Soft Pull vs. Hard Pull: Credit Check Differences Explained

Wondering why your loan application didn’t go as smoothly as you hoped? It might all come down to something called a credit inquiry. A behind-the-scenes check that lenders use to peek at your credit health. Whether you’re applying for a personal loan, mortgage, or even a new credit card, every lender wants to know: are you a reliable borrower? That’s where soft pull vs hard pull come into play.

 

Knowing the difference between these two types of credit checks can help you get approved for loans more easily and keep your credit score in good shape.

What Is a Soft Pull (Soft Inquiry)?

 

A soft pull, or soft inquiry happens when companies, employers, or even you check your credit for reasons that aren’t tied to a formal loan application. Soft pulls do not affect your credit score and are visible mainly to you on your credit report. Think of it as a gentle look at your credit report, not a full-blown audit. 

 

Here are some common scenarios where a soft pull might happen:

 

• Checking Your Own Credit: When you review your credit report or score, it’s recorded as a soft inquiry. This means that you may check your score as often as you like.

• Loan Prequalification: Many lenders use soft pulls to help you see if you might qualify for a loan or what rates you could get, all without any commitment or risk to your score.

• Promotional Offers: Ever get a pre-approved credit card offer in the mail? Companies use soft pulls to see if you might qualify for special deals.

• Employment Background Checks: Employers may check your credit as part of their hiring process, but it’s just a soft pull.

• Requesting Utilities: Setting up electricity, water, or internet at a new place? Utility companies often use a soft pull to decide if you need a deposit.

• Renting or Leasing: Some landlords use a soft pull to check your credit before you move in. Always ask to be sure which type they use.

• Buying Insurance: In many states, insurance providers for auto and home coverage conduct a soft credit inquiry to determine your credit-based insurance score. A factor that could play a role in setting your policy’s premium.

• Account Servicing: Some credit card companies might do soft credit checks on current customers from time to time to decide things like raising or lowering your credit limit or offering you a special deal like promotional  offers.

 

Soft pulls help you explore your options safely and keep your credit score strong, so you can focus on reaching your financial goals.

 

Who Can See Soft Inquiries and How They Appear On Your Credit Report

Soft inquiries are primarily visible to you on your credit report, along with the credit bureaus that record them. In most cases, lenders considering you for a new loan or credit card won’t see these soft pulls—they’re mostly for your own reference. However, industry peers (like other insurance companies) might see certain soft inquiries relevant to their field, but not all types. 

 

Soft inquiries are typically listed in a separate section of your credit report, often labeled as “inquiries that do not affect your credit rating” or “soft inquiries,” and they never impact your credit score.

 

You’ll encounter soft inquiries in everyday situations such as loan prequalification, promotional credit card or loan offers, background checks by employers, and when you apply for utilities or insurance. In these scenarios, companies check your credit to make decisions or offers, but since it’s a soft pull, your credit health remains unaffected

What Is a Hard Pull (Hard Inquiry)?

A hard pull—also called a hard inquiry or hard credit check—occurs when a lender checks your credit report to make a lending decision. Unlike a soft pull, a hard inquiry means you’ve applied for new credit or a loan, and the lender needs to take a closer look at your creditworthiness.

How Does a Hard Pull Work?

When you apply for credit, the lender may review your credit file from one or more of the three major credit bureaus: Experian, TransUnion, and Equifax. This check is recorded on your credit report and can have a small, temporary impact on your credit score.

 

Common Scenarios Where You’ll See a Hard Pull :

 

Applying for a New Credit Card: Every credit card application usually triggers a hard inquiry.

 

Buying or Leasing a Car: Whether you’re financing or leasing, expect a hard pull from the lender or dealership.

 

Applying for a Mortgage: Mortgage lenders perform a hard pull when you apply, and sometimes again before closing.

 

Applying for a Personal Loan: Lenders conduct a hard inquiry to assess your eligibility.

 

Applying for Private or Federal PLUS Student Loans: Both types of student loans often require a hard credit check.

 

Requesting a Credit Limit Increase: Some credit card companies may perform a hard inquiry before approving a higher limit.

 

Renting or Leasing an Apartment: Some landlords or property managers use a hard pull to check your credit—always ask which type they’ll use.

 

What Does Hard Enquiry Mean for You?

A hard inquiry is a normal part of applying for credit and typically only causes a small, temporary dip in your credit score. The impact lessens over time, and multiple inquiries for the same type of loan (like a mortgage or auto loan) within a short period are often counted as one.

 

Who Can See Hard Inquiries and How They Appear to Lenders

When you apply for credit—whether it’s a new credit card, a personal loan, or a mortgage—lenders perform a hard inquiry (also called a hard pull or hard credit check) to assess your creditworthiness. These hard inquiries are recorded on your credit report and are visible to any lender who reviews your file. This means that if you apply for a loan or credit card, other potential lenders can see that you’ve recently sought new credit.

