What is a soft credit pull?
A soft credit pull, or soft inquiry, is a credit check that has no impact on your credit score. Lenders and financial institutions typically use soft credit pulls to pre-qualify you for loans or credit offers, and to evaluate your creditworthiness for purposes like employment or insurance. Moreover, soft credit pulls are only visible to you on your credit report.
What does a soft pull on credit show?
A soft pull on your credit shows basic personal information, a summary of your credit history, recent inquiries, any public records related to your credit, and sometimes a summary of your credit scores. It does not reveal detailed account-specific information and doesn’t affect your credit score. Specifically, soft inquiries are used for informational purposes, like background checks for employment or pre-qualified credit offers.
What is a hard credit pull?
Hard inquiries, often referred to as “hard pulls” or “hard credit checks,” typically happen when a financial institution, like a mortgage lender or credit card issuer, assesses your credit as part of a lending decision. These inquiries commonly occur when you apply for a mortgage, loan, or credit card, and you usually need to grant permission for them to be conducted.
What does a hard pull-on credit show?
A hard pull on your credit provides the entity conducting it with a comprehensive view of your credit profile. This includes your personal details, credit history, credit scores, recent inquiries, and any public records, such as bankruptcy.
How bad does a hard pull affect credit score?
A single hard inquiry may briefly lower your credit score, but it typically has a minor impact and won’t significantly affect your approval for a new credit card or loan. The negative effect on your credit score often subsides before the inquiry is removed from your credit reports (usually within about two years).
However, be cautious about applying for multiple credit cards at once or within a short period of time, like a few months. Several inquiries in a brief period could make lenders and see you as a higher-risk borrower, possibly indicating financial strain or substantial debt. To maintain your creditworthiness, it’s a good idea to space out your credit card applications.
What does a hard pull show that a soft pull doesn’t?
A hard pull on your credit report provides more detailed information compared to a soft pull. It’s typically associated with applications for new credit like loans or credit cards, offering lenders a thorough view of your credit history and payment habits. This includes your credit scores, which soft inquiries usually don’t provide. Additionally, hard inquiries reveal your recent credit applications, giving mortgage lenders insights into your credit-seeking behavior.
Why do soft pulls and hard pulls exist?
Soft pulls are non-credit inquiries used for informational purposes, like self-checks or employment background checks. In contrast, hard pulls are credit inquiries during credit or loan applications, which can temporarily lower your credit score. Lenders use hard pulls to assess your creditworthiness.
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