An enquiry shows up on your credit report when a provider/entity checks your file.
What is a soft enquiry?
A soft enquiry could take place when businesses such as providers or credit card companies want to get an overall idea of your financial status before pre-approving you for a product, or when you view your credit report.
These enquiries don't affect your score.
What is a hard enquiry?
A hard enquiry is when you apply for credit such as a new loan, credit card, mortgage, or open a new account.
Providers carry out an enquiry to view your full credit report before making a decision on whether to accept your application.
How does this affect your score?
Multiple hard enquiries for credit within a short period of time, or if you have more than one hard enquiry in 12 months – can affect your credit score negatively.
It can be a sign you rely too much on credit and affects the chances of providers accepting you for new credit.