Applying for credit is a normal part of life. Whether you are buying a car, applying for a home loan, opening a clothing account, or signing up for a cellphone contract, lenders will usually check your credit profile before approving your application.

This process is called a credit check.

What many South Africans do not realise is that some credit checks can affect your credit score. These are known as hard credit checks.

If you have ever applied for credit and noticed your score drop slightly afterward, you are not alone. Understanding how hard credit checks work can help you protect your credit profile and avoid unnecessary damage to your score.

What Is a Hard Credit Check?

A hard credit check, also known as a hard enquiry, happens when a lender reviews your credit report as part of a formal credit application.

The lender wants to understand:

• • How much debt you currently have

• • Whether you pay your accounts on time

• • How risky you may be as a borrower

• • Whether you can realistically afford another monthly payment

Hard credit checks are commonly done when applying for:

• • Vehicle finance

• • Home loans

• • Personal loans

• • Credit cards

• • Retail accounts

• • Cellphone contracts

In South Africa, lenders may obtain your information from credit bureaus such as TransUnion, Experian, or Compuscan.

What Is the Difference Between a Hard and Soft Credit Check?

Not all credit checks affect your score.

A soft credit check is a review of your credit information that does not impact your credit score. These are usually done for background purposes or informational checks.

Examples of soft credit checks include:

• • Checking your own credit score

• • Pre-approval or pre-qualification checks

• • Employer background checks in some cases

• • Existing account reviews by lenders

A hard credit check, however, happens when you formally apply for credit.

Here is the simple difference:

The good news is that checking your own credit report does not hurt your score.

Do Hard Credit Checks Lower Your Credit Score?

Yes, they can affect your score, but usually only slightly.  A single hard credit check is normally not a major problem. Lenders understand that consumers occasionally apply for credit.  The issue starts when there are many hard enquiries within a short period of time.

Multiple hard checks may signal to lenders that:

• • You are relying heavily on credit

• • You may be struggling financially

• • You are taking on more debt than you can afford

This can make lenders more cautious when reviewing your application.

A Real-World Example

Thumi recently applied for:

• • A personal loan

• • A new clothing account

• • Vehicle finance

• • A second credit card

Each application triggered a hard credit check. At first, Thumi thought applying to multiple lenders would improve her chances of approval. Instead, lenders saw several recent hard enquiries on her credit profile along with existing debt repayments.

When lenders reviewed her affordability, they found that her monthly debt obligations were already too high. As a result, several applications were declined because she could not comfortably meet additional monthly payments.

The hard credit checks themselves were not the only problem. The bigger concern was the combination of:

• • Multiple credit applications

• • Existing debt

• • Affordability concerns

• • Repeated declines

This is why applying for several accounts at once can sometimes make approval more difficult.

How Long Do Hard Credit Checks Stay on Your Credit Report?

Hard credit enquiries can remain visible on your credit report for up to 12 to 24 months, depending on the credit bureau and scoring model being used. However, their impact on your score usually decreases over time.

This means:

• • A recent enquiry has more impact

• • Older enquiries matter less

• • Responsible payment behaviour can help your score recover

If you continue paying your accounts on time and avoid unnecessary credit applications, your profile can improve steadily over time.

When Should You Be Concerned About Hard Credit Checks?

Hard credit checks become more concerning when:

• • You apply for multiple loans within a short period

• • You are repeatedly declined for credit

• • You open several accounts quickly

• • Your debt repayments are already high

• • There are enquiries you do not recognise

Unrecognised enquiries may be a warning sign of identity fraud or someone attempting to apply for credit using your information.

If you notice suspicious activity on your credit report, it is important to act quickly and dispute the enquiry with the credit bureau involved.

How to Reduce the Impact of Hard Credit Checks

The best way to protect your credit score is to be selective about when and where you apply for credit. Here are a few practical tips:

1. Only Apply for Credit When Necessary

Every formal application may trigger a hard enquiry. Avoid applying for accounts you do not truly need.

2. Avoid Multiple Applications at Once

Submitting many applications within a few weeks can make lenders nervous.

Using Thumi as an example again, applying for several accounts at the same time made her profile appear financially strained, even before lenders fully assessed her affordability.

3. Check Affordability First

Before applying for credit, work out whether you can comfortably manage the monthly repayments alongside your existing expenses and debt.

4. Review Your Credit Report Regularly

Checking your report helps you:

• • Spot errors

• • Detect fraud

• • Monitor your score

• • Understand your debt position

Remember, checking your own report is considered a soft enquiry and does not lower your score.

5. Pay Existing Accounts on Time

Payment history remains one of the most important factors affecting your credit profile. Even if you have a few hard enquiries, consistent repayments can help strengthen your profile over time.

Can Hard Credit Checks Be Removed?

Legitimate hard credit checks linked to genuine credit applications usually cannot simply be removed. However, there are situations where you may be able to dispute an enquiry, including:

• • Fraudulent applications

• • Incorrect information

• • Unauthorised credit checks

• • Administrative errors

Consumers have rights under South African credit laws to challenge inaccurate information held by credit bureaus.  If you believe a hard enquiry is incorrect or unlawful, it may be worth seeking professional guidance to understand your options.  Hard credit checks are a normal part of applying for credit in South Africa. In most cases, one or two enquiries are not a major issue. Problems usually arise when too many applications are made in a short period, especially when combined with high existing debt or affordability concerns.

The key is to apply for credit carefully, manage your repayments responsibly, and monitor your credit profile regularly.

Like Thumi discovered, applying for too many accounts at once can sometimes make lenders view your profile as higher risk, especially if your income can no longer comfortably support additional debt.

Understanding how hard credit checks work puts you in a stronger position to protect your credit score and make smarter financial decisions in the future.