Understanding the NOLOCK hint in SQL Server queries

I keep seeing the NOLOCK hint used in SQL queries at my workplace and I’m trying to understand when it’s appropriate to use it. What exactly does adding NOLOCK do to a query and what are the potential problems it can cause?

I’m working on a financial system that processes lots of transactions throughout the day. The database has some really large tables that get updated frequently. I’m wondering if there are specific scenarios where using NOLOCK makes sense for read operations, or if there are situations where I should definitely avoid it.

Could someone break down the pros and cons and maybe give some examples of when it’s safe versus risky to use this hint?

NOLOCK tells SQL Server to ignore locks and read data even while it’s being modified by other transactions. Your query can see uncommitted changes, which means dirty reads. Don’t use NOLOCK on transactional tables in financial systems - the performance boost isn’t worth the data integrity risks. I made this mistake on a payment processing system where NOLOCK queries would sometimes return inconsistent balances during busy periods. NOLOCK works fine for read-only reports against static reference data or dedicated reporting databases that sync from production. But for any tables handling active transactions, you risk reading incomplete or rolled-back data. Try snapshot isolation or read-committed snapshot isolation instead. They give you better concurrency without sacrificing consistency, which you absolutely need in financial apps where accuracy matters more than speed.

honestly, nolock is like driving without seatbelts - you might go faster, but when things crash, they crash hard. i’ve seen it create phantom rows and missing data that completely trash reports. for financial stuff, i’d avoid it unless you’re dealing with static lookup tables that never change.