How Does a Soft Pull on Credit Cards Affect Your Credit Score?

Soft Pull on Credit Cards: What You Need to Know

When applying for a credit card, you may have heard the terms "hard pull" and "soft pull" being thrown around. While a hard pull can affect yourcredit score, a soft pull typically does not. But what exactly is a soft pull and how does it affect your credit score? In this article, we'll explore what a soft pull is, how it differs from a hard pull, and what impact it may have on your credit.

What is a Soft Pull on Credit Cards?

A soft pull, also known as asoft inquiryor a soft credit check, is a type of credit inquiry that does not affect your credit score. Soft pulls are typically used by lenders or credit card companies to pre-approve potential customers, to check creditworthiness for promotional offers, or to monitor current customers' credit profiles. Soft pulls can also be done by individuals for personal reasons, such as checking their own credit score or monitoring for fraud.

How Does a Soft Pull Differ from a Hard Pull?

Unlike a soft pull, a hard pull (also known as ahard inquiryor a hard credit check) can affect your credit score. Hard pulls are initiated when youapply for credit, such as a credit card, loan, or mortgage. These inquiries are recorded on your credit report and can lower your credit score by a few points. Hard pulls typically stay on your credit report for two years and can impact your credit score for up to a year.

What Impact Does a Soft Pull Have on Your Credit Score?

As mentioned earlier, a soft pull does not have a direct impact on your credit score. This means that if a credit card company does a soft pull to pre-approve you for a credit card, it will not lower your credit score. However, it's important to note that while soft pulls do not impact your credit score, they may still show up on your credit report.

When Should You Be Concerned About Soft Pulls?

If you're concerned about protecting your credit score, you should be aware of the frequency of soft pulls. While one or two soft pulls here and there won't impact your credit score, multiple soft pulls in a short period of time may raise red flags to lenders. This is because multiple soft pulls in a short period of time can indicate that you're actively seeking credit or may be experiencing financial difficulties.

Tips for Applying for a Credit Card

Now that you understand the difference between soft pulls and hard pulls, here are some tips for applying for a credit card:

1. Check your credit score before applying: Before applying for a credit card, check your credit score to see where you stand. This will give you an idea of which credit cards you may qualify for and can help you avoid unnecessary hard pulls.

2. Apply for credit selectively: Only apply for credit when you need it. Applying for multiple credit cards in a short period of time can lower your credit score and make you appear desperate for credit.

3. Read the fine print: Before applying for a credit card, read the terms and conditions carefully. Make sure you understand the interest rates, fees, and rewards associated with the card.

4. Pay your bills on time: Paying your bills on time is crucial to maintaining a good credit score. Late payments can have a negative impact on your credit score and can make it difficult to obtain credit in the future.

Conclusion

In conclusion, a soft pull on a credit card typically does not impact your credit score. However, it's important to be aware of the frequency of soft pulls and to only apply for credit when necessary. By following these tips, you can protect your credit score and make informed decisions when applying for a credit card.