What Are Soft Inquiries? 3 Reasons Why You Shouldn’t Worry About Them

soft inquiries

Typically, inquiries being carried out on your credit report are nothing to worry about. Different businesses and companies check your report when you apply for a credit card or a loan. Although these inquiries will show up on your report, not all of them affect your credit score. In this regard, soft inquiries should be least of your worries! Here’s why.

1. Soft Inquiries Are Just A Check!

A soft inquiry or a soft credit pull is a check you yourself authorize to someone like a potential employer. Such inquiries also take place when a bank or a credit card issuer wants too see how deserving you are for a pre-approved offer. Soft credit inquiries are just a routine check and they don’t impact your credit score in any way. Example of such inquiries include:

  • When you check your own credit report. You can do so by contacting any of the 3 major credit bureaus namely Experian, TransUnion or Equifax. Each customer is allowed to draw a free credit report once in a year.
  • A current creditor wants to have a look at your credit.
  • A check by the companies who want to add you to the list of pre-approved customers for particular offer.

2. Soft Inquiries Are Different From Hard Inquiries

All types of credit inquiries will show up on your report. However, it is only the hard pulls that can cause your score to take a dip. Hard inquiries can account for up to 10% of your total FICO credit score and the affect will be evident for atleast 12 months. A check bank, credit card issuer or a lender does on your report when you apply for a credit or loan is an example of hard inquiry.

Attention! “If you have questions about whether an inquiry will be hard or soft, you can ask the company who is pulling your credit report. You will want to minimize hard inquiries if you are trying to maintain a good credit score and especially if you are planning to apply for a major loan soon.”

3. Don’t Worry! Your Credit Score Will Not Suffer

It is common for users to ask “Do soft inquiries affect your credit score?” Fortunately, they do not. Therefore, you don’t need to fret about your oh-so-precious score. Also, lenders and credit card issuers do not view soft inquiries as a risk at all. You are safe! Hard inquiries on the other hand will be checked as soon as you initiate an application.

Nonetheless, Such Inquiries Still Show Up On Your Report

Just because soft pulls don’t affect your credit score does not mean they will not be visible on your credit report. You can get a copy of your report from any of the credit bureaus and view the soft inquiries for free once every year. Typically, they will have a separate section on the report. Also, keep in mind that if you check your report from, let’s say Experian, then it would be added as a soft pull on the report produced by that particular bureau. Your record from others like TransUnion and Equifax will come out clean.

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