What is a Soft Pull in a Credit Check and When Does it Happen?

A soft pull, sometimes referred to as a soft credit check or soft inquiry, is a type of credit report inquiry that does not impact your credit score. Unlike a hard pull, which involves a transaction or application process for credit, a soft pull is a less invasive form of credit checking.

Overview of Soft Pulls

A soft pull occurs when you or a third party, with your authorization, views your credit report. It can also happen when a company, such as a credit card issuer or mortgage lender, runs a check to preapprove you for a specific offer. These inquiries are marked as 'soft' and do not affect your credit score. Instead, they provide a general overview of your credit history, including lines of credit, loans, payment history, and any collections.

What is a Soft Pull?

A soft pull is a background check conducted by a credit card company or lender for prequalification purposes. This type of inquiry involves a basic review of your credit report, focusing on your overall creditworthiness without delving into detailed financial information. Since it's not associated with a specific application or transaction, your credit score remains unaffected by these inquiries.

Types of Soft Pulls

Self-Checks: When you access your own credit report from a credit reporting agency, such as Experian, TransUnion, or Equifax. Employer Checks: Employers can check your credit to assess your financial responsibility. While it can reveal late payments or collections, it doesn't necessarily affect job prospects unless the job involves financial responsibilities. Credit Card Pre-Qualification: Credit card companies may perform soft pulls to determine if you qualify for a pre-approved credit card offer. Insurance Quotes: When seeking auto, home, or any other type of insurance, a soft pull of your credit report can occur during the quoting process.

Contrast with Hard Pulls

In contrast, a hard pull or hard inquiry is necessary when a creditor needs to access your full credit report as part of a decision-making process to extend credit. Hard pulls can have a temporary impact on your credit score, particularly if multiple hard pulls occur within a short period.

Conclusion

Soft pulls are an essential tool for understanding your credit health without damaging your credit score. Whether you're being prequalified for a credit card, seeking insurance, or simply monitoring your own credit report, soft pulls provide valuable insights into your financial standing. However, it's important to be aware of who is requesting a soft pull and the reasons behind it to maintain control over your personal information.

Stay informed and proactive about your credit health to ensure a smooth financial journey!