Soft vs Hard Credit Pulls

 Not every credit check affects your score. Some simply let you review where you stand. Others happen when you formally apply for credit.

Here is the difference—without the credit-industry fog.

What is a Soft Credit Pull

A soft credit pull reviews information from your credit report without affecting your credit score.

Soft pulls may be used when:

• You check your own credit
• A lender performs an initial credit review
• A company determines whether you qualify for a promotional offer
• An existing creditor reviews your account

Soft inquiries are not visible to other lenders reviewing your credit report.

The Botton LIne on Soft Pulls

A soft credit pull:

• Does not lower your credit score
• Can provide useful information for early mortgage planning
• May help identify credit problems before you formally apply
• Lets you explore your options without leaving footprints all over your credit report

It is looking—not touching.

What Is a Hard Credit Pull

A hard credit pull usually occurs when you formally apply for new credit, including:

• A mortgage
• An auto loan
• A credit card
• A personal loan
• A credit-limit increase in some cases

A hard inquiry appears on your credit report and may cause a small, temporary score reduction. The effect varies depending on your overall credit profile; there is no universal point deduction.

Hard inquiries can remain on your credit report for up to two years, although FICO scoring models generally consider them for 12 months.

Can You Shop For a Mortgage Without Destroying Your Credit?

Yes. Credit-scoring models generally recognize that several mortgage inquiries made within a focused shopping period represent one home-loan search—not an attempt to borrow money from everyone with a desk and a logo.

Depending on the scoring model, multiple mortgage inquiries made within approximately 14 to 45 days may be treated as a single inquiry for scoring purposes.

That means you can compare legitimate mortgage offers without treating your credit score like fine china.

Avoid New Credit During the Mortgage Process

Once you begin preparing for a mortgage, avoid applying for unrelated credit unless you have discussed it with your loan officer.

A new car loan, credit card or personal loan can:

• Add a hard inquiry
• Increase your monthly debt
• Change your debt-to-income ratio
• Lower your credit score
• Affect your mortgage approval

That furniture discount looks considerably less exciting when the new account interferes with your home closing.

Start With the Right Credit Review

Concorde Mortgage can help you understand your credit profile, identify potential problems and determine the sensible next step toward mortgage qualification.

No judgment. No runaround. Just straight answers about where you stand and what comes next.