The difference between a soft and hard credit inquiry is that soft credit inquiries (or a soft credit pull) will not impact your credit score while a hard credit inquiry (or hard credit pull) will impact your credit score. Learn more about the differences below and how Best Egg uses a soft credit pull when determining potential personal loan eligibility and what offers applicants may be eligible to receive.
Soft credit inquiry or “soft credit pull”
There are two types of soft credit checks:
- Marketing pre-screens credit checks that are pulled by companies to pre-approve you for offers.
- Consumer initiated inquiries that happen when consumers check their own credit score.
Common soft credit inquiry triggers may include:
- Employment Verifications
- Background checks
- Using a third party (such as AnnualCreditReport.com) to check your credit history/report
- In some cases, promotional mail-in offers
- Insurance quotes
Have you recently received a Best Egg pre-approved or preselected offer? Not to worry, checking your rate has no impact on your credit score. When you accept a loan offer after applying, that is when a hard credit inquiry will apply.
What is a Hard Credit Inquiry or “Hard Credit Pull?”
Hard credit inquiries (or also known as a “credit check”) may happen for a few different reasons. They may happen when you ask (or submit an application) for a line of credit or loan with a prospective lender. A hard check may happen when a lender pulls and reviews your credit report to decide on whether you qualify for a loan or line of credit. Hard credit inquiries can also happen when your loan has been funded. Just checking your rate with Best Egg will not impact your credit score as we use a soft pull to determine eligibility for a loan offer. At Best Egg, the hard inquiry happens when you accept a loan offer. These are the types of inquiries that may impact your credit score.
Soft pulls and your credit report
Remember, soft credit pulls (or also known as a soft credit check) will not impact your credit score! It’s a good idea to check your credit report periodically. Did you know you are entitled to a free copy of your credit report annually from each credit bureau? You can do this by visiting annualcreditreport.com. You can verify each inquiry and if needed, dispute any inaccuracies. Keep in mind, if you’re not familiar with some of the company names you see on your credit report, it may be the result of marketing pre-screen activity.
Common hard credit inquiry triggers may include:
- Applying for a mortgage
- Applying for a credit card
- Applying for a loan (student, business, personal or auto)
If you need eggs-tra help understanding your credit report or if you have any questions regarding the approval process of personal loans, please refer to Best Egg’s other resource articles.