Soft Inquiry

Soft inquiry summary:

• A soft inquiry is a type of credit check that doesn't impact your credit score.

• Soft inquiries occur when someone checks your credit report for information purposes rather than in response to a credit application.

• Companies don’t always need your permission to do a soft inquiry into your credit.

Soft inquiry definition and meaning

A soft inquiry is when someone looks at your credit report without affecting your credit score. It’s also called a soft credit check or a soft pull. Soft pulls can happen when you check your own credit or when someone else looks at your credit to prequalify you for a loan or credit card.

Key concept: A soft inquiry is when you or someone else checks your credit history for informational purposes only. It doesn't impact your credit score.

More about soft inquiry

There are several advantages associated with a soft credit inquiry. For example:

• No harm to your credit score. A soft inquiry allows you to check your credit history without harming your credit score. As a consumer, you have the right to ensure your credit report is correct and to dispute any mistakes found. Even a small mistake can lower your credit score, and a soft inquiry makes it easier to spot errors without fear of dinging your score. 

• Allows you to prequalify for credit. Many lenders use a soft inquiry to determine if you prequalify for credit. There are two ways this benefits you. First, it prevents you from wasting your time if the lender doesn't believe a formal application would be approved. Second, it provides greater insight into your credit report without harming your credit score. 

• Gives you a heads-up. A soft inquiry lets creditors tell you the likelihood that a formal credit application will be approved. 

• Not visible to creditors. Your credit report lists inquiries into your credit history over the previous two years. Soft inquiries are only visible to you. 

Note that hard inquiries typically do affect your credit score and they are visible to potential creditors. A hard inquiry is when someone checks your credit because you submitted an application. Too many hard inquiries on your credit report could cause a creditor to deny your application. 

Soft inquiry: a comprehensive breakdown

Here are some of the situations that call for a soft inquiry: 

• You check your credit report. As a consumer, you have the right to a free copy of your credit report from the three major credit reporting agencies: Experian, Equifax, and Transunion. Ordering copies of your report is considered a soft inquiry. 

• A credit card company wants to send you a solicitation. If you ever receive a "you’re preselected” letter or email from a credit card company, that offer is based on a soft credit inquiry. 

• You find a rental property you're interested in. Landlords sometimes pull your credit report to get a sense of how well you've managed past financial obligations. Most of the time, these are soft credit checks.

• An employer conducts a background check. A potential employer may request your credit history before offering you a job. This is especially true if the position you're applying for involves money management or requires a security clearance.

• You want an insurance quote. Insurance credit checks are soft inquiries that don’t hurt your score. 

• An existing creditor conducts a checkup. Creditors sometimes conduct soft credit inquiries to check in on existing customers. If you receive a letter that says “We raised your credit limit,” your credit card issuer did a soft inquiry.

Most credit checks require your permission. However, there are a few exceptions to this rule. In these situations, someone might be allowed to check your credit, using a soft inquiry, without giving you a heads up about it first:

• Creditors you already do business with (but you may have given permission for ongoing credit checks when you first applied)

• Businesses that want to prescreen you for offers

• Businesses that are complying with a law to respond to a court order or federal grand jury subpoena, or to administer government benefits or certain licenses

• Agencies responsible for determining child support awards