Do Soft Credit Checks Really Impact Your Credit Score? 3 Things To Know

*This is a collaborative post on how soft credit checks impact your credit score

You’ve probably heard of soft credit checks and may wonder what they are and how they impact your credit score. Soft credit checks are when a lender does a pull on your credit report to see if you’re eligible for a loan or line of credit. Unlike hard inquiries, soft inquiries don’t have a negative impact on your credit score. They can be helpful. Here’s everything you need to know about soft credit checks.

What is a soft credit check?

A soft credit check, also sometimes called a soft pull, is when a lender looks at your credit report to determine whether or not you’re eligible for a loan or line of credit. Unlike a hard inquiry – which happens when you apply for new credit – a soft inquiry won’t have a negative impact on your credit score. These checks may also happen when someone checks your credit report for non-lending purposes. For example, if you’re applying for a job, the employer may do a soft credit check as part of their background check process.

How does a soft credit check impact my score?

As we mentioned before, a soft credit check will not have any negative impact whatsoever on your score. This is because a soft credit check is not considered a negative event by the credit bureaus. It could help you in the long run because it can be useful in building your credit history if you don’t have much history to begin with. This is because each time you have a new account or loan inquiry, it helps to build your “credit footprint.” 

​​Your credit footprint is your financial identity. All the information in your credit report, including your payment history, account balances, and more. The more information in your credit footprint, the easier it is for lenders to assess your risk level and make lending decisions. So, while a single soft credit check won’t impact your score, it can help to build your overall credit profile – which can be helpful if you’re looking to take out a loan or open a new line of credit in the future. 

3 things to know

Now that you know what a soft credit check is and how it impacts your score, here are three things you should keep in mind:

1. A soft inquiry will never hurt your score – in fact, it may even help. 
2. Soft inquiries may be carried out by other parties than just lenders. 
3. If you’re ever unsure about whether or not an inquiry is going to be hard or soft, just ask beforehand. They should be able to tell you without any trouble. 

Remember, these inquiries will never hurt your score, so there’s no need to worry about them. If anything, they may even help you in the long run by building trust between you and your lender. So don’t worry if you’re ever asked to consent to a soft credit check; give it the green light.