Soft Credit Pulls
What Is a Soft Credit Pull and How Does It Work?
A soft credit pull, also known as a soft inquiry or soft credit check, is a type of credit inquiry that does not impact your credit score. Soft pulls are often conducted by individuals or companies for informational purposes. For example:
- When you check your own credit score
- When a lender pre-approves you for a loan
- When employers, landlords, or insurance companies verify your identity or assess your creditworthiness
Soft pulls typically only show limited information from your credit report, such as your credit score and some of your credit history. They do not show detailed information, such as account numbers or payment history. Soft pulls are different from hard pulls, which are credit inquiries that can impact your credit score and are typically performed by lenders when you apply for credit, such as a mortgage or car loan.
Why Soft Pulls Matter
Soft credit checks provide valuable insights without the risk of lowering your credit score. They are widely used by lenders to pre-screen borrowers, by employers during hiring processes, and by consumers who want to monitor their own credit health.
Key differences between soft pulls and hard pulls:
Soft Credit Pull:
- Typically does not affect your credit score
- May be performed without your knowledge or consent
- Examples include pre-approval offers, personal credit checks, and background checks
- Shows limited information from your credit report
Hard Credit Pull:
- Can have a temporary negative impact on your credit score
- Requires your consent, and is usually performed when you apply for credit
- Examples include mortgage applications, credit card applications, and auto loans
- Shows detailed information from your credit report, including your payment history, account balances, and credit utilization
It’s important to keep in mind that too many hard pulls within a short period of time can lower your credit score, so it’s a good idea to limit the number of hard pulls on your credit report. Soft pulls, on the other hand, do not affect your credit score and can be useful for checking your credit score or for informational purposes.
