What Is a Hard Credit Search?
If you've ever applied for a loan, credit card or mortgage, you may have come across the term "hard credit search". But what does this actually mean in practice, and should you be worried about how it affects your credit score? A hard credit search is simply a check that a lender or another organisation carries out on your credit report when you apply for certain financial products or services. It allows them to review your credit history and it can help them decide whether to approve, or reject, your application. Unlike a soft credit search, a hard search leaves a record on your credit report that other lenders can see. It may also affect your credit score, particularly if you make several applications within a short period. That doesn't mean you need to avoid hard searches altogether. Understanding when they happen and how they work, can help you make more informed decisions about borrowing. By the way, you can find useful definitions of "hard credit search" and other common financial terms in our glossary.
Hard Search vs Soft Search: What's the Difference?
There are two main types of credit search: hard and soft. Both involve checking information on your credit report, but they serve different purposes and have different implications for your credit score.
A soft search is often used to check whether you're likely to qualify for a financial product before making a full application. It may be recorded on your credit report, but other lenders cannot see it and it won't affect your score. For a more detailed explanation, read our guide to soft credit checks.
When Does a Hard Credit Search Happen?
A hard credit search usually happens when you submit a formal application for credit.
Common examples include:
- Applying for a personal loan or credit card.
- Applying for a mortgage or certain types of car finance.
- Requesting an increase to your existing credit limit.
- Taking out certain pay-monthly mobile phone contracts.
However, not every application involves a hard search. Some providers use soft searches or alternative methods to assess eligibility and affordability. It's also important to remember that a hard search can happen no matter whether your application is approved or rejected. The search records that an application-related check took place,not whether you were successful.
Does a Hard Credit Search Affect Your Credit Score?
A hard credit search can lower your credit score, although the impact will depend on your circumstances and how the credit reference agency in question actually calculates your score. There is no fixed number of points that every hard search deducts. A single hard search may have little impact, while several searches within a short period could have a greater effect.
This is because lenders may interpret multiple recent applications as a sign that someone is taking on several new financial commitments or having difficulty accessing credit.
That being said, hard searches are only one part of your overall credit profile. Lenders may also consider your existing borrowing, repayment history, income and whether they think you can comfortably and practically afford the repayments.
If you're concerned about your score, our guides on building your credit score and credit history and improving your credit score, offer some practical steps you can take.
How Long Does a Hard Search Stay on Your Credit Report?
Hard searches typically remain on your credit report for around 12 months, although the exact period can vary slightly depending on the credit reference agency. Importantly, the length of time a search remains visible is not necessarily the same as the length of time it will affect your credit score. That's because the influence of the search may reduce over time, particularly if you avoid making several new applications and continue to manage your existing financial commitments responsibly. In other words, a hard search isn't something that will necessarily affect your credit score for as long as it remains on your report.
How Many Hard Searches Are Too Many?
There is no universal number of hard searches that will automatically damage your credit score or prevent you from being approved for credit. However, making several applications within a short period can generally give lenders cause for concern.
Imagine, for example, you apply for four personal loans over a few days, and each lender carries out a hard search. A subsequent lender may see those searches and question why you have applied for so much credit in such a short space of time.
That doesn't necessarily mean your next application will be rejected. Different lenders have different criteria, and a hard search alone doesn't tell them whether an application was actually successful or how much you ultimately borrowed.
Nevertheless, if you've recently been refused credit, it is better to try and understand why before proceeding to make another application.
Our guide, Loan Rejected? Five Simple Tips to Get Approved Again, explains what to consider before submitting another application.
How to Avoid Unnecessary Hard Credit Searches
You don't need to avoid applying for credit altogether. However, a little preparation could help you avoid unnecessary searches and make more informed borrowing decisions.
Use Eligibility Checkers
Many lenders offer eligibility checkers that use soft searches to give you an indication of whether you're likely to qualify. These can be useful when comparing products without affecting your credit score, although they don't guarantee approval. Always check whether the lender will carry out a hard or soft search before
submitting your details.
Check Your Credit Report
Before applying, review your credit report for incorrect information or anything that might affect a lender's decision. You can obtain your statutory credit report for free from the UK's main credit reference agencies. Checking your own report won't affect your score. For more information about what lenders may be looking for, take a look at our guide to avoiding a failed credit check.
Avoid Repeated Applications
If your application is declined, try to understand the possible reasons before applying elsewhere. Submitting several applications in quick succession may not improve your chances, particularly if your circumstances haven't changed.
Consider the Full Cost of Borrowing
Avoiding a hard search shouldn't be your only priority when choosing a financial product. Compare interest rates, repayment terms and the total amount repayable. Most importantly, make sure the repayments are affordable alongside your existing financial commitments.
Does Applying for a Salad Loan Involve a Hard Search?
No. If you're wondering what a hard credit search might mean when applying for a Salad loan, the good news is we don't carry one out. This means the application itself won't leave a hard-search footprint on your credit report.
At Salad, we use Open Banking to assess your current financial circumstances rather than relying on your credit score in our initial lending decision.
With your permission, Open Banking allows us to review relevant information about your income, spending and existing financial commitments. This helps us understand whether the loan repayments are affordable for you.
However, it's important to distinguish between applying for a loan and taking one out.
If your application is successful, we report your loan to credit reference agencies. This means the loan and your repayment history can become part of your credit file. Making your repayments on time may help improve your credit history, while missed payments could negatively affect your score.
Our approach means that your credit score doesn't have to be the deciding factor in whether you're eligible for a Salad loan. However, all applications remain subject to our eligibility criteria and affordability assessments, and approval is not guaranteed. You can find out more about what to expect in our step-by-step guide to applying for a Salad loan.
Frequently Asked Questions
Can a Hard Search Be Removed from Your Credit Report?
An accurate, authorised hard search generally cannot be removed simply because you don't want it on your credit report. However, if you notice a search you don't recognise or you believe was recorded incorrectly, you can contact the organisation responsible or the relevant credit reference agency and ask them to investigate.
Does Checking Your Own Credit Score Count as a Hard Search?
No. Checking your own credit score or credit report is a soft search and won't affect your score, regardless of how often you check it.
Does a Rejected Loan Application Leave a Hard Search?
Yes, if the lender carried out a hard search when assessing your application, the search can remain on your credit report even if you're rejected. However, the search itself won't reveal whether the lender approved or declined your application.
Can a Hard Credit Search Affect My Mortgage Application?
Potentially. Mortgage lenders may consider recent hard searches when assessing your application, alongside your income, existing debts, repayment history and other financial circumstances. A single hard search won't necessarily be the deciding factor on its own. However, several recent credit applications could raise questions about your borrowing activity, particularly if you're also taking on additional debt. If you're planning to apply for a mortgage, it may be sensible to avoid making unnecessary credit applications beforehand.
Can I See Who Has Carried Out a Hard Search on My Credit Report?
Yes. Your credit report should show a record of hard searches, including the organisation responsible and the date the search took place. You can check your statutory credit report for free through the UK's main credit reference agencies: Experian, Equifax and TransUnion. If you notice a search you don't recognise, contact the organisation responsible or the relevant credit reference agency and ask them to investigate.
