What is a Soft Credit Check?

You’ve worked hard to improve your credit score, and the thought of something harming it can be disheartening. Thankfully, not all credit checks affect your score. That’s where soft credit checks come in. 

Considering ways to build your credit? MoneyLion offers a free and convenient way to find offers from our trusted partners to help you improve your credit. A good credit score can lead to lower interest rates and increased borrowing power on loans and credit cards.

Table of contents

• How a soft credit check works

• When does a soft credit check happen?

• Do soft inquiries affect your credit score?

• Who can perform a soft credit check?

• Soft credit check vs. hard credit check

• Who can see soft credit inquiries?

How a soft credit check works

You might be wondering — what is a soft credit check? A soft credit check is also called a soft inquiry or soft pull. It happens when you, someone you authorize, or a company checks your credit. It’s only visible to you; some credit bureaus don’t report it. That means this type of inquiry doesn’t impact your credit score, making it a worry-free way to review your credit.

When does a soft credit check happen?

Soft credit checks happen under several different scenarios. Some you do yourself, and some you may not even be aware of. All are harmless.

Checking Your Score

Looking at your credit score is completely fine. It won’t bring your score down, and checking could even help you if you notice any discrepancies. Think of it as a routine checkup for your credit.

Applying for an Apartment

Landlords may check your credit score to assess how likely you are to pay your rent on time. It’s a soft pull, so don’t sweat it. This check helps them clear your rental application process so that you can rent that dream apartment!

Preapproved credit offers

Sometimes, potential lenders will do a soft pull on your credit before preapproving you for a credit card. Preapproval means they’re offering you the card without requiring a hard pull on your credit. The preapproval won’t hurt your credit score, since it only requires a soft inquiry. This is a good way for banks to extend offers without damaging your credit.

👉 Prequalification vs Preapproval: Key Differences Every Cardholder Must Know

Background checks by potential employers

Some employers will check your credit score to gauge your reliability. Irresponsible financing can be a red flag to employers. Employers may also use a soft credit check to verify your identity. While it might seem a bit invasive, it’s just one more way employers ensure they’re making a solid hire.

Rate shopping for loans, credit cards, etc.,

Not all credit cards and loans are created equal. Some companies may offer better rates or better promotional deals. It’s a good idea to see if certain lenders offer better rates. 

Remember that applying for credit can result in a hard credit pull, impacting your credit score. To avoid that, use the preapproval option so the lenders only do soft pulls, which won’t harm your credit score. It’s like window shopping for credit — no commitment or negative impact.

Account reviews by existing lenders

Certain lenders routinely review accounts to ensure you’re running a tight ship. These routine credit reviews help lenders anticipate any potential issues. They could also result in new offers and deals. These reviews check that you’re in good standing, possibly leading to lower interest rates.

Do soft inquiries affect your credit score?

There’s no need to fret: a soft credit pull does not affect your credit score. When it comes to credit checks, only hard pulls will impact your score. Soft pulls provide more information without harming your credit.

Who can perform a soft credit check?

You, a company, or an individual looking to enter an agreement with you can initiate a soft credit check. Anytime you look at your own score, it is technically a soft pull, and it’s a good idea to do that! 

Checking your own credit score can motivate you to improve it. It also gives you the opportunity to notice any red flags or discrepancies in your report. Regular self-checks can help you catch errors early and stay informed about your financial status.

Soft credit check vs. hard credit check

Hard credit checks happen when you apply for a loan or new line of credit. Unlike soft pulls, hard inquiries can negatively impact your credit score. They stay on your credit report for up to two years. Since credit checks account for 10% of your overall score, you don’t want to apply for credit willy-nilly. Hard checks are like the “big guns” — you only want to use them when absolutely necessary.

Who can see soft credit inquiries?

Soft credit inquiries are only visible to you and the company that initiated the soft pull. Other lenders and companies can’t see them. So, check your score as often as you’d like! Soft pulls are helpful reminders to keep your credit going strong.

Soft and Standard

People sometimes get a little nervous when they hear the term “credit check.” Many think it automatically means a blow to your credit score. That isn’t always the case; a soft credit pull typically won’t harm you and can often help you. 

FAQs

What is a soft inquiry?

A soft inquiry, also known as a soft credit check, or a soft pull, is a review of your credit history that doesn’t affect your credit report. Existing and potential lenders can issue these credit pulls. You can also consider a soft inquiry when you check your own credit score. 

How many points does a soft inquiry affect credit score?

Soft inquiries do not affect credit scores. 

How long does a soft credit check stay on my credit report?

Soft credit checks stay on your credit report for two years but are only visible to you.  

Is there a limit to how many soft credit checks can be performed?

There is no limit to the number of soft credit checks that can be performed on an account. 

Do soft credit checks require my permission?

You do not have to grant permission for a company to perform a soft credit check. Lenders often do this without your knowledge to offer a preapproval for a line of credit.