Applying for a loan or a new credit card is a normal part of managing your finances, and it often involves credit inquiries. There are two types of credit checks: soft and hard. Understanding the difference between them helps you protect your financial health without unnecessary stress.
Soft credit checks are “view-only” inquiries that help lenders, employers, or apps verify basic credit information without changing your score. Hard inquiries happen when you formally apply for credit, like a loan or credit card, and they can cause a small, temporary score dip. In the Philippines, these checks are reflected through your CIC credit report, so it’s smart to understand what’s being recorded and why.
The safest approach is to review your own CIC report regularly, space out applications, and group similar loan applications within a short window when possible. If you ever notice an inquiry you don’t recognize, follow up quickly to protect your credit profile and avoid future approval issues.
Soft credit checks don’t affect your score and are often used for pre-qualification or verification. Hard inquiries happen when you apply for credit and may cause a small, temporary score drop. In the Philippines, both can show on your CIC report, so spacing applications and reviewing your report helps you stay in control.
Table of Contents
What is a soft credit check?
It is an informational look at your credit history that does not imply deep insight into your data. This kind of credit inquiry does not affect your score.
Common examples include:
- Credit score checks you do yourself via the Credit Information Corporation (CIC) or a bank app
- Background checks by potential employers
- Pre-qualified offers from lenders or stores
What about hard inquiries?
A hard inquiry happens when you formally apply for a loan or credit card. Lenders review your full credit history to get a detailed, overall picture. In comparison to a soft credit check, a hard pull may cause a slight, temporary drop in your score. Don’t worry, it shouldn’t hurt your overall creditworthiness if managed well.
Key things to know:
- These inquiries stay on your CIC report for two years.
- If you apply for the same type of loan within a 45-day window, it typically counts as a single inquiry.
- Hard inquiries generally stop affecting your score after a few months and are removed from your record after two years.
How shoppers and merchants can benefit from it
Shoppers who know these rules can compare rates more effectively and plan their applications. Businesses can use soft checks to pre-qualify customers without hurting their credit scores. For instance, a Salmon partner store can offer instant financing with approval rates up to 90% and minimal hard-inquiry exposure for the customer.
Extra tips for handling credit checks with ease
- You can check your own CIC report anytime; it’s a soft pull and won’t hurt your score.
- Avoid submitting multiple credit applications within a short period.
- If you’re unsure, consult with your lender or loan officer to understand how a check might affect you.
Monitor your CIC report regularly to catch any unauthorized inquiries and maintain a good credit score.
How many credit inquiries are “too many”?
There isn’t one perfect number, because lenders look at your full profile, not just inquiries. Still, a cluster of hard pulls in a short span can make you look credit-hungry, especially if your credit history is new or thin. If you’re planning a major application, it’s usually smarter to pause smaller applications for a while so your report stays clean and easy to approve.
What to do if you see an inquiry you don’t recognize
If your CIC report shows a lender you never contacted, treat it as a red flag. Start by checking your email, SMS, or app notifications to confirm you didn’t accidentally authorize an application. Next, contact the lender directly and ask for the application reference tied to your name. If it still doesn’t match your activity, request their process for disputing the inquiry and keep written proof of your request.
A simple application strategy that protects your score
Use soft checks to compare offers first, then apply only when you’re ready to accept a specific product. If you need multiple options, group them carefully and avoid spreading applications across many different lenders at once. A calm, planned approach almost always performs better than “apply everywhere and hope,” both for approvals and for your long-term credit profile.
Final takeaway
Soft checks are safe and useful for screening and comparisons. Hard inquiries should be treated as a “commitment signal” and used strategically, not casually. If you keep your CIC report monitored and your applications paced, credit checks become a tool you control instead of a surprise that controls you.
What is a soft credit check?
A soft credit check is a “view-only” inquiry that looks at your credit information without changing your score.
It is commonly used for pre-qualification, identity verification, or informational checks you request yourself.
What is a hard inquiry and when does it happen?
A hard inquiry happens when you submit a real application for credit, such as a loan or a credit card.
The lender reviews more detailed credit data to decide whether to approve you and what terms to offer.
Do hard inquiries lower your credit score in the Philippines?
A hard inquiry can cause a small, temporary score dip, but it usually fades with time and responsible repayment behavior.
One inquiry rarely matters on its own; repeated applications in a short period are what typically create risk signals.
How long do credit inquiries stay on a CIC report?
Inquiries can stay visible on your CIC report for up to two years, even if the score impact fades earlier.
That’s why timing matters, especially if you plan to apply for a larger loan soon.
How often can I check my CIC report without hurting my score?
Checking your own CIC report is considered a soft pull, so it won’t reduce your score.
Regular checks are helpful for spotting errors, confirming lender activity, and keeping your credit profile organized.
What if I see a credit inquiry I don’t recognize?
First, review your recent applications and notifications to make sure you didn’t authorize it by mistake.
If it still looks unfamiliar, contact the lender listed in the inquiry, request the reference for the application, and ask about their dispute process.
What’s a simple strategy to avoid “too many inquiries”?
Use soft checks to compare options first, then apply only when you’re ready to accept a specific offer.
Spacing out applications and avoiding “apply everywhere” behavior keeps your CIC report cleaner and easier to approve.
Andrej Fedek is the creator and the one-person owner of two blogs: InterCool Studio and CareersMomentum. As an experienced marketer, he is driven by turning leads into customers with White Hat SEO techniques. Besides being a boss, he is a real team player with a great sense of equality.