existing lenders

How Much Does a Hard Inquiry Hurt?

Most hard inquiries lower your score by 2 to 5 points. The impact is small and temporary. Your score usually recovers within a few months. One or two hard inquiries per year should not worry you.

The impact is bigger if you have a thin credit file. With less history, each inquiry takes up more relative weight. If you have a long, strong history, you may barely notice the drop.

How Long Does a Hard Inquiry Stay on Your Report?

Hard inquiries stay on your credit report for two years. But they only affect your score for about 12 months. After one year, the scoring weight drops significantly.

The Rate Shopping Exception

Shopping for a mortgage or auto loan often involves multiple lenders checking your credit. FICO and VantageScore both have a rate-shopping window. Multiple mortgage or auto loan inquiries within a 14 to 45-day window count as just one inquiry.

This means you can shop around for the best loan rate without getting punished for it. Always use this window when comparing lenders.

How Many Hard Inquiries Is Too Many?

There is no hard rule. But lenders may view five or more inquiries in a short period as a red flag. It can look like you are in financial trouble. Try to space out your credit applications.

To understand how credit checks relate to your mortgage eligibility, see our guide on what credit score you need to buy a house. For full credit improvement strategies, read how to improve your credit score in 2026. And once your score is strong, compare the best cash back credit cards for 2026.

Frequently Asked Questions

What is a hard inquiry on a credit report?

A hard inquiry happens when a lender checks your credit to decide whether to approve your application. It can lower your score by 2–5 points and stays on your report for two years.

Does checking your own credit score cause a hard inquiry?

No. Checking your own credit score is always a soft inquiry. It does not affect your score in any way.

How long do hard inquiries affect your credit score?

Hard inquiries affect your score for about 12 months. They appear on your report for two years, but their scoring impact fades after one year.

What is the rate shopping window for mortgages?

FICO allows a window of 14 to 45 days for mortgage, auto, and student loan inquiries to count as one inquiry. This lets you compare lenders without multiple score drops.

Can I remove a hard inquiry from my credit report?

You can dispute an unauthorized hard inquiry and have it removed. But legitimate hard inquiries that you authorized cannot be removed early. They fall off after two years.

Disclosure: This article contains affiliate links. We may earn a commission if you apply through our links, at no extra cost to you.

Your credit score can make or break your mortgage. It affects whether you get approved. It also affects your interest rate. A higher score can save you thousands of dollars.

Here is what you need to know about credit scores and home buying in 2026.

Rates and figures as of May 2026.

Minimum Credit Score by Loan Type

Loan Type	Minimum Credit Score	Down Payment
FHA Loan	500 (with 10% down) or 580 (with 3.5% down)	3.5%–10%
Conventional Loan	620	3%–20%
VA Loan (veterans)	No official minimum (most lenders require 620)	0%
USDA Loan (rural areas)	No official minimum (most lenders require 640)	0%
Jumbo Loan	700–720	10%–20%

FHA Loans: Best for Lower Scores

FHA loans are backed by the government. They allow lower credit scores than most loans. You can get an FHA loan with a score as low as 500. But you will need a 10% down payment at that score. With a 580 score, you only need 3.5% down.

See the full FHA loan requirements for 2026 to learn more.

Conventional Loans: Most Common Type

Most homebuyers use a conventional loan. You need at least a 620 credit score. The higher your score, the better your rate. A score of 740 or above gets you the best rates on conventional loans.

VA and USDA Loans: Zero Down Options

VA loans are for veterans and active military. USDA loans are for homes in rural areas. Both allow zero down payment. Most lenders want to see a 620–640 score for these loans.

Learn more in our guides to VA loan requirements and USDA loan requirements for 2026.

How Your Credit Score Affects Your Mortgage Rate

Your score does not just determine if you qualify. It also affects your rate.

Credit Score Range	Estimated 30-Year Rate (May 2026)
760–850	~6.50%
700–759	~6.75%
660–699	~7.00%
620–659	~7.50%
580–619	~8.25%

A 0.50% rate difference on a $300,000 mortgage is about $100 more per month. Over 30 years, that is $36,000 extra. A better credit score saves real money.

