A hard credit search (also called a hard check or hard inquiry) is recorded on your credit file when a lender or financial provider accesses your full credit report as part of a formal credit application. This includes mortgage applications, credit card applications, personal loan applications and some mobile phone contracts.
Hard searches are visible to other lenders for 12 months, though they remain on your credit file for two years. Multiple hard searches in a short period can lower your credit score because they suggest you are urgently seeking credit, which lenders may interpret as a sign of financial difficulty.
In the mortgage context, it is important to avoid making multiple full applications to different lenders in quick succession. A good mortgage broker will use soft-search sourcing tools to identify suitable lenders before submitting a formal application, minimising the number of hard searches on your file.
Some mortgage lenders carry out the hard search at the Agreement in Principle (AIP) stage, while others wait until the full application. Your broker should be able to tell you which approach each lender takes.
David asks his broker to find him a mortgage. The broker uses a soft-search sourcing system to check David's eligibility with 30 lenders without leaving any mark on his credit file. Once they identify the best deal, the broker submits one formal application, which triggers a single hard credit search. This targeted approach avoids the multiple hard footprints that could lower David's credit score.
Key Points
- Hard searches are recorded when you formally apply for credit
- They are visible to other lenders for 12 months and stay on your file for two years
- Multiple hard searches in a short period can lower your credit score
- A mortgage broker can use soft-search tools to minimise unnecessary hard checks
- Some lenders hard-search at the AIP stage, others at full application — ask your broker