Hard and soft inquiries both involve a credit-file check, but only a hard inquiry can affect a credit score. Last updated: August 16, 2026 This article is for general educational purposes only and is not financial or legal advice. Credit-reporting laws, lender procedures, bureau records, and scoring models differ between the United States and Canada and may change. Ask the company what type of check it will use before you authorize an application. A company may check your credit when you apply for a credit card, loan, mortgage, rental home, or another service. You may also create a credit check when you review your own report. These checks are called credit inquiries , credit checks , or credit pulls . The important question is whether the check is hard or soft . A hard inquiry can affect a credit score and can be visible to lenders. A soft inquiry does not affect the score. Quick answer Hard inquiry: usually connected to an application for new credit and may affect your score. Soft...

A simple example of how a credit card balance compares with its limit. Credit utilization compares the balance reported on your revolving credit accounts with the credit limits available to you. The calculation is simple, but the common “30% rule” is often misunderstood. Last updated: August 2026 Disclaimer: This article is for educational purposes only and is not financial advice. Credit reporting practices, scoring models, and lender policies vary in the USA and Canada. Credit utilization can be confusing. You may pay your credit card bill on time and still see a high balance on your credit report. You may also hear that crossing 30% will suddenly damage your score. Neither idea tells the full story. The balance used in a credit score may be a snapshot taken before your payment reaches your credit report. And 30% is a useful guideline, not a universal line between “good” and “bad” credit. This guide explains how the calculation works, what the 30% guideline means...