What is Hard Credit Inquiry?

A hard credit inquiry, or hard pull, occurs when a lender formally checks a customer's credit report to make a lending decision, such as approving a vehicle loan or lease. Unlike a soft pull, a hard inquiry is recorded on the credit file and can slightly lower the customer's score, especially if several occur in a short window. Canadian credit-scoring models generally treat multiple auto inquiries within a short rate-shopping period as a single event, so buyers are not heavily penalized for comparing lenders. Dealers must obtain explicit consent before initiating a hard pull and should only submit applications when the customer is ready to buy. Using soft-pull prequalification first, then a single hard inquiry to the best-fit lender, protects the customer's score and streamlines approval.