Soft Pull: The Credit Check That Costs No Points
See when a soft pull happens and what to ask before you share your details.
Definition
A soft pull is a look at your credit report that does not change your credit score. It is also called a soft inquiry.
Think of a soft pull as peeking through a shop window. Someone gets a look at what is inside, but nothing is bought and nothing is recorded against you.
Lenders typically use language like 'checking your rate won't impact your credit score'
When you will see one
- You check your own credit report.
- You prequalify or check your rate.
- A company sends you a pre-approved offer.
- An employer runs a background check.
- An insurer checks your credit
Know the process
Credit checks happen in a rough order, and the soft pull comes before the hard pull. Where the hard pull lands depends on the product and the lender.
- Research. Checking your own credit is a soft pull.
- Prequalification or rate check. This is usually a soft pull, though not always.
- Pre-approval. This step is the least consistent. Lenders use the term differently, and it can be either type.
- Formal application or consent. This is where a hard pull usually starts.
- Funding. A few lenders wait until here.
Facts worth knowing
- A soft pull never lowers your score, no matter how many you have.
- Most soft pulls show only to you, and they can stay on your report for up to two years.
- A soft pull does not promise approval or final terms, and not every prequalification uses one.