 

Hard inquiries typically remain on your credit report for up to two years, but their impact on your credit score usually fades within 12 months. While a single hard inquiry might cause a small, temporary dip in your score, multiple hard inquiries in a short period could signal to lenders that you’re seeking a lot of new credit at once, it’s something worth keeping in mind as you plan your financial moves.

 

At a Glance: Differences Between Soft and Hard Pulls

 

Feature	Soft Pull (Soft Inquiry)	Hard Pull (Hard Inquiry)
Impact on Credit Score	No impact	May lower credit score slightly
Who Can See	Only you (mostly); industry peers	All lenders
When Used	Pre-approvals, background checks	Loan, credit card applications
Permission Needed	Not always	Yes
Duration on Report	1–2 years	Up to 2 years

How Do Soft and Hard Pulls Affect Loan Applications?

When you’re applying for a loan or credit card, lenders use soft pulls and hard pulls to get a clear picture of your credit health and decide whether to approve your application. Understanding how these credit checks work and how they’re used can help you approach the lending process with confidence.

How Lenders Use Inquiries to Assess Risk

Lenders look at both soft inquiries and hard inquiries to evaluate your financial habits and risk level. Soft pulls (like those used for prequalification or promotional offers) give lenders a snapshot of your creditworthiness without affecting your credit score. These are often used for initial checks, helping you shop around for the best rates without commitment.

 

On the other hand, hard pulls happen when you formally apply for a loan, credit card, or mortgage. These show up on your credit report and can cause a small, temporary dip in your credit score. Lenders use hard pulls to confirm you’re a responsible borrower before making a final decision. Too many hard inquiries in a short time can raise a red flag, as it may suggest you’re taking on more debt than you can handle.

Best Practices for Minimizing Hard Pulls

 

• Rate Shopping: When shopping for loans (like auto or mortgage loans), try to submit all your applications within a short period. Credit scoring models usually count multiple inquiries for the same type of loan as a single event if they happen within a set timeframe.
• Prequalification: Take advantage of lenders’ prequalification offers, which use soft pulls to estimate your eligibility and potential rates—no risk to your credit score.
• Timing Applications: Space out your credit applications to avoid multiple hard inquiries at once. This helps keep your credit score steady and reassures lenders you’re not overextending yourself.

Tips for Borrowers

 

• Monitor Your Credit Report: Regularly check your credit report to spot any errors or unauthorized hard inquiries. This helps you stay on top of your credit health and address issues quickly.
• Know Which Check Is Coming: Always ask lenders and property managers whether they’ll use a soft or hard pull before you apply. This way, you can plan ahead and protect your credit score.
• Stay Informed: Understanding the difference between soft and hard pulls empowers you to make smarter financial decisions and approach loan applications with confidence.

Smart Credit Management for Loan Applications

Managing your credit wisely is the foundation of a smooth and successful loan application experience. By understanding the difference between soft pulls and hard pulls, you’re already ahead of the game. Remember: soft pulls let you shop around for the best rates and terms without affecting your credit score, while hard pulls are only triggered when you formally apply for new credit. Keeping track of your credit inquiries, spacing out loan applications, and regularly monitoring your credit report are all smart moves to protect your credit health.

 

Use soft pulls whenever possible to explore your options safely, and always be proactive about checking your credit report for accuracy. With these best practices in place, you’ll be well on your way to achieving your financial goals, without unnecessary stress or surprises.

 

Ready to take control of your credit journey? Check your credit report today and see how easy it is to borrow smart.

 

FAQs About Soft Pull vs. Hard Pull in Loan Applications

 

Q1. Does a soft pull affect my credit score?

Ans: A soft pull, or soft inquiry, occurs when you or a company checks your credit for pre-approvals, background checks, or self-monitoring. Soft pulls do not affect your credit score and are not visible to most lenders, making them safe for your credit health.

Q2. How long do hard pulls stay on my credit report?

Ans: Hard pulls, or hard inquiries, remain on your credit report for up to two years but typically only impact your credit score for about one year. Their effect lessens over time, so responsible credit management helps your score recover quickly after a hard pull.

Q3. Can I remove a hard pull from my credit report?

Ans: Legitimate hard pulls cannot be removed from your credit report. However, if you spot unauthorized or incorrect hard inquiries, you can dispute them with the credit bureaus to protect your credit report and maintain your credit score.

Q4. Why do lenders perform hard pulls?

Ans: Lenders perform hard pulls to evaluate your creditworthiness when you apply for a loan or credit card. This allows them to assess your risk and payment history before approving new credit, helping them make informed lending decisions.

Q5. When should I expect a soft pull?

Ans: Expect a soft pull during pre-approval offers, background checks by employers, or when you check your own credit report. Soft pulls are common for promotional offers, insurance quotes, and utility applications, and do not affect your credit score.

Q6.  How can I minimize the impact of hard pulls?

Ans: To minimize the impact of hard pulls, limit new credit applications, use prequalification offers with soft pulls, and shop for loans within a short timeframe. Multiple inquiries for the same type of loan may count as one, protecting your credit score during rate shopping.