Soft Credit Check: What It Is and How It Works

A soft credit check is a review of your credit report that doesn't affect your credit score. Soft credit checks can happen when you check your own credit, when a lender prescreens you for an offer, when an existing creditor reviews your account or when certain employers check your credit report with permission.

A soft credit check is also called a soft inquiry or soft pull. It’s different from a hard credit check, which usually happens when you formally apply for new credit.

Key Takeaways

• No score impact: Soft credit checks don't lower your credit score.

• Permission is not always needed: Lenders, employers and landlords can run soft pulls in specific situations allowed by law.

• Only you see them: Soft inquiries appear on your personal credit report but aren't visible to lenders.

• Short shelf life: Soft inquiries stay on your credit report for up to 12 months.

• Common triggers: Checking your own credit, preapproved offers, background checks and insurance quotes can all involve soft credit checks.

Summary generated by AI, verified by MoneyLion editors

What Is a Soft Credit Check and How Does It Work?

A soft credit check is a snapshot of your credit report that lenders, employers or you can run without affecting your credit score. It pulls limited information, like your payment history, account balances and credit age, but it's not tied to a formal credit application.

Because it's not a formal application for new credit, it doesn't show up to outside lenders reviewing your file. The Consumer Financial Protection Bureau (CFPB) says soft inquiries don't affect credit scores and are shown only to you when you review your own credit report.

What Are Common Examples of a Soft Credit Check?

Soft credit checks happen more often than most people think. Common examples include:

• Checking your own credit report or score

• Preapproved credit card and loan offers in the mail

• Employer background checks during hiring

• Insurance quotes for auto or homeowners insurance

• Account reviews by a current credit card issuer or lender

• Apartment rental applications run by some landlords

• Utility setup for electric, gas or internet service

Soft checks are common and usually don't require action. They don't mean you applied for new credit.

What Is the Difference Between a Soft and Hard Credit Check?

The main difference is impact. A soft credit check doesn't affect your credit score, while a hard credit check can lower it by a few points and stays on your report longer.

The table below breaks down how the two compare across purpose, permission, score impact, lender visibility, time on report and common examples.

Does a Soft Credit Check Hurt Your Credit Score?

No. A soft credit check does not hurt your credit score, according to the Consumer Financial Protection Bureau. Only hard inquiries — which happen when you apply for new credit — can lower your score, and usually by fewer than five points.

You can pull your own credit as often as you want without any score impact.

How Long Does a Soft Credit Check Stay on Your Credit Report?

Soft inquiries stay on your credit report for up to 12 months. After that, they drop off automatically. Hard inquiries, by comparison, can stay on your report for up to two years.

Can Lenders See Soft Credit Checks?

Generally, no. Soft credit checks are usually visible only to you when you review your own credit report.

That means a lender reviewing your report for a credit card, mortgage, personal loan or auto loan application generally won't see your soft inquiries. Hard inquiries are different because lenders can usually see them when reviewing your credit report.

Is Prequalification a Soft Credit Check?

Often, yes. Many lenders use a soft credit check for prequalification because it lets them estimate whether you may qualify before you submit a formal application. Prequalification can help you review:

• Potential APR

• Estimated loan amount

• Possible monthly payment

• Credit card or loan options

• Whether the product may fit your credit profile

Prequalification doesn't guarantee approval. If you move forward with a formal application, the lender may run a hard credit check.

MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you.

What Is the Difference Between a Soft Pull and Prequalification?

A soft pull is the type of credit check used. Prequalification is the process.

For example, a lender may use a soft pull to estimate whether you may qualify for a personal loan, credit card or financing offer before you formally apply. If you decide to continue with a full application, the lender may then run a hard inquiry.

Can You Get a Loan With Only a Soft Credit Check?

You can often check potential loan offers with a soft credit check, but final approval usually requires a hard credit check. A lender typically needs a full application and credit review before it can issue final loan terms.

Soft-check tools can still be useful. They help you compare offers before applying and may reduce unnecessary hard inquiries for products that don't fit your credit profile.

Why Do Soft Credit Checks Appear on Your Report?

Soft inquiries may appear on the version of your credit report you see because they are part of your credit file history. They may show that you checked your own credit, were reviewed for a prescreened offer or had an existing creditor review your account.

