Soft. vs. hard credit check. What’s the difference?
A soft credit check will not impact your credit score or show up on your credit report. It’s a good place to be, but it’s going to be a bit of a pain. Another difference? A lender requires your consent before doing a hard credit check, but this is not the case for a soft credit check.
When companies use a soft credit check vs. a hard credit check:
What is a soft credit check?
Most soft credit checks are done to “pre-qualify” you for some type of offer. If you’ve ever received a credit card in the mail, the credit card company might have a credit check on you. Other types of loans and credit insurance.
What is a hard credit check?
Companies do a hard credit check when they are making a “lending decision”, or giving you access to credit. If you’re “pre-qualified” for a credit card offer, you’ll need to give credit card company permission to make a credit check before they can finalize the application and give you credit card.
Examples of soft vs. hard credit checks:
Soft credit check
Hard credit check
Protect your credit score by minimizing hard credit checks
It’s typical to see your credit score drop a few points after one or two hard credit checks. Other than that, a hard credit check should not be too much of a significant impact on your credit. However, you can have a negative affect your credit score.
Since it is possible for you to access the credit card, you may be able to claim it.
Lenders look at a variety of criteria when deciding whether to lend to you. The most important criteria for our scenario is debt to income ratio.
Debt to Income Ratio (DTI): Debt to income ratio represents how much your debt depends on how much you earn. It’s more than likely to pay more than 36%.
While you may be shopping around for the best rate, you might expect that you’ll be following through with every inquiry. If you took a payday loan, you would have to pay more, and you would have to pay more.
Does my credit score affect my credit score?
Interested in shopping around for the best rate? At our online loan quote is a good credit check to help you estimate how much money you could qualify for (and find out what your payments could be). Since we use a soft credit check, the loan will not be visible to other lenders. We’ll only give you a credit check if you’re happy with your loan.
The best part about our loan quote? It’s simple, secure and only takes a few minutes.