Key Takeaways
- Soft credit checks don't affect your credit score at all.
- Use soft pulls for pre-qualifying without impacting credit.
- Multiple soft checks are harmless; no penalty on your score.
- Hard pulls are visible to lenders and can lower your score.
Article Summary
A soft credit check, also called a soft credit inquiry, is a credit check that does not affect a home buyer’s credit score. Soft credit pulls are often used for mortgage pre-qualification and other situations where a quick look at your credit is enough.
Soft Credit Check: Explained in Plain English
A soft credit pull is a type of credit inquiry that shows only limited details from your credit report.
Lenders use soft pulls to pre-qualify home buyers or to verify refinance eligibility. Other businesses rely on them as well—credit card companies for pre-approved offers, employers for background checks, and landlords or insurers for applicant screening.
Unlike a hard pull, which is a full inquiry that may lower your credit score, a soft pull has no effect on your score or creditworthiness. It is visible only to you and not to other lenders.
Multiple soft pulls are harmless, no matter how often they occur. Hard pulls, on the other hand, are visible to all lenders and several in a short period can influence loan approval decisions.
A soft pull is best for the early stages of mortgage shopping, when you want to see where you stand. To move forward with a loan, lenders must run a current hard credit check prior to closing/
Reference: Soft Credit Check vs Hard Credit Check
| Trait | Soft Pull | Hard Pull |
|---|---|---|
| What It Shows | Limited information | Full credit report |
| Impact | No impact on credit score | May lower your credit score |
| Visibility | Only you can see it | Lenders and creditors can see it |
| When Used | Pre-qualification, background checks | Official credit applications and loans |
Soft Credit Check: A Real World Example
Imagine a first-time buyer who wants to understand how much home they can afford. The buyer contacts a mortgage lender.
The lender takes a simple application and runs a soft credit pull. The report lets the lender review the buyer’s credit, check debt-to-income, and estimate maximum purchasing power. None of this affects the buyer’s credit score.
Later in the process, when the buyer decides to apply formally, a hard credit check will be required to lock a rate and move toward closing.
Common Questions About Soft Credit Checks
Get answers to frequently asked questions about soft credit checks, including how they differ from hard pulls and their impact on your credit score.
What's the difference between a soft and hard credit check?
A soft credit pull is a limited check that does not impact your credit score. A hard pull is a more detailed inquiry that occurs when you officially apply for credit, which may slightly lower your score.
Can I see who has performed a soft credit check on my report?
Yes, you can see all the soft inquiries on your credit report. These are visible only to you and do not affect your credit score.
How often can a soft credit pull be done without affecting my credit?
There is no limit to the number of soft pulls that can be done on your credit. They have no impact on your score, regardless of how often they occur.
