When you apply for any type of loan or credit card, you allow the bank or financial institution to check your credit report.

A hard inquiry happens when a company checks your credit report because you have applied for credit. You can dispute hard inquiries you didn’t authorize, but you cannot remove legitimate credit ...

Unlike a soft inquiry which is carried out when you check your credit score, a hard inquiry happens when you apply for a loan. This leads to an adverse impact on your credit score, albeit temporarily.