Seeing a soft inquiry does not mean your score dropped. It also doesn't mean someone opened credit in your name.

If you see an inquiry you don't recognize, check whether it is listed as soft or hard. A soft inquiry is usually less concerning, but an unfamiliar hard inquiry may be worth reviewing for possible fraud or an error.

Can a Soft Credit Check Be Done Without Your Permission?

Yes, in some cases. Current lenders, preapproved offer providers and certain background-check requesters can run soft pulls under federal law without separate written consent, according to the Federal Trade Commission (FTC).

That said, some situations still require notice or permission. For example, employment credit checks generally require employer compliance with federal and state rules. If you're unsure why a company reviewed your credit, contact the company or the credit bureau listed on your report.

How To Use Soft Credit Checks Strategically

Soft credit checks can help you make better borrowing decisions without score damage.

A soft check is useful before a hard application. It helps you decide whether applying is worth the potential hard inquiry.

What To Do if You See an Inquiry You Do Not Recognize

If you see a soft inquiry you don't recognize, it may be from a prescreened offer, account review or company name you don't immediately recognize. Since soft inquiries don't affect your score, they usually aren't urgent.

If you see a hard inquiry you don't recognize, take it more seriously.

Steps to take:

1. Check whether the inquiry is soft or hard.

2. Look up the company name. Some lenders use partner names or parent-company names.

3. Review whether you recently applied for credit, financing or preapproval.

4. Check your credit reports at all three bureaus.

5. Contact the company listed on the inquiry if you still don't recognize it.

6. Dispute inaccurate information with the credit bureau if needed.

The FTC explains that consumers can dispute credit report errors with the credit bureau and the company that reported the information.

The Bottom Line

A soft credit check is a credit report review that doesn't hurt your credit score. It can happen when you check your own credit, get prequalified, receive a prescreened offer or have an existing creditor review your account.

Soft checks can help you compare offers and monitor your credit without score damage. Just remember that a formal credit application may still trigger a hard inquiry.

Key Terms

• Soft credit check: A review of your credit report that doesn't affect your credit score and is usually visible only to you on your personal credit report.

• Hard inquiry: A credit check tied to a formal credit application that may lower your score by a few points and is visible to lenders.

• Prequalification: An early lender review, often using a soft credit check, that estimates whether you may qualify for a loan or credit card.

• Preapproval: A more detailed lender review that shows you may qualify for credit, though final approval still depends on a full application.

• Credit report: A record of your credit history, including accounts, balances, payment history and inquiries.

Sources:

• Consumer Financial Protection Bureau: What kind of credit inquiry has no effect on my credit score?

• Consumer Financial Protection Bureau: What is a credit inquiry?

• Consumer Financial Protection Bureau: What's the difference between a prequalification letter and a preapproval letter?

• Consumer Financial Protection Bureau: What is a credit report?

Summary generated by AI, verified by MoneyLion editors

FAQs

Does a Soft Credit Check Show Up on My Credit Report? Yes, but only on the personal copy of your credit report that you pull. Soft inquiries are not visible to lenders or other third parties reviewing your file.

Can I Dispute a Soft Inquiry on My Credit Report? Yes. If you see a soft inquiry you do not recognize, you can dispute it directly with the credit bureau that listed it — Equifax, Experian or TransUnion — under rights provided by the Fair Credit Reporting Act.

Do Soft Inquiries Affect Mortgage Applications? No. Mortgage lenders generally weigh hard inquiries when reviewing your application, not soft inquiries. Soft inquiries are not factored into your credit score and are not visible to lenders reviewing your credit report.

What Is the Difference Between a Soft Pull and Prequalification? A soft pull is the type of credit check used. Prequalification is the process. A lender may use a soft pull to estimate whether you may qualify for a product before you formally apply.

How Often Should You Check Your Own Credit? The Consumer Financial Protection Bureau recommends checking your credit report at least once a year. You can pull free reports weekly from each of the three credit bureaus through AnnualCreditReport.com.

Can a Soft Credit Check Be Done Without Your Permission? Yes, in some cases. Current lenders, preapproved offer providers and certain background-check requesters can run soft pulls under federal law without separate written consent, according to the Federal Trade Commission.