What is Soft Pull on Credit Cards?

Soft Pull on Credit Cards: What You Need to Know

As a credit card expert, it's important to understand the different types of credit checks that credit card companies use. One type of credit check is known as a soft pull. In this article, we'll explain what a soft pull is, how it differs from a hard pull, and why it matters.

What is a Soft Pull?

A soft pull is a type of credit check that does not affect yourcredit score. It is also known as a "soft inquiry" or "soft credit check." Soft pulls are typically used for background checks, pre-approvals, or to give you credit score updates. Credit card companies may also use soft pulls to determine if you qualify for certain credit card offers.

How is a Soft Pull Different from a Hard Pull?

A hard pull, also known as a "hard inquiry" or "hard credit check," is a type of credit check that does affect your credit score. Hard pulls are typically used when you apply for credit, such as a credit card or a loan. Hard pulls show up on your credit report and can lower your credit score, especially if you have multiple hard pulls in a short period of time.

Why Does a Soft Pull Matter?

A soft pull can be useful if you want to check your credit score or see if you qualify for certain credit card offers. Since a soft pull does not affect your credit score, you can check your credit score without worrying about any negative impact. Additionally, if you receive a pre-approval offer for a credit card, it's usually based on a soft pull. This means that you can apply for the credit card without worrying about a hard pull lowering your credit score.

How to Check if a Credit Card Company is Using a Soft Pull

If you're not sure if a credit card company is using a soft pull or a hard pull, you can ask them directly. You can also check your credit report to see if any credit inquiries have been made. Soft pulls will not show up on your credit report, while hard pulls will.

Tips for Applying for Credit Cards

When applying for credit cards, it's important to be aware of the potential impact on your credit score. Here are some tips to keep in mind:

- Only apply for credit cards that you need or want.

- Apply for credit cards one at a time, to minimize the impact on your credit score.

- Check your credit score and credit report regularly, to make sure there are no errors or fraudulent activity.

- Consider credit cards with no annual fees, to avoid unnecessary costs.

- Be aware of the terms and conditions of the credit card, including interest rates, fees, rewards, and any potential risks.

In conclusion, understanding soft pulls on credit cards can help you make informed decisions when it comes to applying for credit. By knowing the difference between soft pulls and hard pulls, and being aware of the potential impact on your credit score, you can choose the right credit cards for your needs and avoid unnecessary risks and costs.