Different from hard pulls, which might negatively impact our credit score, soft pulls would make no harmful impact on our financial well-being.
Just like hard pull, soft pull is also known as soft inquiry. Soft inquiry refers to a credit report check that does not affect our credit score.
Soft inquiry happens routinely or spontaneously. It takes place when you give permission to other individuals, such as your potential employer, to check your credit report. And it also happens when the credit card issuers check your credit report monthly.
Some soft inquiries do not need your authorization. For example, the monthly check by your credit card issue. It would not ask for your permission, because that’s their duty and job.
Some people might be worried by unauthorized soft inquiries, because it seems like the credit card issuer might access on customers’ private information. But lots of soft pulls will not give detailed information as a hard pull. An unauthorized soft pull only checks customers’ very basic financial information, which only provides card issuers some evidence that this credit card is used in a legal and healthy way.
Besides, soft inquiry has lots of benefits.
You can use soft pulls to understand your own credit score and access to our own credit report, which enables you to understand your financial well-being better. Lots of credit card companies offer their customers a free credit score assessment, and this assessment is in fact considered as a soft pull. You can utilize this assessment to understand your own credit information and credit profile each month.