Soft Pull vs Hard Pull: What Borrowers Should Know
The two kinds of credit checks
When you shop for a loan, you’ll encounter soft credit checks and hard credit checks. A soft pull is informational and doesn’t affect your score; a hard pull is used for final approval and can cause a small, temporary dip.
Soft credit check (soft pull): when and why
A soft pull happens when you check rates, use a marketplace to compare offers, or monitor your credit. Lenders use it to estimate your APR and payment based on your inputs and credit data.
- No impact to credit score
- Lets you compare unsecured loans vs secured loans
- Helps you avoid applying for the wrong product
Hard credit check (hard pull): when it occurs
A hard pull occurs when you submit a full application and consent to final underwriting. It’s combined with income verification, identity verification, and bank account verification.
How many hard pulls are okay?
Keep hard pulls minimal. Use soft‑pull prequalification to filter choices, then proceed to hard pull only for your 1–2 best matches.
Improve approval odds before you apply
- Lower credit utilization if possible.
- Fix report errors; lift any credit freeze temporarily.
- Have documents ready: pay stubs, W‑2/1099, bank statements.
- Pick a realistic loan term vs payment to keep the DTI in check.
What to read in lender disclosures
Review the origination fee, late fees, grace period, and any prepayment penalty. Understand the full loan repayment schedule, and whether the rate is variable or fixed. Compute the total loan cost.
Funding speed: what a hard pull doesn’t control
Timing hinges on rails—ACH transfer time, same‑day ACH, push‑to‑debit, real‑time payments—and your bank cutoff time. Ask about weekend/holiday support and “fast loan deposit” policies.
Bottom line strategy
- Shop with soft pulls to compare.
- Cut to 1–2 options that disclose fees clearly and fit your budget.
- Proceed to hard pull only when the math and terms are right.
Keep learning: See Definitions or more guides on our blog.