Credit checks are at the heart of applying for credit. Make sure you understand them.

In this article

• What is a credit enquiry?

• Do enquiries affect your credit score and report?

• How long do enquiries remain on your report?

• How to minimise the effects of credit enquiries

• Does using ClearScore leave an enquiry?

• What's next?

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If you have already applied for credit, then you may have noticed that a credit enquiry was recorded on your credit report.

Credit enquiries or checks are necessary for lenders to gauge your creditworthiness. They can also help you understand your current financial situation so that you can apply for new credit products accordingly.

But does a credit check affect your credit score and report? Let's find out.

What is a credit enquiry?

Hard Enquiry vs Soft Enquiry: What's the Difference?

Not all credit enquiries are created equal. Understanding whether a credit check affects your credit score depends entirely on the type of enquiry being made. There are two categories: hard enquiries and soft enquiries.

What is a hard enquiry?

A hard enquiry (also called a hard pull) occurs when a lender or credit provider formally checks your credit report as part of a credit application. This type of enquiry requires your consent and is recorded on your credit report. Hard enquiries can lower your credit score temporarily, particularly if several are made within a short period.

What is a soft enquiry?

A soft enquiry happens when your credit report is checked for non-lending purposes - for example, when you check your own score, when a company runs a pre-approval check, or when an employer reviews your credit as part of a background screening. Soft enquiries do not affect your credit score and report at all and are not visible to other lenders.

Hard vs Soft Enquiry Comparison

Which South African credit checks count as soft enquiries?

In South Africa, the following are typically classified as soft enquiries: checking your own credit score through platforms like ClearScore, pre-qualification checks by lenders (where no formal application is submitted), insurance quotations, and employment background checks. Any formal application for credit - whether it is a bank loan, retail store card, or cellphone contract - will be recorded as a hard enquiry on your credit report.

A credit check or a credit enquiry is a search that's run to look at the information on your credit report with the goal of better understanding your financial behaviour.

In particular, prospective lenders are eager to find out whether you pay your current lenders on time and in full. For example, if you have a personal loan with your bank, the lender doing the search will find out whether you diligently pay your instalments or not.

When you apply for a big financial commitment like a credit card, loan, or lease, the lender will first check your credit report to decide whether you are the right applicant or not. This, in turn, allows them to pull credit reports from any of the major credit bureaus. Whether consent is needed depends on why the report is requested. For non-credit purposes such as employment verification, insurance assessment and educational verification, your consent is required before a report is requested, and employment checks are limited to roles involving cash or finances. When you apply for credit, the lender checks your report as part of assessing that application.

Through ClearScore, you will be notified every time you receive a new enquiry. Log in or sign up to access this information for free.

Organisations that can conduct credit checks on you for several reasons, include:

• Banks when you apply for any credit product, such as a loan or credit card.

• Retail outlets when you take out a store card with them.

• Insurance providers when you take out new insurance, such as car insurance.

• Loans and credit card providers when you open an account or borrow money.

• Prospective employers as part of your job application (if you work with money).

• Mobile service providers when you apply for a cellphone contract.

• Estate agencies & private landlords before drawing up your lease agreement.

As part of the credit check, they can see whether you have paid back your previous or existing credit issued to you, how much credit you already have, and how well you are managing it. They may also look into any financial associations if you have any joint accounts or loans.

If you would like to find out more about credit enquiries, you can read our article about understanding credit checks. It will go into more detail about what an enquiry entails.

Do enquiries affect your credit score and report?

While a few credit enquiries may have absolutely no effect on your credit score, multiple checks over a six month period can leave a noticeable mark.

The damage done to your credit score usually disappears over time. It will remain on your report for two years, but its impact on your credit score typically fades within the first year as bureau scoring models weigh older enquiries progressively less.

That means that if you apply to several lenders during a short period of time, it could have a significant impact on your credit score. Multiple enquiries will make lenders assume that you are a high-risk applicant. It can suggest that you're struggling financially or that you have too much debt.

Therefore, it's best to avoid applying for multiple loans or credit cards at the same time. Moreover, you should also read through the eligibility requirements for every new credit application. It's best to apply for only products that you're confident about getting approval for.

Through ClearScore (a credit broker, not a lender), you may have access to credit deals on your ClearScore offers - depending on your eligibility and the lender's own affordability checks. If you don't see offers, improve your score or update your details.

How long do enquiries remain on your report?

Credit Enquiry Duration: Common Questions

How long does a credit enquiry stay on your report in South Africa?

In South Africa, a credit enquiry remains on your credit report for one year from the date it was recorded. During this period, any lender or credit provider who pulls your report will be able to see the enquiry. How much an enquiry affects your score, and for how long, can vary by credit bureau and lender scoring model.

Do old enquiries still affect your credit score and report after one year?

No. Once the two-year period has elapsed, the enquiry is automatically removed from your credit report entirely. Even before removal, its impact on your score fades well within the first year. If you had a cluster of hard enquiries 18 months ago, they are unlikely to be dragging your score down today - though lenders reviewing your report can still see them until the full 24 months have passed.

Can you get an enquiry removed from your credit report early?

You cannot have a legitimate enquiry removed early simply because you no longer want it on your report. However, if an enquiry was made without your consent or by an organisation that had no lawful reason to access your credit file, you can dispute it directly with the credit bureau. Under the National Credit Act, you have the right to challenge any inaccurate or unauthorised information. If the bureau finds the enquiry was indeed unauthorised, it will be removed.

