What Is a Soft Credit Check?

If you're unsure what a soft credit check is or how it compares to a hard credit inquiry, you're not alone. Understanding this distinction is crucial—especially when applying for loans, insurance, or even jobs. In this guide, we’ll break down the purpose of soft credit checks, how they differ from hard pulls, who uses them, and what they mean for your finances.

Key Takeaways

• A soft credit check is a non-intrusive review of your credit report that does not affect your credit score and is only visible to you—not to lenders.

• These inquiries often occur for background checks, pre-approvals, insurance quotes, or when checking your own credit.

• Soft inquiries remain on your credit report for up to 24 months, but they have no impact on your creditworthiness.

• You can opt out of unsolicited soft inquiries and dispute fraudulent ones under the Fair Credit Reporting Act (FCRA).

What Is a Soft Credit Check?

A soft credit check (also called a soft inquiry or soft pull) is a basic review of your credit file. It provides a snapshot of your credit history—without the level of detail found in a hard inquiry. Importantly, soft inquiries do not impact your credit score, even if they occur frequently.

Soft pulls can be performed without your permission in certain cases and are typically used when a full risk assessment is unnecessary.

When Do Soft Credit Checks Happen?

Soft credit checks are more common than you might think. Here are typical situations where one might occur:

1. Employment Background Checks

Employers—particularly those hiring for financial roles—may request a soft credit check to gauge financial responsibility. This can be a factor in roles that involve handling money, sensitive data, or executive decision-making.

2. Insurance Applications

Auto and home insurers may use soft inquiries to evaluate your risk profile. Research shows that individuals with higher credit scores may file fewer claims, so a soft check helps insurers assess potential losses.

3. Pre-Approved Offers

Lenders and credit card companies frequently conduct soft inquiries to determine whether you qualify for a pre-approved offer. While this doesn’t mean you’re guaranteed approval, it’s a way to gauge eligibility before extending an invitation to apply.

4. Checking Your Own Credit

You can check your own credit score or report as often as you like without any consequences. Whether you’re using a free service or a credit monitoring tool, these are always considered soft inquiries.

5. Account Reviews by Current Creditors

Lenders may perform routine soft checks to review your credit health and identify changes that might affect your existing account. This is part of ongoing risk management.

Do Soft Credit Checks Affect Your Credit Score?

No. One of the main benefits of soft credit checks is that they do not impact your credit score, regardless of how many occur. Unlike hard inquiries, which are visible to other lenders and can slightly lower your score, soft inquiries are only visible to you.

Why Soft Credit Checks Matter

Soft inquiries are valuable for both organizations and individuals. They allow for background information gathering without triggering credit score penalties. This makes them ideal for:

• Screening job candidates without harming their financial profile.
• Allowing customers to review their credit health without consequence.
• Helping lenders gauge borrower potential without formal applications.

What Information Does a Soft Credit Check Include?

While soft inquiries don’t reveal as much as hard checks, they still offer valuable insights. Typically, a soft credit check includes:

• Name and address associated with your credit profile
• Credit score (or a credit score range)
• Open credit accounts (but not detailed payment history)
• Credit utilization ratio
  Public records, such as bankruptcies
• Total number of accounts and inquiries

These details provide a high-level view of creditworthiness—enough for employers, insurers, or lenders to screen you without affecting your score.

Who Typically Uses Soft Credit Checks?

Here’s a quick overview of the institutions and individuals who rely on soft credit inquiries:

• Employers (for background checks)
• Insurance Providers (auto, home, life)
• Banks and Credit Unions (for pre-screening offers)
• Landlords (for rental applications)
• Lenders (for account reviews or pre-approvals)
• Consumers (checking their own credit)
• Mortgage Lenders (for pre-qualification processes)

Can I Perform a Soft Credit Check on Myself?

Absolutely—and you should! Here’s how:

• AnnualCreditReport.com: Access your full credit report once per year from each bureau (Experian, Equifax, TransUnion).
• Credit Monitoring Apps: Services like Credit Karma, Experian Boost, and Mint provide free soft credit score checks, often updated weekly or monthly.
• Your Bank or Credit Card Issuer: Many institutions now offer free credit score access within your account dashboard.

Checking your own credit will never harm your score, and it's a smart way to stay informed.

How Long Do Soft Credit Checks Stay on My Report?

Soft inquiries can remain on your credit report for up to 24 months. However, they are only visible to you, not to lenders or creditors. This makes them ideal for monitoring your credit health without affecting your credit profile.

Can I Remove Soft Credit Inquiries?

Generally, soft inquiries are harmless and don't need to be removed. But if you notice a soft inquiry that looks suspicious or unfamiliar, you can take action:

1. Contact the Credit Bureau: File a dispute online with Experian, Equifax, or TransUnion.
2. Reach Out to the Inquiring Party: Ask why the inquiry was made.
3. Report Potential Fraud: If you suspect identity theft, contact the FTC at IdentityTheft.gov.

Soft inquiries related to fraud or unauthorized access can and should be removed from your credit report.

How to Limit Unsolicited Soft Inquiries

Under the Fair Credit Reporting Act (FCRA), you can opt out of unsolicited pre-approved credit or insurance offers that originate from soft pulls.

• Opt-Out Website: Visit OptOutPrescreen.com or call 1-888-5-OPT-OUT to opt out for 5 years—or permanently.
• This prevents credit bureaus from sharing your information for marketing-based soft inquiries.

A Soft Credit Check vs. A Hard Credit Check, What’s the Difference?

Pros and Cons of Soft Credit Checks

Here are a list of pros and cons to this common credit check:

Pros

• No Impact on Credit Score – Check as often as needed without fear of damage.
• Quick and Convenient – This often happens in the background with minimal hassle.
• Helpful for Pre-Screening – Lenders and employers can assess candidates with little risk.

Cons

• Limited Information – Not as detailed as hard inquiries, making them less useful for final lending decisions.
• Not Visible to Other Lenders – A lender can't see if you’ve recently received other pre-approvals.
• Does Not Guarantee Approval – A pre-approval based on a soft check isn’t a loan guarantee.

Understanding how soft credit checks work can empower you to make smarter financial decisions. They offer a risk-free way to monitor your credit, explore lending options, or undergo background screening. While soft checks won't get you a loan on their own, they’re a valuable first step.