How to Improve Your Score Before Applying

• Pay bills on time. Payment history is the biggest factor in your score.
• Pay down credit card balances. Keep your usage below 30% of your limit.
• Do not open new credit accounts. New accounts lower your average account age.
• Check your credit report for errors. Mistakes happen. Dispute any errors you find.

For a full guide, read how to improve your credit score in 2026.

Frequently Asked Questions

What credit score do I need to buy a house in 2026?

It depends on the loan type. FHA loans require a 580 score for 3.5% down. Conventional loans need 620. VA and USDA loans have no official minimum but most lenders want 620–640.

Can I buy a house with a 500 credit score?

Yes, with an FHA loan. But you will need a 10% down payment and will likely pay a higher interest rate.

How much does a low credit score cost on a mortgage?

A lower credit score means a higher interest rate. On a $300,000 loan, going from a 620 to a 760 score could save you $50,000 or more over the life of the loan.

How long does it take to raise your credit score to buy a house?

It depends on your starting point. Small improvements can happen in 30–60 days. Major improvements, like going from poor to good credit, may take 6–24 months.

Does getting pre-approved hurt your credit score?

A mortgage pre-approval requires a hard inquiry, which may lower your score by a few points temporarily. Multiple mortgage inquiries within 45 days count as one inquiry under the rate-shopping rule.

Disclosure: This article contains affiliate links. We may earn a commission if you apply through our links, at no extra cost to you.

Your credit score is a three-digit number. It tells lenders how likely you are to repay debt. A higher score means better loan rates, better credit card approvals, and sometimes even better insurance rates.

Here is how credit scores work in 2026 — and what each range means for you.

FICO Score Ranges Explained

Score Range	Rating	What It Means
800–850	Exceptional	Best rates on everything. Instant approvals.
740–799	Very Good	Near-best rates. Easy approvals.
670–739	Good	Most loans approved. Decent rates.
580–669	Fair	Some approvals. Higher rates.
300–579	Poor	Few approvals. Highest rates or denial.

What Is a Good Credit Score?

FICO considers 670 and above to be “good.” Most lenders agree. With a score in the 670–739 range, you can get approved for most credit cards and loans. You will not always get the lowest rate, but you will qualify.

A score of 740 or above is “very good.” At this level, you get near the best rates available. Many people at this level qualify for the best credit card offers.

To reach “exceptional” at 800+, you need a long, clean credit history. Very few missed payments. Low credit utilization. And a mix of different account types.

VantageScore vs FICO

Most lenders use FICO. But some use VantageScore. The ranges are similar. Both go from 300 to 850. VantageScore uses the same data from your credit report. The main difference is in how they weigh certain factors.

VantageScore Range	Rating
781–850	Excellent
661–780	Good
601–660	Fair
500–600	Poor
300–499	Very Poor

What Each Range Means for You

800–850: Exceptional

You qualify for the lowest interest rates. You get approved quickly. Lenders compete for your business. This range is the goal for most people.

740–799: Very Good

You get almost the same treatment as the 800+ group. Rates may be slightly higher, but not by much. You can still get premium credit cards and the best mortgage rates.

670–739: Good

You will get approved for most products. Your rates will be reasonable. This is where most Americans fall. It is a solid place to be.

580–669: Fair

You can still get approved for some loans and credit cards. But you will pay more. You may also need to put down a larger deposit or pay a higher insurance premium.

300–579: Poor

Getting approved is hard. When you do, rates are very high. The best move is to focus on building credit before applying for new products.

How to Improve Your Credit Score

• Pay every bill on time
• Keep credit card balances low
• Do not close old accounts
• Limit new credit applications

For a full plan, read our guide on how to improve your credit score in 2026. If you are starting from zero, see how to build credit from scratch in 6 months. To start building with a card, look at the best secured credit cards for building credit in 2026.

Frequently Asked Questions

What is considered a good credit score in 2026?

