What is a Soft Inquiry? How Card Issuers Check Your Credit Without Affecting Your Credit Score

Now, the softest inquiry I ever made was when I asked my sweetheart to marry me — about 47 years ago! 

But today, we are going to talk about something quite different: a credit soft inquiry. That’s when someone takes a gander at your credit without bringing down your score.

A soft inquiry is a credit check that does not affect your credit score and typically occurs when you check your own credit or when a company preapproves you for an offer.

You don’t have to get down on one knee or pull out a diamond to make a soft inquiry. Heck, it happens when you just check your own credit. Now, let me carry you over the threshold (of knowledge) and show you just how these inquiries work versus those mean old hard ones and what people commonly use them for. 

Knowing about this might not change your life entirely, but it sure can help you get a handle on things — at least a little bit!

You all should get into what soft inquiries are and how they differ from hard inquiries. Soft inquiries do not beat your credit score to death, like a possum that gets hit by a truck. Know the difference between the two to keep your credit in fine shape.

Now, these two types are pretty important to understand — especially when you’re trying to keep your credit score looking polished. While hard inquiries can ding your score, soft ones just pass through like a breeze.

A Less Thorough Version of a Credit Check

A soft inquiry is like taking a weather check before heading out to plow the back 40 — it’s information that doesn’t mess with anything. When a person makes a soft inquiry of your credit, it’s just like a friendly neighbor peering over the fence. They don’t dig all that deep, and it won’t affect your well-being.

When compared to a hard inquiry, a soft inquiry is as harmless as a mouse sneaking through a church. Soft inquiries can happen without anyone notifying you. Now, don’t get paranoid — there’s a record of soft inquiries in your credit reports, and only you can see it.

When credit card companies or lenders scout for customers, they may make a soft inquiry to see if you’re a potential fit for a preapproved offer. Creditors cast the line and hope they catch something. 

How Soft Inquiries Impact Your Credit Report

Soft inquiries remain on credit reports for two years but never weigh them down. You can easily spot them, but the rest of the world will never see the little fellas peeking out from the bush. They are harmless, like a friendly pat on the back — nothing to worry about.

Since only you can see them, they can’t spook lenders who may worry about your creditworthiness. They are just a little heads-up that someone stole a look. 

Lenders care more about hard inquiries because they are a sign that you’re looking for new credit, and many hard inquiries at once could indicate that you are experiencing financial challenges or that money is tight. Soft inquiries are like a whisper in the wind and are not worth fretting over.

Imagine the difference between a butterfly fluttering in the breeze and a bull elephant stomping across the African plain. The butterfly flits on by, hardly leaving a mark on the planet, while the elephant tromps through, mashing and crunching and peeling off tree bark.

Soft inquiries are as light as a feather, the butterflies of the credit world. But hard inquiries? They’re the elephants that, when you apply for a loan or credit card, leave tracks — in the form of a little dip in your credit score.

Here’s a table that sums up the differences:

So, whether a soft inquiry is about checking your own credit or just poking around for a new card, they keep things as smooth as butter. But when you invite hard hitters to the party, they leave behind marks for all to see that you’ve been looking for new credit.

Knowing how soft inquiries are used helps you determine how folks or institutions form credit opinions about you. You might be surprised by some ways these inquiries pop up.

Credit Card Preapproval

When financial institutions send you preapproved offers in the mail, they normally perform a soft credit pull to see whether you qualify first. They’re just taking a peek at your credit without scuffing it up, like a friendly nod from across the room.

There’s a world of difference between those preapprovals that show up in your mailbox and the ones you go out and ask for yourself. The ones you get in the mail are just freebies — issuers think you might bite, but you didn’t ask for them. Credit card issuers send them based on soft pulls, and if you’re interested, you can follow up.

On the contrary, when you go online and seek preapproval yourself, you can take the reins. You are asking to see what offers are out there for you. It’s still a soft inquiry, so your credit score isn’t going to take a hit. It’s like test driving a truck — you’re trying it on for size without buying it just yet.

