Soft vs Hard Credit Checks: What Comparing Does to Your Credit Score

The difference between soft and hard credit checks in Australia, what lenders can see, how long enquiries stay on your file, and how comparing affects your score.

Andrew Sunna

Founder and Managing Director, Flash Funding

Updated 13 November 2026

The short answer

A hard credit check happens when you apply for credit. It is recorded on your credit report as a credit enquiry, lenders can see it, and several in a short time can lower your credit score.

A soft credit check is used to look at your credit information without a credit application, for example when you check your own report, or when a broker or lender gives you a quote. Lenders cannot see soft checks and they do not affect your score.

Hard checks: what lenders see

Each time you apply for a loan, credit card or buy now pay later account, the credit provider makes an enquiry on your credit report. That enquiry:

Stays on your report for 5 years.
Can be seen by other lenders who check your report.
Records the type of credit and the amount you applied for.

One enquiry for a loan you actually take out is normal. The problem is several enquiries close together, which can suggest you are being declined or taking on a lot of new debt. That is why applying to lender after lender to "see who says yes" can make approval harder.

Soft checks: what they are used for

Checking your own credit report or score.
Getting a quote or checking which products you may qualify for, where the lender or broker uses a soft check.
Some identity checks.

Credit reporting bodies such as Equifax record soft checks on your file, but they are not shown on the credit reports given to lenders and they do not affect your score.

How comparing with Flash Funding affects your file

Using our comparison tool involves no credit check at all. It shows indicative options from the details you enter.
When you ask us to look at your options, we start with a soft credit check, which does not affect your credit score.
Only when you decide to apply to a particular lender does that lender run a full credit check, which is recorded as an enquiry on your file.

This way you can compare options and talk to a broker before anything goes on your credit file.

Checking your own credit report

You can get a free copy of your credit report from each of the credit reporting bodies, such as Equifax and Experian, every three months. Checking your own report is a soft check and does not affect your score.

It is worth checking before you apply for a car or personal loan, so you know what lenders will see and can correct any mistakes. If you find an error, you can ask the credit reporting body or the credit provider to fix it. Our guide to car loans with bad credit explains how long different information stays on your file.

Frequently asked questions

Does checking my own credit score lower it?

No. Checking your own credit report or score is a soft check. It does not affect your score and lenders cannot see it.

How long do credit enquiries stay on my credit report?

Credit enquiries from applications stay on your credit report for 5 years.

Does getting a car loan quote affect my credit score?

It depends on how the quote is done. Comparing options on our website involves no credit check, and our first check is a soft check. A formal application to a lender is recorded as an enquiry.

How many credit applications is too many?

There is no fixed number, but several applications in a few months can make lenders cautious. Comparing options first and applying once is usually better.

Sources

This guide is general information only. It does not take into account your objectives, financial situation or needs, and it is not credit, tax or legal advice. Tax and GST outcomes depend on your circumstances, so confirm them with your accountant. All finance is subject to lender approval, terms and conditions, and fees and charges apply.

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