How many enquiries is too many within 12 months?

There is no fixed number that triggers an automatic penalty, but as a general guideline, more than three to four hard enquiries within a six-month window may raise red flags with lenders. Each additional enquiry signals that you are actively seeking credit, which can suggest financial pressure. To stay on the safe side, space your credit applications at least 30 to 90 days apart, and only apply when you are reasonably confident of approval. You can monitor your enquiry history for free through your ClearScore dashboard.

Once recorded, a credit enquiry will remain on your credit report for one year. This means that any organisation that views your credit report will be able to see which enquiries were made before them.

For example, if you applied to several loan providers during the same week, then the next loans provider you approach will be aware of this. In fact, this is why enquiries are there. It warns lenders when you appear to be desperate for credit, which can be a warning sign that you may not be able to meet your monthly repayments.

If possible, try to spread your enquiries out so that new lenders will only see a reasonable number of enquiries over the last year.

How to minimise the effects of credit enquiries

What Affects Your Credit Score the Most in South Africa?

Credit enquiries are only one piece of the puzzle. To put their impact in perspective, here are the main factors that determine your credit score in South Africa, ranked from most to least influential.

• Payment history - This is the single biggest factor in your credit score. Paying all your accounts - loans, credit cards, store accounts, and even municipal bills - on time and in full each month has the greatest positive effect. A single missed payment can cause a noticeable drop, and defaults or judgments are the biggest killers of credit scores.

• Credit utilisation ratio - This measures how much of your available credit you are actually using. Keeping your utilisation below 30% signals to lenders that you are managing your debt responsibly. Maxing out your credit cards or store accounts pushes this ratio up and drags your score down.

• Length of credit history - The longer your track record of responsibly managing credit, the better. Closing old accounts shortens your average credit age, which can lower your score. If an account is in good standing, it is generally worth keeping it open.

• Credit mix and new accounts - Having a healthy mix of credit types - such as a credit card, a retail account, and an instalment loan - shows lenders you can handle different forms of debt. Opening too many new accounts in a short period, however, can work against you.

• Credit enquiries - While hard enquiries do affect your score, they carry the least weight among these factors. A single enquiry may only cause a small, temporary dip. The real risk comes from clustering many applications together, which suggests financial distress. Checking your own score through platforms like ClearScore is a soft enquiry and has zero impact.

Understanding where enquiries rank among these factors helps you focus your energy on what matters most - consistent, on-time payments and keeping your credit utilisation low.

The 15/3 Credit Card Payment Rule: Does It Work?

What is the 15/3 payment rule?

The 15/3 rule is a credit card repayment strategy that involves making two payments per billing cycle instead of one. You make your first payment 15 days before your statement due date and a second payment three days before the due date. The idea is that by reducing your outstanding balance at two key points in the cycle, your reported credit utilisation stays lower - which can positively influence your credit score.

How does the 15/3 rule affect your credit utilisation?

Credit bureaus typically receive your balance information once per month, usually on or near your statement closing date. If you have already made a partial payment 15 days before the due date, the balance reported to the bureau may be lower than it would otherwise be. A second payment three days before the due date then ensures the remaining balance is minimal. The net effect is a lower credit utilisation ratio on your report, which is one of the key factors in calculating your score.

Is the 15/3 rule relevant for South African credit accounts?

The 15/3 rule originated in the United States and is not widely discussed in South Africa. South African credit card issuers and bureaus may report balances on different schedules, so the timing aspect does not always translate directly. That said, the underlying principle - paying down your balance before the reporting date to keep utilisation low - is sound regardless of where you bank. If you can afford to make multiple payments per month, it is a useful habit. However, simply paying your full balance on time every month remains the most effective way to maintain a healthy credit score and avoid unnecessary interest charges.

Don't apply to multiple lenders at once

Applying for multiple loans or credit cards at once can hurt your score, especially if your score is not yet in the 'Looking bright' band (634-657). No score band guarantees approval for any product - scores, eligibility and lending decisions vary by lender and individual circumstances. It's important you keep a gap of 30 to 90 days before applying to new credit products.

Adopt healthy credit habits

Focus on adopting healthy credit habits in order to build your score. You should make your repayments on time, maintain an optimum credit utilisation ratio, and avoid going over your credit limit.

Regularly check your credit score

Checking your credit report should be a part of your monthly routine. Keeping an eye on your credit file allows you to clearly see how credit enquiries affect your credit score and report. You can also look out for any errors on your report that might be affecting your score.

Get started by joining ClearScore. Here, you will be able to see your credit score, credit utilisation, open accounts, payment history, credit enquiries, and much more.

Does using ClearScore leave an enquiry?

You can log in and view your credit report as often as you'd like - and it won't impact your credit score. It doesn't count as an enquiry because you're viewing your own report.

ClearScore provides you with a free credit report that you can use to check your score. Once you join ClearScore, your credit report is shared with you along with personalised insights about your credit score.

Here's how you can get started:

• Sign up and create an account on ClearScore by entering your email address

• Add your personal information including your name, date of birth, and address

• Verify your identity by providing more information, such as your ID number or passport number.

• Get access to your credit report and details about your recent enquiries.

What's next?

Credit enquiries can quickly become a big challenge - especially if you have racked up too many of them and you're still trying to build your credit score. This is why you should check your free credit report routinely and review all the recent enquiries that have been made.