FICO considers 670–739 to be a good credit score. A score of 740 or above is very good, and 800 or above is exceptional.

What is the average credit score in the US?

The average FICO score in the US is around 714, which falls in the ‘good’ range. Most Americans are in a solid credit position.

What credit score do you need for a credit card?

Basic credit cards are available with a score as low as 580–620. Rewards cards and premium cards typically require 670 or above.

Can I check my credit score for free?

Yes. You can check your credit score for free through services like Credit Karma, Experian, or through many credit card issuers. Free checks do not hurt your score.

How long does it take to get from poor to good credit?

With consistent on-time payments and low balances, you may see meaningful improvement in 6–12 months. Going from poor to good credit typically takes 1–2 years.

Disclosure: This article contains affiliate links. We may earn a commission if you apply through our links, at no extra cost to you.

Starting from zero credit can feel overwhelming. No score means no loans, no credit cards, no apartment — sometimes. But you can build solid credit in less than two years. Some people see real results in six months.

Here is exactly what happens and how long it takes.

The Credit Building Timeline

Timeframe	What Happens
Month 1–2	Open a secured card or become an authorized user
Month 3–6	Your first credit score appears (usually 580–620)
Month 6–12	Score improves with on-time payments and low balances
Year 1–2	Scores in the 650–720 range become possible
Year 2+	Scores of 740+ are achievable with clean history

When Does Your First Score Appear?

FICO needs at least one account that is at least six months old. Once you have that, your score will show up. Most people see their first score between three and six months after opening their first credit account.

Your starting score is usually in the “fair” range — around 580 to 620. This is normal. It takes time to build a strong history.

Fastest Ways to Build Credit

1. Secured Credit Card

A secured card requires a cash deposit. That deposit becomes your credit limit. You use the card like normal. The bank reports your payments to the credit bureaus. Pay on time and keep your balance low. This is the most reliable method for building credit fast.

See the best secured credit cards to build credit in 2026.

2. Become an Authorized User

Ask a parent, spouse, or trusted friend to add you to their credit card. You do not even need to use the card. Their payment history on that account shows up on your report. This can give you a score boost quickly — sometimes within 30 days.

Make sure the primary cardholder has a good history. A bad account will hurt you, not help you.

3. Credit Builder Loan

Some credit unions and online lenders offer credit builder loans. You make payments on the loan. The money is held in a savings account. When the loan is paid off, you get the money. Along the way, every on-time payment builds your credit.

4. Report Rent and Utilities

Services like Experian Boost and Rental Kharma let you report rent and utility payments to the credit bureaus. This can raise your score quickly if you pay on time.

What Hurts Credit Building

• Late payments: One missed payment can drop a new score significantly.
• High utilization: Keep your credit card balance below 30% of the limit. Below 10% is even better.
• Too many applications at once: Each hard inquiry lowers your score slightly. Apply one account at a time.

How Long Until You Can Get a Mortgage?

For an FHA loan, you need at least a 580 score. That can happen in 6–12 months with consistent effort. For a conventional mortgage, you need 620 or above. A strong 700+ score for the best rates may take 18–24 months from scratch.

Learn more in our guide to how to improve your credit score and what credit score you need to buy a house in 2026. Also consider the best cash back credit cards for 2026 once your score is strong enough.

Frequently Asked Questions

How long does it take to build credit from scratch?

You can get your first credit score in 3–6 months. A good score of 670+ usually takes 12–24 months of consistent on-time payments and low balances.

Can I build credit without a credit card?

Yes. You can use a credit builder loan, become an authorized user, or report rent and utility payments through services like Experian Boost.

What is the fastest way to build credit?

Becoming an authorized user on someone else’s account is often the fastest method. You can sometimes see results in 30 days.

What credit score do I start with?

There is no starting credit score. You begin with no score at all. Once you have an account open for 6 months, your first score is calculated. It is usually in the 580–620 range.

Does checking your credit score hurt it?

No. Checking your own score is a soft inquiry. It does not affect your credit score. Only hard inquiries from lenders can lower your score.