Understanding the difference between a hard pull and a soft pull credit inquiry is essential for managing your credit profile and financial health. A hard pull, also known as a hard inquiry, occurs when a lender or creditor reviews your credit report as part of the application process for a loan or credit card. Hard pulls are typically initiated when you apply for new credit, such as a mortgage, auto loan, or credit card, and can have a temporary negative impact on your credit score.
On the other hand, a soft pull credit inquiry, also referred to as a soft inquiry, occurs when you or a third party checks your credit report for informational purposes, such as pre-approval offers, background checks, or credit monitoring services. Unlike hard pulls, soft pulls do not affect your credit score and are not visible to lenders or creditors when they review your credit report.
It is important to be aware of the type of credit inquiry being conducted and to minimize the number of hard pulls on your credit report to maintain a healthy credit score. Regularly monitoring your credit report and understanding the factors that can impact your credit score, including the frequency and type of credit inquiries, can help you make informed financial decisions and take proactive steps to improve your creditworthiness and achieve your financial goals.