Yet, remember that preapproval only gives you an idea of what things may look like once you go all in. It is not a guarantee, and the outcome depends on what the issuer finds out when it runs a hard inquiry on you.

There’s no sense in applying for a card and wasting a hard inquiry on a long shot if you don’t receive preapproval. If you’re not preapproved, trying to strong-arm through an application is like trying to push a mule that doesn’t want to move — it’s only going to waste your time and will take your credit score down a few points along the way. 

Hard inquiries leave marks, and too many of them can drag your score down like a sack full of bricks. Soft pulls let you shop around, see what’s out there, and size up your chances without a trace. The difficult part is that some credit card issuers will not give a straightforward answer to preapproval for a specific card.

Instead, they may throw you a list of suggestions and leave the next move to you. Interestingly, some credit card options may not even perform hard checks. If you’re set on one of these smooth-sailing options, you can skip the whole preapproval song and dance and dive headfirst into applying. 

No hard pull means no fuss — like finding a shortcut through the woods instead of taking the long, twisty road. You’ll be coasting along — it’s a piece of cake.

Employment and Rental Background Checks

Nowadays, employers and landlords pull soft inquiries to find out whether you are the kind of person they want to deal with.

It’s not going to ding your credit score; it’s just part of due diligence so that they know what type of credit you have (if any). Remember that the law is on your side. There are some regulations devoted to these credit checks that employers and landlords must follow.

If you apply for a job they may perform a soft credit pull to see if you are the responsible sort, but not without your permission.

In most cases, they must ask for your permission before they get access to even a soft pull of your credit. They cannot flat-out deny you a job or a place to live based on what is inside your reports. They must be upfront about their reasoning, and they have to give you a chance to explain yourself if something doesn’t look quite right.

What they’re looking for is whether you’ve been paying back the money you’ve borrowed. They can check on your credit payment history and any outstanding debts. If you’ve been as regular as a rooster crowing at dawn with your bill payments, you’ll look mighty fine to them. But if you’ve been dragging your feet repaying your loans, that could make them hesitate. 

Personal Credit Monitoring

Since the COVID-19 pandemic, the big three credit bureaus — Experian, Equifax, and TransUnion — have been providing free copies of your credit reports. 

These free reports let you keep an eye on your credit health. And pulling it yourself won’t cost you a lick in terms of your score. You can check as often as once per week and can check all three at AnnualCreditReport.com without worrying about hard inquiry penalties.

Pulling your own credit report is like looking in a mirror — most of us want to make sure we’re still as handsome as ever! You are just poking under the hood, so to speak, seeing how your financial engine’s running. It is a good practice to follow, as you would like to be sure everything is running smoothly before something goes wrong.

When you find something out of place, such as an error or an account that is not yours, it’s time to get down to work. You will have to contact the credit bureau where the mistake was made and file a dispute. Here are a few things you’d best watch out for because they may be red flags:

• Accounts you don’t recognize: Maybe some sneaky varmint is trying to swipe your identity.
• Payment history mistakes: Sometimes, a credit card issuer marks you late when you have been as prompt as the daily express train.
• Hard inquiries you didn’t authorize: Someone could be trying to open a credit card in your name.
• Sudden dips in your score: This could mean something big got reported, such as a missed payment or new debt piling up.

The bureaus must respond within 30 days, so you may have it all worked out in short order. Make a point of checking each of your three credit reports every now and again so that trouble can’t pop up like weeds after a good spring rain. Pulling your own credit reports lets you see exactly what the issuers see when they size you up for a credit card. 

Knowing what’s in your reports helps you monitor your credit standing, like a border collie watching over the flock. Keeping an eye on things enables you to stay in control, avoiding pesky surprises such as identity theft or unauthorized hard inquiries sneaking in.

Soft inquiries let you see where you stand with your credit without leaving any damage behind. Whether you’re checking your own report or scouting out preapproval offers, these inquiries give you the skinny without knocking down your score.

So, soft inquiries are a good friend if you want to know what is going on with your credit and that everything is fine. You can check things out as often as you like, all while keeping your score squeaky clean. These inquiries help you stay in control of your finances, and that’s half the battle!