What is a soft credit check - and why it matters for you
What Is a Soft Credit Check?
A soft credit check (also known as a soft inquiry) is a type of credit review that does not impact your credit score. It provides a limited view of your credit profile and is commonly used to verify identity, screen for fraud, or prequalify you for a loan without a full application.
Soft credit checks are typically used for:
- Prequalification for loans or credit cards
- Background checks by employers or landlords
- Identity verification during online loan applications
- Checking your own credit score through a monitoring service
Unlike hard credit checks, soft inquiries are not visible to other lenders and do not affect your score. That makes them an important tool for borrowers exploring loan options risk-free.
Soft Pull vs. Hard Pull: What’s the Difference?
While both soft and hard credit checks access your credit file, they serve different purposes and have different implications. Here's how they compare:
| Feature | Soft Credit Check | Hard Credit Check |
|---|---|---|
| Impacts your credit score | No | Yes |
| Used to verify identity | Yes | Rarely |
| Used for loan prequalification | Yes | No |
| Visible to other lenders | No | Yes |
| Requires full application | No | Yes |
| Common in payday/personal loans? | Often | Sometimes |
Why Do Lenders Use a Soft Credit Check?
Soft credit checks are a valuable tool for lenders — not just for evaluating applications, but also for improving compliance, reducing fraud, and creating a better customer experience.
- Fraud Prevention: Lenders use soft pulls to verify that your identity information (such as name, address, SSN, and credit file existence) is accurate and not part of a fraudulent application. This step can flag synthetic identities or mismatched personal details early in the process.
- Regulatory Compliance: Soft pulls help lenders meet legal obligations under laws like the Fair Credit Reporting Act (FCRA). It allows them to assess eligibility before initiating a full credit-based decision, which may require disclosures or written consent.
- Streamlined Prequalification: Lenders often use soft pulls to quickly determine if you're eligible — without a full application. This improves the user experience and reduces the number of applicants who get denied after a hard pull.
Why Soft Credit Checks Don’t Affect Your Score
Because soft inquiries are not tied to a formal credit request or credit-seeking behavior, they are not factored into your credit score. Scoring models like FICO and VantageScore ignore soft inquiries entirely — whether you're checking your own credit or getting matched with prequalified offers.
This means you can explore your loan options without any penalty or long-term impact to your credit profile.
Can You Get a Loan with Just a Soft Pull?
Yes — some lenders do approve and fund loans using only a soft pull, especially in the personal loan and payday lending space. These lenders typically rely on a mix of identity data, public records, alternative underwriting methods, and banking information to make a decision.
Others may begin with a soft credit check during the prequalification process and only run a hard inquiry later if you choose to accept the loan offer. Either way, you can compare options risk-free before deciding to proceed.
How to Know If a Lender Uses a Soft Pull
Look for terms like:
- “Prequalify with no impact to your credit”
- “Soft credit check only”
- “No hard inquiry required”
- “Check your rate without affecting your score”
These are clear indicators that the lender is using a soft credit check for the initial application process. If you're not sure, check the lender’s FAQ or disclosures before applying.
Final Thoughts
Soft credit checks are a smart, consumer-friendly way to explore your loan options without risk. Whether you’re applying for a payday loan, personal loan, or line of credit, starting with a soft pull lets you verify your eligibility, compare offers, and move forward with confidence — all without affecting your score.
At Rapid Cash Connect, we make it easy to compare lenders that use soft credit checks. Find out what you qualify for in minutes, with no impact to your credit score.
