What is Hard Credit Search?

Full Definition

A hard credit search (also called a "hard credit check" or "hard footprint") is carried out by a lender when someone formally applies for a credit product, such as a mortgage, credit card, personal loan or car finance agreement, and involves the lender reviewing detailed information from a credit reference agency to decide whether to approve the application and on what terms. Unlike a soft credit search, a hard search leaves a visible mark, or "footprint," on the applicant's credit file that other lenders can see for up to 12 months (and that generally stays on file for around six years), and applying for several credit products in a short period can make an applicant look like a higher risk to lenders, since it may suggest financial difficulty or over-reliance on credit. A single hard credit search typically has only a small, short-lived effect on a credit score, but multiple hard searches within a short window -- particularly for products like credit cards and unsecured loans -- can have a more noticeable cumulative impact, which is why it is generally sensible to space out credit applications and to use eligibility checkers (which only carry out a soft search) to gauge the chances of acceptance before submitting a full application. A hard search is different from a "hard credit report," which simply refers to the fact the check itself is visible; it does not mean the outcome of the application was negative.

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