A soft credit check is a credit report that does not hurt the consumer's credit score, does not place an inquiry on their credit report, and requires the customer's written permission to pull their report. Typically, a soft pull is used when a company wants to know whether or not their customer would qualify for a loan if they applied. This will help the business present correct pricing terms and suitable loan products.
Checking your credit profile doesn’t impact your credit. In fact, checking in regularly can help you figure out key areas to work on to build your score.
Whether you want to get a credit card, buy a home, buy a new car or get another type of loan, your credit profile is a key factor in the lender’s decision to approve you.
It can also impact your interest rates. A good credit profile can often mean lower interest and better rates on loans and credit cards. If you have a weaker profile or no credit profile at all, you may have trouble getting credit and will likely pay higher interest rates and fees if you are approved.
Utmost offers a Soft Pull Credit option, to request your credit score for Pre-qualification.
A mortgage preapproval can result in a hard inquiry on your credit report, which can temporarily lower your credit score by a few points. That said, getting preapproved for a mortgage is an important step in the home buying process and is highly recommended.
When you apply for credit, like a mortgage, car loan, student loan, credit card or personal loan, lenders will check your credit by performing a hard inquiry that will cause your score to temporarily drop slightly. If you apply for several loans of the same type within a short period – such as a car loan and mortgage over a week – credit bureaus will likely treat multiple hard inquiries as a single inquiry to minimize the impact and protect your credit score.
A soft inquiry occurs when your credit is checked without you applying for new credit. Soft inquiries don’t cause your credit score to rise or fall. Checking your own credit is an example of a soft inquiry. When someone else checks your credit, but you’re not applying for credit, that’s also a soft inquiry, and it won’t hurt your credit score. Common examples include a utility company looking at your payment history, an employer running a background check or a creditor increasing your credit limit.