A soft credit pull is a type of credit inquiry that has no effect on your credit score. Soft credit pulls are used for purposes such as pre-qualifying for a credit card or a loan.
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What is a soft credit pull?
A soft credit pull, also known as a soft inquiry, is a type of credit check that does not impact your credit score. Soft inquiries are typically done by businesses when they want to check your credit history but do not need to know your credit score. For example, if you are applying for a job that requires a background check, the employer may do a soft pull on your credit report.
Soft inquiries can also be done by companies you already have a relationship with, such as your current bank orcredit card issuer. These companies may periodically check your credit report to see if there have been any changes that could impact your account, such as a change in your address or employment status.
While soft inquiries have no impact on your credit score, hard inquiries can temporary lower your score by a few points. Therefore, it’s generally best to avoid too many hard inquiries on your report.
How does a soft credit pull differ from a hard credit pull?
There are two types of credit inquiries that can occur when you check your own credit or when a lender checks your credit before issuing you a loan: hard inquiries and soft inquiries. Hard inquiries can have an impact on your credit score and are initiated by creditors when you apply for new credit. Soft inquiries occur when you check your own credit or when a lender checks your credit as a part of a pre-approval process. Soft inquiries do not have an impact on your credit score.
What are the benefits of a soft credit pull?
There are several benefits that consumers enjoy when they utilize a soft credit pull instead of a hard credit pull. For starters, a soft credit pull does not negatively impact your credit score the way a hard credit pull could. Additionally, a soft credit pull will not show up on your credit report, helping you to maintain a good standing with potential lenders. Finally, utilizing a soft credit pull can help you to avoid unwanted inquiries from lenders who may not approve your loan.
How can I get a soft credit pull?
A soft credit pull is a type of credit inquiry that does not affect your credit score. Soft credit pulls are typically used when you check your own credit score or when a company checks your credit for pre-approval of a loan or line of credit. Hard inquiries can stay on your credit report for up to two years and can ding your score by a few points, so it’s best to avoid them if possible.
There are a few ways to get a soft credit pull. One is to use a service like Credit Sesame or Credit Karma, which offer free credit scores and reports with no impact to your score. Another way is to ask for a “pre-qualified” offer from a lender, which will do a soft pull of your credit in order to give you an idea of what interest rates and terms you qualify for. Finally, some lenders may offer you the option to do a “soft” application for a loan or credit card, which will pull your credit but not result in a hard inquiry if you are not approved.
Are there any risks associated with a soft credit pull?
While a soft credit pull won’t lower your credit score, you are still giving the lender permission to look at your credit report. If the lender sees something they don’t like, they could decide not to give you the loan or could offer you a loan with less favorable terms.